Pablo, Home Buyer in Hollywood Hills, Los...

Why are some lots relatively cheap? What's the catch? 8 thousand square feet lots for 100K/not

Asked by Pablo, Hollywood Hills, Los Angeles, CA Wed Aug 26, 2009


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Deborah Bremner’s answer
Not all 8000 square foot lots are created equal! The answers below touch on some important issues. When an appraiser or Realtor looks at the comparable properties, he does so with an eye to the values of the existing properties surrounding the lot. Good improved property surrounding the lot = higher value. The price per square foot (PPS) of the land will be most directly affected by its topography (flat lot = higher value), the shape of the lot (regular/ rectangular is easier to build), the amount of frontage on the street (most people want wider frontage), and other "cosmetic" lot issues. Views (i.e. city, ocean, treetop) will command a higher price than no view, while a negative view (i.e. alley, buildings, freeway) will detract from the price. Are there utilities present or in close proximity? (Those are definite value added.) From there, it's a personal choice. Walk the lot with your contractor. Do all factors appeal to you? Then it's good value for you.
Hope this helped!
Debbie Bremner
Coldwell Banker/ The Bremner Group
33 Years Residential Realtor
"Your Home Is Waiting"
0 votes Thank Flag Link Thu Aug 27, 2009
The price for vacant land will vary depending on a number of factors- Some items are obvious, like views and location, but major things to consider are how close the lot is to public sewer and utilities and how buildable it is. An 8000sf lot that extremely steep will be much cheaper than a flat lot of the same size.
0 votes Thank Flag Link Thu Aug 27, 2009
some areas have more land than others, so there is more of it, more inventory and less demand lower price. Also right now hard money loans are very expensive. I heard of them being 11% and up, also buyers having to take a 3 point hit. Lenders are being very cautions on loaning money just on land, there is a lot of risk for them as you may not build anything or they will get their money back. So since less ppl are willing to get loans less buyers, less demand, cheaper the land..

Now is a great time to buy a empty lot if you have the cash.
0 votes Thank Flag Link Wed Aug 26, 2009
What are you using to compare your property information with? How do you know it's "relatively cheap"?

It seems you are looking for vacant lot to build? If yes, then I suggest you contact an agent for current listings and more accurate property details, including comparable market ananlysis (CMA) in the Hollywood Hills area.

Send me an email and I will provide you with access to the SoCal, including CLAW MLS active listings, including vacant lots.

Phone: (888) 525-0125
0 votes Thank Flag Link Wed Aug 26, 2009
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