Selling land can be a tricky affair. It's not like selling a house – there are no organized comps and it's harder to find buyers. You need the help of real estate professionals, especially if you're looking for the best possible price when selling your land.
That said, on Discounted Vacant Lot, we have come up with our own pricing guide to help you determine the fair market value of your land. In this blog post, we will share step-by-step instructions on how to go through the process like a pro. Whether you are selling your land yourself or with the help of a realtor, our guide gives you an edge in the market.
How we Price Your Land- Use Our 17 Points Checklist
At Discounted Vacant Lot, we have a comprehensive process for pricing land. We start by assessing the essential features of your land and then use that information to help you find the right price for it. When it comes to pricing your land, we rely on 17 key considerations. Here is a detailed look into each of them:
Zoning
We consider how your land is zoned and whether it can be used for commercial, agricultural or residential purposes. Zoning can indirectly impact land pricing by influencing the potential uses and development opportunities for a piece of land. Different zones have varying levels of permitted uses, building densities, height restrictions, setbacks, and other regulations. These factors directly affect the economic value of the land by determining its development potential and potential revenue streams.
- Commercial: The price for commercial land is based on what zoning ordinances will allow and how much demand there is in the local market.
- Agricultural: The price for agricultural land is based on what crops can be grown, soil quality, slope of the land and access to irrigation systems.
- Residential: The price for residential land is based on its proximity to schools and other amenities, as well as potential future development.
Land Use and Restrictions
Land use restrictions refer to limitations and regulations imposed on the ways in which a piece of land can be utilized or developed. These restrictions are typically put in place by government authorities at various levels, including local, regional, and national, to achieve specific policy goals, maintain community standards, and preserve the environment. We also consider any land use restrictions that may be in place, such as table permitted use, RV or mobile homes.
- Table permitted use: Table permitted use restrictions limiting the use of land to specific activities, such as farming or residential construction.
- RV or mobile homes: Restrictions on allowing RV or mobile home access can affect the price of your land.
Size
The principle behind land size as a pricing determinant is straightforward: more land provides more space for various activities and development projects. Larger parcels of land can accommodate larger buildings, more extensive landscaping, and potentially multiple uses or subdivisions. As a result, they often have greater potential for generating revenue or accommodating a variety of residential, commercial, industrial, or recreational purposes. We look at the size of your land and compare it to similar properties in the area. The bigger the size, the bigger the value.
Location
Location is one of the most important factors when pricing your land, as it can greatly affect its value. We take into account any nearby amenities, such as schools, shopping centers or parks, as well as proximity to main roads.
- Value of surrounding houses: The value of nearby homes can also affect the price of your land.
- Proximity to jobs: We assess how close your land is to major employment hubs and consider the impact of the supply and demand in that area.
- Supply and demand of land in the area: We also analyze the supply and demand of land in the area, as well as any trends that may affect the market value.
Access
Properties with good access, such as proximity to well-maintained roads, highways, public transportation, and essential services, often command higher prices. We look at the ease of access to your land and consider whether it is accessible from multiple directions.
Public/Private Water
The availability of public or private water sources is a critical factor that influences the price of land. Access to a reliable and adequate water supply has a direct impact on a property's usability, development potential, and overall value. We consider whether your land is connected to public or private water sources.
Public/Private Sewer
The availability of public or private sewer systems is a significant factor that influences the price of land. Access to proper sewage infrastructure is crucial for ensuring sanitation, health, and overall property usability, thereby impacting a property's value. We take into account whether your land is connected to public or private sewer systems.
Electricity
The availability of electricity is a critical factor that influences the price of land. Access to a reliable and sufficient electricity supply is essential for modern living, commercial activities, and industrial operations, making it a fundamental consideration for property value. We analyze whether your land has access to electricity and if it is connected to any utility grid.
Shape
The shape of a parcel of land is a factor that can influence its pricing, as it impacts its potential uses, development efficiency, and overall market appeal.
