4 Most Important Factors Affecting Land Value in Colorado

colorado land value

So, you just found out you inherited 10 acres out in the Rocky Mountains. But what is it worth?

Valuing land is a lot different than determining the market value of a house or even an income producing property.

When it comes to homes, they are typically valued on a price per square foot basis, and it is very easy to find sold comps in the immediate area to base the value on.

For commercial or income producing multifamily properties, they are valued on a cap rate which is typically consistent for the immediate area.

Land comps, however, are few and far between. Furthermore, there are a select number of factors that must be looked at which can have a big impact on the value of the land and whether there will be buyers for the property.

EZ Land Holdings is very active in Colorado, both in mountainous and flatter desert areas. We are intimately familiar with the features and attributes buyers are looking for and below is what we have learned over the years:

1. Location

colorado land value

This one is probably obvious to most of you, but the biggest impact to the value of any one piece of land is where it is located. Not only the general area (counties, cities, etc.) but even down to very specific roads or elevations.

For example, in Colorado certain areas have been impacted by wildfires but a half mile away, the timber is untouched. This could have a huge impact on the potential buyer pool for the property.

Another factor in Colorado is elevation. Areas high in elevation could be extremely difficult to access during winter months, and they can also be above the tree line!

Besides elevation, the closer to a major city the land is, the more it is going to sell for per foot in most cases. Many people buy land for recreational purposes and in their eyes in needs to be within driving distance to a city with conveniences.

In addition, some areas will have different zoning than others. For instance, certain parcels will permit camping and RVing, and others won’t.  

2. Access

colorado land value

Finding out about access to a given parcel is usually one of the first questions we will ask any landowner interested in selling their property. Access is extremely important to the value of the land.

Land buyers are primarily only interested in parcels with both physical and legal access. In addition, whether the road access is paved or not is an important factor as well.

Unpaved roads can make it difficult to get supplies for someone to build a house, for example.

In addition, certain counties in Colorado, such as Costilla, have many acres of land that are completely land locked! These properties do not have much value. However, be sure to check on easements as sometimes it may not look like there is access but there are easements through the neighboring parcels.

3. Water & Utilities

Access to utilities and water is a major factor impacting the value of your land, especially if one is looking to build any structure on the property.

If there is no water, sewer, or electric to the lot line it will have to be brought in. For more rural properties well and septic tanks work well if the land can support it. Electric is typically more straightforward as long as the neighboring properties have it.

If it is not nearby, it can be very expensive to have the utility companies run the lines.

4. Grade

colorado land value

Colorado is a state full of mountainous areas with steep grades and elevation changes.

Often the land is so sloped it is impossible or impractical to build a structure or get any use out of the property.

When we evaluate properties to purchase, we take a very close look at the slope of the land and see where any structures can be erected. This has a huge impact on the value of the property.

In Conclusion

In addition to these 4 factors, we do look at many more features and attributes such as water features, soil quality, minerals, timber, and more. However, understanding location, access, utilities, and slope will give you a solid footing when trying to evaluate your property in the great state of Colorado!

We are happy to provide any more insight or answer any questions you might have about your piece of dirt. Feel free to contact us at any time on our site!

www.EZLandholdings.com