When valuing a property, which factor might affect the land value?

Neighborhood demand and trends significantly influence land value because they reflect the desirability of the area where the property is located. A vibrant neighborhood with a strong demand for housing can lead to higher land values as more buyers compete for limited parcels. Conversely, if an area experiences decline or negative trends, such as increased crime or poor schools, the demand may decrease, resulting in lower land values.

Factors such as depreciation of structures, cost of improvements, and interest rates, while important in the overall property valuation, do not directly impact the intrinsic value of the land itself. Depreciation pertains to the wear and tear on structures, which diminishes their value but does not directly affect the land. The cost of improvements (such as building additions or renovations) pertains to the physical structure rather than the land value, and while interest rates influence the affordability of purchasing property, they do not change the inherent worth of the land itself.