If you’ve ever looked up your property on Zillow, you’ve probably seen an estimated value attached to it.
For a typical home, that number can be a useful starting point. But for a larger parcel of land or a property with development potential, an automated estimate may miss some of the factors that matter most.
That’s because land value depends on more than acreage and recent sales. What can actually be done with the property based on it’s unique characteristics and local zoning can have a major impact on what it is worth.
Two Similar Properties Can Have Very Different Values
Two 20-acre properties in the same town are not necessarily worth the same amount.
One may have the potential to support several future homesites, while another may be limited by wetlands, difficult access, steep slopes, or zoning requirements.
In many cases, the amount of usable land, access, and shape of the parcel matter more than the total acreage shown in the tax records. We evaluate land individually by going out and seeing it in person and evaluating the best use based on the unique conditions.
Zoning Can Change the Picture
Local zoning and subdivision regulations help determine what may be possible on a property.
Minimum lot sizes, road frontage requirements, setbacks, and other rules can all affect how many homesites a parcel may support.
For example, a 20-acre property in an area that permits smaller lots may have significantly more development potential than a similarly sized property in a rural zone requiring much larger lots.
That difference can directly affect what a builder or developer may be willing to pay.
The Property Itself Matters
An online estimate can see a parcel boundary, but it may not fully understand what is happening within it.
Wetlands, ledge, flood zones, steep slopes, and access points can all affect development potential. At the same time, features like views, water access, mature woods, or proximity to trails and open space may increase appeal.
The only true way to understand those characteristics is to walk the property and then evaluate it on its own merits.
Access and Utilities Affect Value Too
Road access and utilities can make a meaningful difference.
A property with public water and sewer may offer different possibilities than one requiring private wells and septic systems. Similarly, land with usable road frontage may require less infrastructure than a parcel where a new road would need to be constructed.
Those development costs are part of the equation when determining value.
So, Is Zillow Wrong?
Not necessarily. It is simply working with limited information.
An automated estimate can be useful as a reference point, but it may not know how many homesites your property could support, how much of the acreage is usable, what local zoning allows, or whether the land has features that make it especially attractive.
Those are often the details that matter most.
Our land development team are local experts. We take a closer look at the property itself, local regulations, and current market conditions to help landowners like you to better understand what their land may actually be worth.
You don’t have to be ready to sell to start that conversation. Sometimes it is simply helpful to know more about an asset you already own.
Wondering whether the online estimate is telling the full story?
Reach out to our land team to talk about your property, your goals, and the options that may be available to you.
