Dear Monty: My parents own about 20 acres of land on the outskirts of a growing suburb in Iowa. They are in their 60s and want to sell; they're still determining the best way to sell or market it. Should they divide it into lots for development, sell it as farmland or sell as a single lot to someone who wants a country home? What type of person can give them a sense of what the property would be worth in each scenario? Is it a special type of appraiser? There are a few appraisers in the area, and the ones there are mostly tied to banks and assess homes. Should we use a real estate agent, or another type of professional that I don't know of? I appreciate any help you can provide.

Monty's Answer: To help acquaint you with some background on my recommendation below, a bit of history will strengthen the value of my recommendation. We define real estate parcels by their space and place in our geography. The definition of a parcel is an immovable object. Registered land surveyors with specialized training in measuring and documenting land parcels complete the work. We have surveyed and spatially identified the most usable land before being designated for eventual ownership. Land ownership records are open and available for all to see. The county government is responsible for filing, recording, and updating parcel records to keep the chain of ownership current. Title and abstract companies are private companies that search and issue guaranteed reports on these records for a fee. The rights of ownership also carry responsibilities. Easements, zoning codes and restrictive covenants that "run with the land" are common for most parcels. Understanding this system can be important when making certain land development decisions. For example, if you want to build a concrete plant, will covenants or zoning codes allow it? A registered land surveyor will have the answers as to what must happen to ensure you can proceed. Property issues are much easier to avoid by doing your homework early.

THE ANSWERS TO YOUR QUESTIONS

No. 1: Do not call an appraiser. If you hired three appraisers, you would get three different opinions that could vary by 50%. Additionally, in the current undeveloped state, the appraiser may be limited to using undeveloped comparables.

No. 2: Do not call a real estate agent. Like an appraiser, and assuming three different agents provided a scope, there would be three different opinions. As unlikely as it may seem, many real estate agents must be more skilled in estimating value. They would also have the same constraints as the appraiser with the undeveloped nature of the parcel.

No. 3: Call a state-registered land surveyor who is currently active in that area. Explain that you would like them to inspect the property and suggest available alternatives. If it is a residential subdivision, ask what it would cost to design a layout. They may charge you for the visit, but they may not. Depending on the parcel size, they can provide sketches of available alternatives for a minimal fee. One could use such drawings when marketing the land. You will learn more and get better information than you will from the other sources mentioned. You can determine which surveyors are active by inquiring at the property listing department in the register of deeds office.

Richard Montgomery is the Founder of PropBox, the first advertising platform to bring home sellers and buyers directly together to negotiate and close the sale online. He offers readers solution choices for their real estate questions. Follow him on Twitter(X) @rmpropbox or DearMonty.com.

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