Home Buying in 92861>Question Details

Amooracat, Home Buyer in 92861

How is land size factored into an appraisal and price? We are comparing homes that are the same size. One has .25 acres and one has .47 (all useable)

Asked by Amooracat, 92861 Tue Aug 17, 2010

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The land will definitely increase the appraisal. As James noted, lots of .47 acres are selling for over $500k. And neighborhoods with large lots tend to keep and increase their value more in the long run because people will improve and add on to the houses rather than move. As Orange County gets built out, more people will look for older houses with large lots to tear down and replace the house or remodel the house completely. You can always add on to the house if you have land, but you can't add more land.
0 votes Thank Flag Link Tue Nov 26, 2013
The lots in Villa Park (92861) are typically approximately 1/2 acre with some of the ones bordering Orange being about 1/4 acre. The half acre lots are typically valued about $500k for the land or about $25/sq. ft.
0 votes Thank Flag Link Wed May 1, 2013
Of course more land will add to the value, but really the issue here is which home appeals to you the most? Are you looking for privacy - do they both give you that or are you looking for future expansion or to divide the property. If you are like most buyers you are just looking for a little space with some privacy and what matters most is how well does each property suit your purposes - there is not as much difference as you would think between the sizes you mention, taking into account your needs.
0 votes Thank Flag Link Tue Nov 16, 2010
Customarily, a larger parcel of land that accompanies a home purchase will increase that property's overall value. Land is a commodity...and we are not making any more of it. Since the question you posed indicates that the land parcel is almost double in comparison, this would increase the value and the price - today and tomorrow (future). One approach an appraiser will take is the comparables sales activity on vacant land in the nearby vicinity. What is land selling for on a per square foot basis? What is the tax assessor's value of land in the area - which can be broken down into a per square foot basis, as long as you are utilizing comparable land parcels? There should be enough supporting data to convince you that you are paying fair market value for a property offering a sizably larger parcel of usable land, over a competitor with less.
0 votes Thank Flag Link Tue Nov 16, 2010
Land.

If it's all good land, it's factored in (as in bad).

You are looking at two properties. One has TWICE as much land as the other.

There are a bunch of ways of looking at it.

1. You will pay more in taxes (though land is generally taxed lower)
2. Can that land be subdivided off and a home built, leaving you with the .25 acres (like the other house), If so, the land has value to a builder.
3. Do you ever want to expand your home, you have more land and maybe no need for vairances.
4. It depends on all the other homes in the area (the comps)
5. Maybe you wan to add a pool, swingset, patio - more land, the merrier.

IS it hilly, flat, treed etc etc.
Web Reference: http://www.rentlaw.com
0 votes Thank Flag Link Tue Aug 17, 2010
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