Valuing plots of land
A net worth statement is only as honest as its valuations, and land is one of the places households most often get it wrong — usually by carrying the purchase price forward for years. The circle rate sets the floor for registration, but market value is what comparable plots nearby actually sold for. Two plots on the same road can differ by 30% on access and approvals.
- Liquidity grade
- Low
- Time to sell
- Months
- Revalue every
- Year
how fast it becomes cash
realistically
or when something material changes
The number to write down
The circle rate sets the floor for registration, but market value is what comparable plots nearby actually sold for. Two plots on the same road can differ by 30% on access and approvals.
What people get wrong
Land generates no income while you hold it and still costs you property tax and, occasionally, the effort of defending the title. Title disputes, encroachment and zoning changes are the real risks, and none of them show up in a valuation.
Keep the history, not just the latest figure
A single current value tells you where you stand. A series of valuations tells you whether the asset is doing anything for you. Record the value each time you check it, with the date, and the trend answers questions a snapshot cannot — like whether this holding has actually beaten inflation since you bought it.
Where FamTally comes in
FamTally stores plots of land with a purchase value, a valuation history and a liquidity grade, so your net worth reflects today rather than the day you bought. Add a new valuation whenever you get a fresh figure and the trend builds itself. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I value land?
The circle rate sets the floor for registration, but market value is what comparable plots nearby actually sold for. Two plots on the same road can differ by 30% on access and approvals.
How often should I update the value?
Once a year is enough for an illiquid asset, or whenever something material changes — a nearby sale, a renovation, a policy change.
Should I use the purchase price instead?
No. The purchase price answers a question about the past. A net worth statement is about what you could realise today.