How do I determine the value of raw land?
I have been to the court house and what they have on record is not right. the value has risen because of new deveolpement and re-zoning.
So how do I determine the value.
Howdy BTS:
Do the steps that appraisers do. Get sold comps either from the MLS or by calling buyers and sellers of property that you find that have sold recently. A good indication also is what other sellers are asking for their land. This may be on the high side but gives you a place to start negotiations. Make sure the comps are close to the same size, location etc.
I go about it a different way. First, I estimate the number of lots that realistically could be subdivided. Then I determine what the new home would sell for on its lot. I back out a ballpark number for the per-lot improvement costs (streets, curbs, etc–not house construction), and the result is the value of one lot raw.
Nancy