Home Buying in 80206>Question Details

Chris Duhadw…, Home Buyer in Cherry Creek, Denver,...

how do i find out how much the bare ground is worth?

Asked by Chris Duhadway, Cherry Creek, Denver, CO Sun Feb 27, 2011

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15
Chris,

The best method to determine value is to decide what the "highest and best use" of the land is. The value of land depends on what that land could produce. In the city, this is what can be built on it. In the country, it's what can be grown from it. Subtract from this number the approximate loss in value for anything that could be blighting the property; flood plains, garbage dumps, power lines, etc.... Subtract the cost to build the project. Subtract from this the minimum profit a developer (or you) are willing to take for working the land, Don't forget to subtract professional fees for attorneys, permits, real estate agents, etc.... You should be pretty close to what the land is worth to you.

Of course, the fast way is to pull comparable sales for land with the same zoning and approximately the same size.. Not necessarily accurate but that should clue you in to whether its worth a closer look. Never, ever, trust the assessed value.

Hope that helps.

Spencer Barron
FlatGrass Realty
1 vote Thank Flag Link Mon Feb 28, 2011
Chris - you can start with the assessors office. They have the taxed value of any lot broken down by the land value and the value of improvements on the lot. It won't give you an exact value (see all the suggestions below) but it's a good basis. I've found the assessed value to usually be within 15% of appraised value.

Tim Klein
Broker
Metro Brokers - The Realty Werks
303.973.7600
1 vote Thank Flag Link Sun Feb 27, 2011
My first question to you for 80206 zip would be is it in Congress Park or Cherry Creek. Huge difference in values ~ I live in Congress Park and work that area, and would be able to do a land value assessment if you'd like. No obligation. Margaret Marshall
0 votes Thank Flag Link Mon Feb 28, 2011
Hello Chris,
There are already great answers to this question. I don't want to repeat any so what I will add is that the undeveloped lot is worth what a buyer is willing to pay at the time as well as other factors including location, if there are utilities and sewer taps installed, any other improvements, and what the state of the economy is at the time. With regard to the last one concerning economy, lots are hard to sell right now because of the current state of our economy with regard to loans and banks willingness to lend money on builders investments. To a bank, lending on land right now is not the best financial move for most of them. Most buyers will need a construction loan or pay cash for the lot. This limits the number of buyers and overall opportunity for sellers to sell under market time. That being said, there are some great deals on land and you should be able to get a steal on one in Denver right now.

PS Please be cautious of what the assessor office says the value of the land is right now. Values have gone down a bit lately and the best idea is to hire a Realtor and appraiser that specializes in the area you are interested in to do evaluations of the property before selling or buying.
Web Reference: http://www.ChrisMerman.com
0 votes Thank Flag Link Mon Feb 28, 2011
Chris,
Is your purpose for taxes or valuation for a lot purchase/sale for development? For Taxes, you can source the County Assessors Data avaialble to any Realtor. For valuation for purchase/sale you will need Market Value (not the assessors value). A knowledgeable Realtor can help you source Land Comps from the MLS. They can be tough to come by, but sometimes useful data is there.

I work with many developers and have helped them value & purchase land/lots. I would be happy to assist if you need it.

Good luck!
Web Reference: http://www.jonrroberts.com
0 votes Thank Flag Link Sun Feb 27, 2011
The best way is going to be by calling a realtor who you trust. Your realtor will be able to run comps on properties without improvements on them, and evaluate the worth of just your land from that. If you have more questions feel free to contact me at Jimismyagent@gmail.com.
0 votes Thank Flag Link Sun Feb 27, 2011
Chris,

I love this network. You have some great answers already. I would love to discuss your question further. I have had an eye out for lots and land in central Denver for a while. I think I could be of help.

Good luck with your search.

Best,

Amie MacKenzie
amiemackenzie@gmail.com
http://www.dwellstrong.com
0 votes Thank Flag Link Sun Feb 27, 2011
Hello Chris,
This is a direct conversation that you should have with an agent. If you're looking in the Cherry Creek area, many of us can recommend other agents. You can also use Trulia's search engine.

