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Back to the topic... why is land so expensive? Are the owners trying to rip people of or is there some realistic reason that the prices are that high?
Land is not expensive everywhere. In many parts of the country land is below 1,000 an acre, in even more, less than a few thousand an acre. Some places, people are just willing to spend more, because there are too many people after too little land. Exactly why this lot you want is priced at what it is, is impossible to tell based on the info. provided. It makes no sense to me if it's as you described it (house with land costing same as bare land), but they may trying to price out people they don't want there too.
Land is expensive because there is only so much of it available. It's pure supply and demand. The more people want it, regardless of the location, the more expensive it will be.
A good number of signs on vacant lots are put up by people who are speculating on the lot. They bought it for an long term investment or possibly as a tax shelter and are not really interested in selling it unless they can make a good profit. Since they are content to sit on it for years and years, they put a high price on it just in case they get someone who has fallen in love with it and is willing to pay more than it is worth.
If no one makes an offer they still have what they bought and can use it for it's intended purpose. If someone makes a sufficiently large offer, then they can sell it pocket some profit and buy another lot somewhere and start the tax shelter over.
All your ideas is still not quite what he is talking about.
We know price depends on view, terrain, waterfront, shape, vegetation and on and on and on.
We are talking about 2 identical everything lots. But one has a house and one does not. Same or real close to the same asking price.
And yes it also depends on availability of sewer, water, electric and things like that. This is not what we mean either.
Take a look in the Homes Magazine. Look what they are asking for a lot and then check the prices of the neighboring homes.
That is exactly what I am talking about. These lots are the same in every respect, yet the one without the house is the same price as one with a house. There are no builder for the lots either. No extra scenery or anything since they are adjacent to each other. Not only that, sometimes there are lots of trees that need to be removed from the lot in order for it to be buildable. I just find it weird that they are charging so much for an empty lot. I was wondering if the housing boom caused this? Or if this had been happening for a while or if the land owners are just trying to rip someone off (perhaps they were ripped off to begin with and trying to recoop some of those losses and more)... Even the property tax auditors don't value these land as much as the land owners want to charge for it...
I suppose they could buy it for "investments" and the "supply and demand" but I notice demand has been way done which also has caused them to drop their prices in the six figures BUT their prices are still in line with the house + lot next to it. I hope they are happy with paying property taxes on their investments... perhaps the government should start imposing property taxes that is more reflective of what the owners are selling it for, a dis-incentive for price gouging...
You should offer $1000/acre like what arctichomsteader said. See what happens.
I know what he's talking about though. You can find areas of the country still where land is very inexpensive. Usually there's a reason for the low price though....because it's in the flippin' middle of nowhere.
I know what he's talking about though. You can find areas of the country still where land is very inexpensive. Usually there's a reason for the low price though....because it's in the flippin' middle of nowhere.
Hey, my land isn't in the middle of no where. It's in the middle of a spruce forest.
I'd love to see the look on the face of the seller if they were offered $1,000 for it. Personally I wouldn't even pay that much to have people stacked on top of me on either side.
That is exactly what I am talking about. These lots are the same in every respect, yet the one without the house is the same price as one with a house. There are no builder for the lots either. No extra scenery or anything since they are adjacent to each other. Not only that, sometimes there are lots of trees that need to be removed from the lot in order for it to be buildable. I just find it weird that they are charging so much for an empty lot. I was wondering if the housing boom caused this? Or if this had been happening for a while or if the land owners are just trying to rip someone off (perhaps they were ripped off to begin with and trying to recoop some of those losses and more)... Even the property tax auditors don't value these land as much as the land owners want to charge for it...
I suppose they could buy it for "investments" and the "supply and demand" but I notice demand has been way done which also has caused them to drop their prices in the six figures BUT their prices are still in line with the house + lot next to it. I hope they are happy with paying property taxes on their investments... perhaps the government should start imposing property taxes that is more reflective of what the owners are selling it for, a dis-incentive for price gouging...
Well clearly they're either looking for someone dumber than them (what did they pay for it in the first place?) or they're trying to use it as an investment. FWIW, I wouldn't be too quick to clear any trees if I did buy it. They'd put something between a house and the neighbors. And if they were large, old, hardwoods like walnut, oak, etc., those would be valuable trees (though even the high value of a top quality walnut wouldn't put a dent in what they're asking for that land!).
I wish..... I investigate every land price by comparing the county auditor's apprasial and what the land owner is selling... the difference between them is often in the six figures.. makes no sense... lands out in the middle of nowhere are actually correctly priced with what the apprasials have them at so that isn't a problem... it is the land inside or on the outskirts of cities that are way overpriced... the lands that I do find that are actually lower than the apprasial sites are high crime/ghetto areas and low income apartment complexes... The people trying to sell these lands for millions are paying much less in property taxes as the land is half or less that by apprasial value... I personally think they actually appraise their next door neighbor's lot + house to get at that value for their lot... basically you are paying them profit of land appreciation + the value of a house... making a profit equal to a house? There is something wrong with that...
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