The Complete Guide to Land Appraisal in Kenya
Investing in Kenyan land can be a great way to secure your financial future. With some research and careful planning, you can make a wise investment that will give you a lucrative return. However, you should conduct a land appraisal to ensure you get the best value for your money.If you are thinking about investing in Kenyan land, it is essential to have a good understanding of the appraisal process. Appraisers will consider many factors when determining the value of a piece of land, including its location, size, and potential uses. The appraiser will also look at recent sales of similar properties in the area to get an idea of the current market value.Kenya is known for its stunning landscapes, unique wildlife, and friendly people. Kenya is also a great place to invest in land. With its rapidly growing economy and population, the Kenyan land market has much profit potential.This post explains the different steps involved in the process, from the initial assessment of the land to the final valuation. It also includes information on the various methods of land appraisal and the factors that need to be considered when appraising land.
What is Land Appraisal?
A land appraisal is a process of estimating the value of the land. An assessment can be done for various reasons, such as for taxation or selling purposes. The appraiser will consider multiple factors, such as the land’s location, size, and condition, to conclude the actual value of the land.
Methods of Land Appraisal in Kenya
We have three methods of land appraisal in Kenya:
1. Cost Approach
The cost approach of land appraisal in Kenya involves considering the costs involved in development. For instance, if the land has boreholes and agricultural activities, the costs of setting up the borehole and planting the crops is factored in deciding the lands value.
2. Market Approach
This approach involves comparing nearby lands that have similar characteristics as the land in question. In addition, the values should be matching with the area’s current market value of lands.
3. Income Approach
This appraisal approach involves using the current income from the land to decide its value. For instance, if the land is on a lease, the income generated from the lease is used to determine the real value of the land.
The Process of Land Appraisal in Kenya
Land appraisal in Kenya is the process of determining the value of land for taxation or sale. The process is carried out by the Kenya Revenue Authority (KRA) in collaboration with the Ministry of Lands.
The land parcel identification in question
The first step in land appraisal is knowing the land owner. Nowadays, you can search for the title deed authenticity on the eCitizen portal on the ministry of lands dashboard.
A physical inspection of the land by a team of appraisers
The appraisers take into account several factors, including the size of the land, its location, its accessibility, and its potential for development. The appraisers should move into the physical location of the land and study the area around it. In addition, they also research the previous sales of neighbouring lands.
After the physical inspection, the appraisers prepare a report which is submitted to the KRA. The KRA then determines the value of the land based on the information. The value of the land is then used to calculate the amount of tax that is payable.
If the purpose of the appraisal was to sell the property, the seller now has a solid reason to set their price tag.
The Benefits of Land Appraisal in Kenya
Determine the value of land
Appraisals can be used for tax purposes
Determine the value of land for sale or lease or assess the value of land for collateral purposes
The land appraisal helps identify potential environmental hazards on the land.
The Challenges of Land Appraisal in Kenya
These factors can include the location of the land.
The size of the land. If the land is too big, it will be difficult to move around.
The type of land. The topography can also be challenging if the land is hilly or very steep.
The current market value of land in Kenya can fluctuate, making it difficult to determine an accurate appraisal.
The Bottom Line
Land appraisal in Kenya is a process that requires a lot of time, effort, and resources. However, it is also clear that the benefits of carrying out a land appraisal far outweigh the costs.
A land appraisal provides essential information that can be used to make informed decisions about the future use and development of land. In addition, a land appraisal can help resolve disputes and improve the overall efficiency of land management.
Frequently Asked Questions
How long does land valuation take in Kenya?
After submitting a request for land appraisal, it can take a few days, depending on the location of the land.
What do land valuers do?
Land evaluators provide useful information regarding land value to KRA, Banks, land sellers, and buyers.
What do land appraisers look to provide land value in Kenya?
Land appraisers consider factors like the land’s topography, location, size, nearby amenities, and the possible developments of the land. That helps them derive a figure of the land’s value.