Home Buying in 07067>Question Details

Suzanne Green, Real Estate Pro in Iselin, NJ

how would you price acre of land in upscale places with no comps?

Asked by Suzanne Green, Iselin, NJ Wed Apr 1, 2009

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4
Hi S,

Extraction. Rebuild young homes in the area with accurate cost figures. Then subtract the costs from the selling price. What's left over is a land value estimate.

Another approach is to analyze recent knockdowns and subtract demolition costs. A really old and depreciated house is basically a land sale.

-Marc

Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
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Century 21 Joe Tekula Realtors
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Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
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1 vote Thank Flag Link Wed Apr 1, 2009
There are always comps, regardless of the type of real estate. Land can be more difficult, especially if vacant or raw land with no improvements. If you are looking to purhcase or sell, it may be beneficial to you to contact an appraiser to assist in determining a selling or purchase price. In some instances and type of real estate, one has to go farther out (distance from the subject property) and/or farther back in time to find comps. With land, sometimes it is necessary to choose different size parcels as comps. Whether the comps are farther away, larger or smaller, and/or older sales, there are necessary adjustments that need to be made to determine the current market value thereby enabeling one to determine a reasonable selling or purchase price.
0 votes Thank Flag Link Thu Apr 2, 2009
If you find prices for your area of what a contractor would charge per square foot to build a home of similar value as the neighboring homes then deduce from current home listings the value minus the build costs. Lot location and other factors play a key role. If you list and have zero activity, then Realtors are ruling you out as too high. If Realtors are inquiring regulary but you have no buyer offers, then buyers are finding what they perceive to be better values elsewhere.

Best wishes in all your endeavors.
0 votes Thank Flag Link Thu Apr 2, 2009
A general rule of thumb for builders is 1/4 to 1/3 the value of a home you could build and sell new on that site. (if new homes are selling for say $1,000,000, the range could be from $250K-$330K). If selling to the actual future owner occupant you might get more but may have to do much of the due diligence or prep work first ie permits, septic well... If the lot is unique say with a fabulous view or backs up to rail lines etc the value can be very different either way;so it may depend.
0 votes Thank Flag Link Wed Apr 1, 2009
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