Most buyers or sellers don't know how to value their land, not all land is the same, commercial land may be worth more than residential or agricultural land, and occupied real estate may be easier to value than unoccupied land. Land is a very important factor of production.

Land is generally divided into three categories: urban-suburban-rural or agricultural, and from here we think of valuing these categories according to their uses, either residential, agricultural, commercial, or industrial. Many different methods are used in the valuation, such as collecting data for nearby vacant spaces, analyzing and comparing sales, or using cost and income.

The reason for the difficulty of analyzing historical data in the Saudi market is due to its unavailability or lack of it, but with the development of regulations and transparency through the Ministry of Justice and its reports on land sales in neighborhoods and prices for each region will contribute in the future to find an important factor when evaluating real estate units and will start with the historical record of each property.

Factors of utmost importance in estimating or assessing the value of commercial land, for example:

Access to land: This is a key factor and is confirmed by real estate experts (location, location, location).

Land type and characteristics: Mountainous, coastal, sandy, hard.

Mountainous, coastal, sandy, hard.

Size: The larger the land, the lower the price, such as buying bulk products at affordable prices.

Size.

Development and improvements: Such as adding services, roads, or settlements.

Development and improvements.

Land Use: The requirements of the area, or the streets on which it is located, and its land use permissions for certain activities.

Land Use.

Neighboring land uses and market direction: What is being done on neighboring lands may be indicative of the direction and future of the market and may be complementary to similar or supportive services that are not completed around them.

Neighboring land uses and market direction

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Also, there are many factors specific to each land, such as facades, lengths, depth, construction rate, services, quality of streets, etc. that require the resident of the land to pay attention to them.

In conclusion, there remains a hidden factor that may be difficult to estimate, which is the buyer's preferences or demand for a particular land for special reasons and this causes a disparity and difference between the market value and the price, as we see in auctions and this is more dangerous for the buyer who gets involved in bidding with those and their "need in the same Jacob..." which is not disclosed.

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But without the demand function value alone cannot influence price, and market value and market price can be equal in an equilibrium market.

But without the demand function value alone cannot influence price, and market value and market price can be equal in an equilibrium market.