Land Valuation

dos30

My fiance and I are looking to build a house on her families land.
The 1 acre site along with other land is in joint ownership with her Mother and her Aunt, since they inherited it from their Mother.

The site is down a substandard road so applicants must meet strict planning criteria. Eg must be a son/daughter of land owner, land owner must own the land for at least 15 years, land owner must have at least 10 hectares.

We will have to pay her Aunt for 1/2 the value of the site. She will be getting an auctioneer to value the site. My question is how would this land be valued? It is only worth its value as farm land on the open market, however a 1 acres "Site" in the area would fetch approx 100k.

Dymo

A property can have a number of valuations and all be correct, as Agricultural land it might be only be worth €10,000 and as a site it could be worth €100,000. An auctioneers valuation should be based on all all circumstances and interested parties that are involved. If they know the piece of land is for a site they should give the valuation as a site, the only clause should be that the valuation is subject to planning permission.

But as its your Aunt they have to realise that if you don't buy it, its worthless to anyone else because they wouldn't get planning and its only a bit of grazing. So not matter what the valuation comes in at, its down to you negotiating with you Aunt and her family.

Land deals between family are rarely pretty.