Overview
Waterfront, ravine, corner and premium positioned lots often command stronger buyer interest, but their value impact varies widely.
These properties require more detailed analysis because lot based premiums are highly dependent on view quality, privacy, elevation, land configuration and the expectations of buyers in that specific neighbourhood.
This guide explains how appraisers evaluate premium lots and how market behaviour determines their true contributory value.
Premium lots influence valuation differently than interior lots.
Understanding this helps homeowners:
• Set realistic expectations
• Recognize why premiums change between neighbourhoods
• Understand how buyers perceive lot advantages
• Avoid assuming every premium lot has the same value impact
• Prepare for lender questions regarding lot based adjustments
Accurate analysis protects everyone involved by tying premiums directly to measurable market evidence.
A lot is considered premium when it offers features that buyers will consistently pay more for.
Common premium characteristics include:
- Direct waterfront access or unobstructed water views
- Ravine, greenbelt or treed exposure
- Significant privacy compared to neighbouring homes
- Extra wide or extra deep dimensions
- Corner positioning with stronger light exposure
- Elevated or unique view corridors
- Rare orientation within the subdivision
These features influence value only when buyers in that neighbourhood perceive them as meaningful.
How Appraisers Measure Lot Based Premiums
Appraisers rely on clear market evidence to support lot premiums. Key methods include:
When Lot Premiums Are Strongest
Lot premiums tend to be more significant when:
• View quality is unobstructed and consistent year round
• The lot provides meaningful privacy
• The home sits within a neighbourhood known for premium lots
• Comparable sales reflect similar advantages
• Land scarcity increases buyer competition
Ravine or waterfront properties in established areas often show the strongest premiums due to limited supply.
Premiums may be limited when:
• The feature is present but not meaningful, such as small ravine gaps
• Privacy is overstated or seasonal
• The neighbourhood does not value lot variation strongly
• The lot backs onto minor trails instead of true green space
• The premium creates functional drawbacks, such as an oversized slope
Market reaction is always the deciding factor.
“Waterfront always means maximum value.”
Only if the water access and view quality are desirable and consistent.
“Corner lots always sell for more.”
Some buyers avoid corner lots due to traffic and visibility.
“A deep lot guarantees a high premium.”
Only if the additional depth adds real usability.
“My lot is one of a kind, so it must be worth significantly more.”
Uniqueness alone never determines value. Buyer reaction does.
Why are there fewer comparable sales for premium lots?
Premium lots are rarer, so sales are naturally limited. Appraisers compensate with wider searches and paired sales analysis.
Do lenders question large lot premiums?
Yes. Larger premiums require stronger explanations and more detailed support.
Is privacy a measurable value factor?
Yes, when buyer behaviour consistently shows higher demand for private exposures.
Does lot size matter more than view?
Not always. View, usability and privacy often influence value more than raw size.
If you own a waterfront, ravine or premium positioned lot and want a clear understanding of how buyers in your area value those features, our team can provide a detailed, lender ready appraisal supported by real market evidence.
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