The sparse information you have provided could call for a number of answers. If you're looking for information to compare lot prices, including properties with improvements that may need to be "scraped" then you should recast your question as such.

Hope that helps.

Best,
SuZ
PML of Longmont, CO
0 votes Thank Flag Link Sun Feb 27, 2011
HI Chris,
It looks like you have lots of good suggestions and answers. The zip code that you have asked about is the Cherry Creek area. Of course, more details would be good to give you a more specific answer. I would love to help you. I do a lot of work in the Cherry Creek neighborhood and know it well. My office is located there also so we can easily meet there. I also have a wonderful appraiser if you would like to call him, I can pass on his contact information to you.

Feel free to give me a call or email.
Kind Regards,
Wendy Glazer

303 906 9000
bdglaz@aol.com
http://www.wendyglazer.com
Web Reference: http://www.wendyglazer.com
0 votes Thank Flag Link Sun Feb 27, 2011
The price varies with the location and the zoning. In Denver, many buyers have bought a lot with a small house on it and then scrape the house and build their new $1,000,000+ house on the lot. Land right now is sitting on the market for extended periods and therefore you can find many good deals. If you think you may be interested in a beautiful 4.49 acre wooded lot in Black Forest north of Colorado Springs, I have a listing in High Forest Ranch (gated community) which has homes in the $600k to $2,500k. Whether it's land in Denver Metro, beautiful mountain land in the foothills or land south of Denver toward Colorado Springs, I would be happy to find you the land that meets your requirements. If you need a builder, I have names of quality builders who I can refer you to.

John V Coyner
Brokers Guild Cherry Creek
303-697-7528
0 votes Thank Flag Link Sun Feb 27, 2011
A lot mor information is needed.
What use are you looking for.
Is the "bare ground" entitled, zoned, and does it have utility access?
Are ther any liens or clouds on the title.

Absolute best way to find out is engage an appraiser who knows how to value land. Anthing else is just a guess, and waste of time. . I'm a builder,developer and broker, and have no vested interest in you decision; just giving good advice. http://holbenhomes.com
0 votes Thank Flag Link Sun Feb 27, 2011
Your question isn't well enough specified. Are you trying to find out:

1. With an existing house on a lot, what the land vs. house is worth?
2. With a piece of land that is being sold as a building lot, what that lot is worth?
3. With land that hasn't been subdivided or approved as a building lot, what that land is worth?

You need to explain a bit more about your situation for anyone to provide you with any useful information.
0 votes Thank Flag Link Sun Feb 27, 2011
As stated, the best way would be to a market analysis of lots in the area where you are looking; this will give you an idea of what the "bare land" or lot might be worth.
Your Realtor should be able to get this done for you.
Chuck Strauss
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
0 votes Thank Flag Link Sun Feb 27, 2011
Chris,

Bare ground in infill Denver can vary widely based upon the neighborhood and the current zoning of the property. You can find a lot for as low as 100k and have that price go upwards of 600k for something in a high demand neighborhood such as Cherry Creek. With neighborhoods narrowed down we can give you pricing for each area in particular. Land prices are great since most builders aren't developing homes like they were in previous years.

I have sold infill land for over 10 years and also have a great team of builders that can help with current building costs as well. Please feel free to give us a call or check out our blog and website.

Regards,

Jesse Sehlmeyer
VIntage Homes of Denver Inc
303-564-2245
Vintagedenver@gmail.com
0 votes Thank Flag Link Sun Feb 27, 2011
Bare Ground or "land" or "lots" . You can find sold land on http://www.kennarealestate.com
It is a litter harder to find out what it is worth, It is worth what a Buyer will pay. With no improvements (Structure) on it it may be a little harder to get a Loan on the land. Check out sold Comps of land in the area and try to get an Idea. A Realtor can help with this.
Brian

Find ALL Land below, Active, Sold and Under Contract
0 votes Thank Flag Link Sun Feb 27, 2011
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