Land Value

AAA

DEFINITION of 'Land Value'

The value of a piece of property, including both the value of the land itself as well as any improvements that have been made to it. Land values increase when demand for land exceeds the supply of available land, or if a particular piece of land has intrinsic value greater than neighboring areas (e.g. oil can be found on the land).

INVESTOPEDIA EXPLAINS 'Land Value'

Owners of land use land value to determine how much to charge other parties for its use. For example, an individual who is renting out several acres of farmland, for use by ranchers for grazing cattle, will determine an amount to charge for its use by looking at the market value of the land compared to land taxes and the capitalization rate.

RELATED TERMS
  1. Zero-Lot-Line House

    A piece of residential real estate in which the structure comes ...
  2. Plottage

    A real estate term referring to the process of combining adjacent ...
  3. Land Value Tax - LVT

    A tax on the value of a piece of land. Land value tax inherently ...
  4. Land

    Property or real estate, not including buildings or equipment, ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  6. Main Home

    A term used by the Internal Revenue Service (IRS) to define the ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Home & Auto

    Simple Ways To Invest In Real Estate

    Owning property isn't always easy, but there are plenty of perks. Find out how to buy in.
  2. Home & Auto

    Uncover The Next Real Estate Hot Spot

    Real estate land speculation is a way to get in on a hot investment before a boom hits.
  3. Home & Auto

    Exploring Real Estate Investments

    Discover how owning properties can give you a roof over your head or a check in your pocket.
  4. Options & Futures

    Give Yourself More Options With Real Estate Options

    Real estate options have many benefits, including a smaller initial capital requirement.
  5. Options & Futures

    How To Make Money WIth Real Estate Options

    Buying real estate options is one way to invest in real estate at a lower entry cost.
  6. Home & Auto

    What does "In Escrow" Mean?

    Escrow is a financial agreement involving two parties, usually a buyer and a seller. The buyer deposits money, securities or other funds into the escrow account, where they are held until both ...
  7. Investing

    Arm's Length Transaction

    An arm’s length transaction describes business deals in which the buyer and seller act independently and with no interest in the other’s benefit.
  8. Home & Auto

    Investing In Luxury Real Estate

    You might not have the money for a luxury home of your dreams, but that doesnt mean there aren't still plenty of ways to invest in luxury properties.
  9. Entrepreneurship

    Understanding The National Association Of Realtors

    Not every real estate agent or broker is a realtor. Here's what the difference is and why working with a member of the NAR might matter to you.
  10. Investing Basics

    Essential Tips For Buying A HUD Home

    Buying a HUD home from the government requires some studying and planning, but the reward can be huge. Here are some essential tips.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center