Topography
Topography refers to the natural features and elevation changes of a piece of land's surface. The topography of a property plays a significant role in determining its pricing, as it influences its development potential, suitability for various uses, and overall aesthetic appeal. We also take into account the terrain of your land, such as whether it is flat or hilly.
Flood Zone
The classification of a property within a flood zone is a significant factor that can influence the price of land. Flood zones are areas designated by authorities based on the risk of flooding from natural sources such as rivers, lakes, coastal waters, or heavy rainfall. We consider whether or not your land is located in a flood zone and the implications that this could have on its value.
Wetland
The classification of a property as a wetland can significantly influence its price. Wetlands are unique ecosystems characterized by their waterlogged conditions, diverse plant and animal life, and vital role in maintaining ecological balance. We assess whether or not your land is located in a wetland and the potential environmental impacts.
Timber
The presence of timber on a piece of land can significantly influence its pricing and value. Timber, referring to the trees and wooded areas on the property, can contribute to the property's economic potential, aesthetics, and environmental considerations. We consider whether your land contains any timber and the associated value.
Environmental issues
Environmental issues can significantly impact the pricing of land, as they influence the property's potential uses, regulatory requirements, and overall market desirability. These issues encompass a wide range of ecological and sustainability concerns that affect the land's value. We also look into any environmental issues that could affect the value of your land.
Attributes
The attributes of a piece of land collectively shape its value and potential uses. These attributes encompass a variety of physical, locational, and qualitative characteristics that influence land pricing. We consider the unique attributes of your land, such as availability of resources, scenic views and wildlife.
- View: We take into account whether or not your land has any spectacular views.
- Proximity to places: We also look at the proximity to any places of interest, such as lakes or rivers.
- Water access: We analyze whether your land has easy access to a public or private water source.
Demand in the Areas
The demand for land in a specific area is a key factor that strongly influences its pricing. The level of demand reflects the desirability of the location and its potential for various uses, making it a critical consideration for property valuation. We assess the demand in the area for land and compare it to other similar properties.
Best use of this land
Determining the best use for a piece of land is a fundamental consideration that significantly impacts its price. The concept of "highest and best use" refers to the most financially advantageous and feasible use of the land that maximizes its value while considering its physical attributes, location, market demand, and local regulations. We consider the best use for your land based on its features and how it can be used to generate an income.
- Hold: We consider whether holding the land could be more profitable in the long run compared to selling it.
- Sell with owner financing: We also take into account whether or not it would be possible to sell the land with owner financing. This can sometimes generate a higher price for the property, as buyers typically prefer financing options over paying in full upfront.
- Subdivide: We analyze whether subdividing the land would be more profitable than selling it as one piece.
- Build: We assess whether constructing a building on the land could generate a higher return.
With these 17 considerations in mind, you can now confidently price your land and find the right buyer. If you are still unsure about the process, our real estate professionals at Discounted Vacant Lot are here to help. Get in touch with us today for a free consultation!
We are dedicated to helping you every step of the way and look forward to connecting with you soon!
Key Takeaways:
- When pricing your land, consider its zoning, land use/restrictions, size, location, access, public/private water/sewer, electricity, shape, topography, flood zone, wetland, timber and environmental issues.
- Analyze the demand in the area for land and the best use of your own land - whether it be to hold or sell with owner financing or subdividing/building on it.
- Reach out to our team of professionals at Discounted Vacant Lot for a free consultation or visit our website for more information about our services.
- Keep in mind that location, demand and access are three of the most important factors when it comes to pricing your land - so make sure to pay attention to those.
- Don't forget about the unique features of your land - such as views, water access and wildlife - as these can add value in buyers' eyes.
- Finally, always remember that there are many variables to consider when pricing your land and our team at Discounted Vacant Lot is here every step of the way.
So don't hesitate to contact us for assistance!
We look forward to hearing from you soon.