The Top 7 Ways to Increase the Value of Undeveloped Land

There are many reasons ‌people purchase raw land. Some want to build their dream home on it. Others hope to develop it for commercial use or split it up into multiple lots for a housing development. Still others just want to have a place of their own where they can camp, hike, grow crops, or even plant trees to offset their carbon footprint. 

No matter what the reason is for wanting to own the land, one thing remains the same: everyone wants their land to increase in value. Of course, value doesn’t always mean money. It could mean peace of mind. Luckily, much of the time, monetary value and peace of mind coincide. So read on to check out the top 7 ways to increase the value of undeveloped land!

1. Build on the Land

Yes, this is probably the most obvious way to increase the value of your undeveloped land. It also turns it from undeveloped land into developed land. That said, it is the best way to skyrocket the land’s value. But it also requires significant investment. 

Whether you want to build a house, a cabin, a tiny home, or a commercial enterprise ‌doesn’t matter. They’re all likely to increase the land’s value. Not only does the land have intrinsic value because of its limited supply, but the structure you build on it will have value too, increasing the overall worth of both. 

2. Ensure Access

One great way to improve the value of your undeveloped land is to ensure access. In terms of land, access means that you can get to the property by road. But what if there isn’t a public road near your land? Well, you can still ensure access by striking a deal with one or more neighbors to use their land to access your property. These agreements are known as easements, and they’re very common in the undeveloped land market. 

Access not only allows you to enjoy your property with ease, but it’s also one thing buyers will look at if you decide to sell your land. So whether you have an easement in place with a neighbor, or your land has access from a public road, ensuring this is a great way to increase your land’s value. 

3. Lease the Land

You may be able to generate income without personally making major changes to your undeveloped land. You can do this by leasing use of the land to others. Maybe you’re in cattle country and your neighbor wants to use the land for grazing. Or you’re in farm country and you want to lease it out for growing crops. 

While it’s important to think about the long-term effects of what the land will be used for, it could be worth it to put the land up for lease. This can provide a stream of income until you decide to sell the land or do something else with it. 

4. Allow for Utilities or “Green” Energy

After access, one important factor land buyers look for is utility hookups. Electricity is especially important and can increase the land’s value significantly. And since running electric hookups to the land can be costly, it’s worth checking into whether the land is zoned for renewable energy. 

Depending on where the land is, it could be ideal for either wind or solar power. Some states even provide generous incentives in the form of rebates to get landowners to adopt these types of “green” energy. For example, undeveloped land in southern California is often ideal for this, given the climate, amount of sunshine, and the incentives the state provides. 

Similarly, having plug-and-play access to water and sewer or a septic tank can increase the value of the land, especially in an area where most of the plots don’t have such access. Water access could be in the form of a well or access to a municipal water line.  

5. Build a Fence

Building a fence actually provides two benefits in one: it clearly denotes the property line and it makes the land more attractive to potential buyers who may want to raise livestock or horses. Of course, it’s important to know exactly where the property line is before building the fence to avoid possible disputes with the neighbors. 

Along with a fence, a quality gate can also be attractive to potential buyers. The gate, after all, is one of the first things people will see when coming to the property. This, along with the type of fence (barbed wire, wood slat, etc.) can give the land a sense of permanence and solidity that can allow you to ask for a higher price than you otherwise could have. 

6. Use it for Planting

We’ve already mentioned leasing your land to others for planting, but you can also do this yourself. Planting crops or growing trees can help prove the value of your land, making it a more attractive prospect for buyers. Even if you don’t want to sell it right away, there’s potential money to be made by planting crops or trees on undeveloped land. 

If the land already has trees on it, ensuring that they remain healthy can help the value increase. Healthy woodlands can also make for excellent recreational use, as well.  

7. Know Before You Buy

Sometimes the best way to increase the value of undeveloped land is to wait a little while. Land will always be valuable, but this is dependent on many factors. And as in all real estate, one of the big factors is location. 

If you want to maximize your profit with as little effort as possible, the thing to do is research the land before you buy. Purchasing a plot of undeveloped land in an area that’s undergoing development could allow you to sell the land for a significant profit in a couple of years or less. It really depends on how fast the area is developing. 

As an example, Project Phoenix in Twentynine Palms, California, is a massive development project that’s predicted to infuse the area with jobs, new homes, and plenty of opportunities. Land in the area is quickly increasing in value as a result. 

A bit of research and due diligence will go a long way to getting the right property if you’re looking to sell for a profit within a short timeframe. 

Conclusion

Land will always be an excellent investment. But, like any type of investment, there are many factors that determine your ROI. This is why Land Elevated provides some of the most detailed land listings on the market. 

Whether you’re looking to buy land for building and developing, or you simply want a place of your own that’s likely to increase in value over time, we can help. You can search for a property that fits your criteria using our advanced search filters. We also have dedicated Land Specialists available to help you find the perfect piece of land for your goals!