For many Kenyans, land is their biggest investment. They take great pride in the land they own and work hard to conserve it for generations to come. But there is no denying that the value of land changes over time as different factors affect its worth, and large-scale development projects can change a town’s economic landscape.
What is land valuation?
Land valuation is a broad term with different meanings depending on the context. In its most basic sense, it is the process of estimating the value of land by considering various factors. This might include nearby property values, comparable property values in nearby areas, and zoning restrictions. The more specific meaning depends on whether you are talking about an individual property or appraising land for taxation purposes.
If you’re interested in buying or selling a home, this piece will give you some valuable tips on how to conduct an accurate land valuation yourself so that you’ll be able to find out how much your home is worth. If instead, you are looking for information about how local authorities assess land for taxation purposes, this post will also provide some valuable insight into what that process entails.
The Process of Land Valuation in Kenya
Land valuation is a critical step in the process of buying, selling, or taking out a loan on your property. It’s an accurate way to measure the value of the land and will help you get a more precise estimate of how much it will cost to purchase the property or how much loan you can get on it. Land valuation is done by examining factors like location, size, soil quality, topography, development potential, and market trends. You can use this information to make an offer on the property or get a sense of what your home will cost you once you invest in land.
To find out more about land valuation in Kenya, contact us today!
Land valuation methods
This can vary depending on the purpose for which the valuation is being performed. An international land valuation will be different from a valuation for loan purposes, which will differ from that of an appraisal for insurance purposes. There are three main methods of land valuation:
1. Market Approach
This method uses the sale prices of comparable properties as a basis to determine the value of a property. The value is determined by comparing recent sales prices in the area with similar features, age and condition as your property and then adjusting to reflect any differences between properties that might impact the sale price.
2. Cost Approach:
This method uses actual costs incurred during the development or construction of a property as a basis to determine its value. It is based on the cost of materials and labor to develop or construct a property.
3. Income Approach:
This method is an analysis of the potential income generated by a property over time. It uses a combination of rental income and capital appreciation as a basis to determine the value of a property.
Why do I need to hire a land valuer?
Land valuation is a complex process. There are many factors to consider when valuing a plot of land, including the plot’s location and size, age, zoning, utilities access, and more. It can be difficult to value land without an experienced land valuer.
In addition to being an essential step in selling or buying a property, hiring a land valuer can help you understand the value of your plot of land. You may be outdated on recent developments that have occurred in or around your plot of land, such as infrastructure improvements or new zoning laws. Hiring a professional will help make sure you’re not overpaying for your plot of land and you know all the risks involved in purchasing it.
Determining a plot’s worth is complex and there are many factors to consider when evaluating the property. It has been estimated that about 80% of sellers don’t get their houses sold because they grossly underestimate the value of their homes. A professional evaluation from a qualified land valuer will help you determine an accurate market value for your home and avoid this common mistake!
Factors that Affect the Value of Land in Kenya
The value of land in Kenya is influenced by many factors, including location, size, quality, title deed and more. The worth of the land also depends on the demand for it.
The sale price of a property can be increased by its proximity to places like hospitals, schools or other amenities that are important to potential buyers. Prices can also be affected by the proximity of rivers or other natural features like forests that might affect the value of the land.
- Location: As mentioned above, location is an important factor in land valuation. It’s not just about how close it is to the city center but about how close it is to other amenities like hospitals, shopping malls, or schools. The closer you are to these amenities, the higher your property will be valued because buyers will know they’ll have easier access to them if they buy your property.
- Size: The size of the property you’re looking at will also affect its worth. Larger plots will naturally have a higher price tag than smaller ones so if you’re looking for a bargain then you should aim for a lot that’s about 1000 square feet or less.
- Quality: The condition and type of construction on a piece of land will also determine its worth. Land with buildings on it will be worth more than undeveloped ground as those buildings can be converted into valuable apartments for renters or luxury villas for those seeking a country retreat from bustling city life.
- Title deed: A clear title deed with no complications will be worth more than a piece of land with disputed ownership or one that’s been foreclosed on.
- Proximity to a major highway: If you’re looking at a plot that’s not in the city center, you’ll want to know how close it is to a major highway so you can easily get there for work or leisure.
- Nearby amenities: A property near schools and hospitals will be more valuable than one that isn’t because people looking for homes in the area will know they’ll have easy access to those amenities if they buy yours.
- Nature of the soil: The type of soil your land is built on will affect its worth as well. If it’s sandy, rocky, or too wet then it won’t be suitable for building on and won’t be worth as much as if it were fertile and well drained.
- Topography: The topography of your land refers to the shape it’s in. Is it flat? Is there a lot of slope? How accessible would it be for trucks or heavy machinery?
- Drainage: Is the land prone to flooding? What’s the drainage like? A topographical survey will answer these questions.
- The presence of underground water: If your land is built on an aquifer, you’ll want to know that before you buy it because you’ll have to do more work to get water and may have issues with flooding as well.
- The presence of underground oil: If your land is located above an oil field, you could make a lot of money by selling the rights to drill on it.
- Natural resources: natural gas, oil deposits, and other precious metals are found in Turkana Kenya. Is there a chance your property may be sitting above one of these? If so, that’s very valuable information indeed!
- Water availability: Water is scarce in Garissa, Mandera, Marsabit, Isiolo, and Wajir counties so if your land has access to a fresh water supply, that’s a big plus!
- Land use: If your land is currently used for farming or livestock, you’ll want to know if it can be re-zoned in the future.
How much does Land Valuation in Kenya Cost?
A typical land valuation in Kenya costs between KES 50,000 and KES 100,000, depending on factors such as location and size of the property. But keep in mind that this is just an estimate: you should do your own research before making any decisions to avoid paying more than necessary or purchasing a property for less than its worth.
Land value and loans
You can get a loan easily with Mwanachi Credit LTD if you are a holder of a title deed and your land or property is located in a developed area in Kenya. Areas like Nairobi and its outcast, Mombasa county, Eldoret, Nakuru, and Kisumu usually have higher approval rates for loans at Mwananchi Credit. With Mwananchi Credit you don’t need to high a valuer since we have our valuers saving you time and resources. Mwanachi Offers loans of up to 60 % (percent) of the value of your land/property. The good thing with these loans is that, they have lower interest rates and you can pay back in small installments
The process of land valuation in Kenya includes a number of steps, from assessing the property’s location to examining its size and condition. A land valuer can determine the price of land in Kenya by following a standard set of procedures and examining the property’s location, size, and condition.