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Old 01-21-2008, 02:03 PM
 
Location: Dallas, NC
1,703 posts, read 3,451,665 times
Reputation: 807

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Since you are the professionals, I thought I'd pose a question to you. How much is land actually worth??? Here is the situation:

We are in a subdivision in Gaston County, NC. We have a .88 acre lot on the corner. It's easily the largest lot in the subdivision by at least half. We built there 9 years ago when they were just starting. We have the house on the market listed in line with comps in our area. The house in great condition with new laminate flooring, a huge kitchen with tons of cabinets, a brand new storage building, ceramic tile in bathrooms. My question is how much is that larger lot worth in real terms? Everything just got listed on line Wednesday night (last week) and b/c of bad weather, flyers went up Friday evening. We have had 3 showings since Saturday and know others are calling to set up times to see it. Most are saying the lot is bringing them in. If other houses have sold for around $3000 less than list price and they are basically the same as ours with much smaller lots, is it realistic to think ours should bring a good price? The MLS number is 739914. The listing agent, who has shown the house all 3 times, said everyone has loved the colors, etc. One couple is scared b/c it's their 1st home, one I know and knew couldn't afford the payments, and the other was today so I'm not sure. Any thoughts are appreciated. Thanks!
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Old 01-21-2008, 02:26 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,670,408 times
Reputation: 3809
Quote:
Originally Posted by austinsmom View Post
Since you are the professionals, I thought I'd pose a question to you. How much is land actually worth??? Here is the situation:

We are in a subdivision in Gaston County, NC. We have a .88 acre lot on the corner. It's easily the largest lot in the subdivision by at least half. We built there 9 years ago when they were just starting. We have the house on the market listed in line with comps in our area. The house in great condition with new laminate flooring, a huge kitchen with tons of cabinets, a brand new storage building, ceramic tile in bathrooms. My question is how much is that larger lot worth in real terms? Everything just got listed on line Wednesday night (last week) and b/c of bad weather, flyers went up Friday evening. We have had 3 showings since Saturday and know others are calling to set up times to see it. Most are saying the lot is bringing them in. If other houses have sold for around $3000 less than list price and they are basically the same as ours with much smaller lots, is it realistic to think ours should bring a good price? The MLS number is 739914. The listing agent, who has shown the house all 3 times, said everyone has loved the colors, etc. One couple is scared b/c it's their 1st home, one I know and knew couldn't afford the payments, and the other was today so I'm not sure. Any thoughts are appreciated. Thanks!
Land will be valued differently in every area, and by every individual. A person may like your home but not like the big lot. The larger size would be a maintenance liability to them so they would value it less.

A person with kids and a use for the extra space may value it at a little more than a similar home with a smaller lot.

It today's market, unless there is a very good use for the land, that a buyer can see value in, it may not bring much more, if any, than a similar home on a smaller lot.

An appraisal may be in order here so that the appraiser can weigh in with a professional opinion on the lot value.
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Old 01-22-2008, 05:14 AM
 
Location: North Pittsburgh
353 posts, read 1,513,110 times
Reputation: 154
Just to add to Captain Bill's response - Many buyers do not like corner lots because of the lack of privacy in the back yard (hence, no increased value.)
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Old 01-22-2008, 07:16 AM
 
Location: Maryland - Howard County
195 posts, read 656,469 times
Reputation: 60
To add to what everyone has said, which I agree with - you have to remember that a larger lot does not always mean more money. For instance, in the area that I work and live in, a 1 acre lot vs. a 2 acre lot does not add too much value to the sales price, if any at all. Unless of course that two acres can be subdivided and created into two lots.

If you are .88 acres and your neighbor is .50 acres it really is not that much difference. If your house is larger, that's where you'll get the most value.
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Old 01-22-2008, 07:23 AM
 
Location: Simpsonville, South Carolina
333 posts, read 1,063,505 times
Reputation: 136
Hey. We are in the same boat, almost. We have one of the largest lots in the subdivison , but are on a cul-de-sac. We have our house on the market, and we thought that would be one of the biggest selling points. However, there is quite a bit more maintenance involved. Here, the lots seem to be getting smaller, and houses bigger. People are too busy with life, to cut grass. So , I think it depends on the area. Bottom line, as with many things in a house, it may add to curb appeal, but not value. Our realtor said it depends on the appraisor. We might get $2k for the larger cul-de-sac lot, or we may get nothing. Hard to believe someone else would not appreciate a large lot for us, but we surely believed it when we were told we had an offer coming from an 80 year old. We were worried how she was going to keep all this up. Anyway, that fell thru. Good Luck. Just have to find the right buyer for our homes! Liz
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Old 01-22-2008, 07:31 AM
 
Location: Annandale, VA
9,447 posts, read 7,593,764 times
Reputation: 6000
Some buyers will not purchase a house on a cul-de-sac. They become defacto playgrounds for the neighborhood kids and the increased noise and "toys" littering the streets are a turn off.
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Old 01-22-2008, 07:37 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,670,408 times
Reputation: 3809
Quote:
Originally Posted by kevinm View Post
Some buyers will not purchase a house on a cul-de-sac. They become defacto playgrounds for the neighborhood kids and the increased noise and "toys" littering the streets are a turn off.
Unfortunately that's correct, but I love cul-de-sacs because there is less traffic, and they are typically safer because there is only one escape route for burglars.
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Old 01-22-2008, 07:51 AM
 
Location: Albany, OR
540 posts, read 1,895,282 times
Reputation: 356
I think where most people get confused on this issue is that there is an inherent VALUE in land in most of our minds. Builders (and likely the builder in this case) often charge a "lot premium" when the original buyers purchased it. They do this based on what THEY at the time view as the prime home sites (either by size or by location), charging a premium for ones that are considered more desirable at that time. We sell land often by "price per acre" so this becomes a normal assumption.

However, market value at this point (resale) has to take into account too many other factors, of which the size of the home site is only one. The builder didn't have to worry about curb appeal, staging, or general condition of the home...all of which could have as much impact on your eventual price than the actual size of the home site.

Good luck.
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Old 01-22-2008, 10:36 AM
 
Location: Annandale, VA
9,447 posts, read 7,593,764 times
Reputation: 6000
Quote:
Originally Posted by DavePautsch View Post
I think where most people get confused on this issue is that there is an inherent VALUE in land in most of our minds. Builders (and likely the builder in this case) often charge a "lot premium" when the original buyers purchased it. They do this based on what THEY at the time view as the prime home sites (either by size or by location), charging a premium for ones that are considered more desirable at that time. We sell land often by "price per acre" so this becomes a normal assumption.

However, market value at this point (resale) has to take into account too many other factors, of which the size of the home site is only one. The builder didn't have to worry about curb appeal, staging, or general condition of the home...all of which could have as much impact on your eventual price than the actual size of the home site.

Good luck.
"Lot Premiums" are pure profit that goes directly into the pocket of the builder and is not recouped when you want to sell. If you are buying a house and intend to move within 10 years, it is better to buy the cheapest lot. The value of the property is related 100% with the house that sits on it. Let your neighbors drive up the value of the houses on your street and you get to ride the same wave! By the way, I do not pay the lot premium. It is negotiable.
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Old 06-19-2013, 10:26 PM
 
1 posts, read 12,351 times
Reputation: 10
what is an acre and a half of land with trailer worth
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