Land valuation is a complex concept influenced by market demand, zoning, and regulations. One of the most overlooked yet critical elements of land valuation is the condition of the land's soil. 

Issues like unstable soil, expandable clay, or rock formations can have a significant impact on development and construction costs. In extreme cases, it can be a deal breaker.  

In a recent case study, a client planned to build a rental apartment on an approved site. When it was advised that a soil test should be done, the results revealed costly piling requirements exceeding $1 million, ultimately making the investment unviable.

Complex land valuations are just one area covered by Investit Academy's PDP-accredited online commercial real estate education and training. Visit their website today to get started.