Most of us who own homes make it a point to learn about home renovation initiatives that provide the best return on investment. For instance, remodeling your kitchen or bathroom will raise the value of your property more than adding expensive landscaping or redoing the inside of your garage.
Increasing the value of undeveloped lot for sale could be more challenging. That’s because different types of land are used for different purposes, including farming, recreation, and hunting. As a result, there’s no one-size-fits-all when it comes to land improvements and ROI. That being said, there are some tried and true ways to make your land more valuable and maximize your profits.
Pour a Slab Foundation
Pouring a concrete slab on an empty lot that is suitable for long- or short-term RV parking or for a property that’s designated for mobile homes is an excellent way to increase land value. In some circumstances, especially when the land isn’t very big, there will be some obvious spots where a slab could go. But be cautious—placing a slab in a less-than-ideal location may be more of an inconvenience rather than a benefit for future landowners.
Install or Fix a Fence
Vacant properties can benefit greatly from the addition of a fence and gate. Most fences are installed to offer the impression of security and to improve the property’s curb appeal. They convey that the owner values the property enough to take the necessary security precautions to make it more challenging to enter. A fence or gate cost can vary greatly depending on the material, height, length, and structure, but a higher price only sometimes indicates a better value.
Invest Time in Forestry Mulching
Forestry mulching means removing all the bushes, weeds, and other natural visual obstructions. When a potential buyer can see what the ground looks like and what can be done with the land, they are more likely to be able to envision what can be done with it. Luckily, forestry mulching doesn’t require cutting down larger, more mature trees but simply cleaning up the ground and soil so that the piece of land is aesthetically pleasing.
Trim and Remove Trees
Many vacant lots are heavily forested, and as a result, it can be challenging for prospective buyers to imagine how they could use the property. Much like forestry mulching, tree trimming and removal can help you clear the property and enhance its looks.
Keep in mind that tree trimming and removal are intended to clear certain trees, not all of them. It’s best to remove the smaller trees and plants to increase visibility throughout the property and leave the more mature ones. Another alternative is to clear some land for a homesite, thus making it easier for a new property owner to begin construction immediately. It’s crucial that you proceed with caution to avoid clearing the wrong area of the land for sale or cutting too many trees, thus harming the land’s aesthetic appeal rather than enhancing it.
Acquire Land Entitlements
Getting the property’s entitlements is one of the land enhancements that can be made without even touching the property. Entitlements, in a nutshell, are the privileges that an owner or developer has to transform their land for a particular use. Obtaining the municipality’s consent to move forward with the plans usually entails meeting with the city or township board with specific strategies on how the property will be developed. Getting this approval can significantly increase the value of a property, even if you have no plans to develop the land yourself. This is because the future owner or developer won’t have to go through this process, which can be time-consuming and difficult.
Get Water Access
Every home must have access to water. If there are no local water pipes on the site, you or the future owner will likely need to construct a freshwater well to address this issue before building. This job can be pricey depending on the depth of drilling needed and the amount of pressure required, but after the job is over, the property suddenly becomes much more functional as a home. Therefore, if you take care of it, you could ultimately sell the plot at a higher price.
Photo by Dylan de Jonge on Unsplash
Final Thoughts
Investing in land is a smart and lucrative way to diversify and grow your portfolio. When the time comes to sell your land, you’ll want to maximize your profit. Luckily, just like with a traditional home, there are improvements you can make to help you boost the lot’s purchase price and facilitate the sales process. These six easy ways will certainly help you enhance your property and protect your investment.
Cover photo by Andrew Reshetov on Unsplash
