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I am looking to buy some land in New Mexico and I want to know what the land is worth to determine if anything needs to be negotiated. Someone told me to ask for comps. I know you do this for homes but is the process the same for land? And if so, do I just ask the seller for comps for the area?
I am looking to buy some land in New Mexico and I want to know what the land is worth to determine if anything needs to be negotiated. Someone told me to ask for comps. I know you do this for homes but is the process the same for land? And if so, do I just ask the seller for comps for the area?
Thank you for you help.
Yes it is the exact same process. Can be much more difficult than for homes, but the same process. However I would not be asking the seller for comps! If you are unfamiliar with land sales find a realtor who is experienced in land sales in your area. Comps on land can be much more complicated to compare. Zoning requirments, legal access as well as physical access. If it is not a county road, don't assume because there is a dirt road going to the property that you can use it. Utlilties is a huge factor in land comps. Are utilites are the lot line, 500 ft, 1/2 mile etc. Huge cost difference involved when doing comps. Are you familiar with septic systems and perc test? What about water supply? Using well water? How deep does one need to drill in the different areas. In AZ we have a state website that I can look up information on every well in AZ. If I have a client interested in a particular parcel they can research the site and see how deep the adjacent properties had to drill, who drilled it, gpm etc. Flood plain ratings? Many things to consider.
Last edited by RickTucsonHomes; 07-03-2010 at 07:40 PM..
Thank you so much for the information. I have been doing so much research for the past few weeks before I travel there and there is just so much to learn and my head is spinning. I had heard of some of the things you mentioned above and some I had not. I did not realize all of these things effected the comps. I have noticed that in some of the properties I have picked out so far the seller is also real estate agent and/or developer. That is what I meant by ask the seller. They all seem to be the same person. Thanks again! Wonderful information!
Thank you so much for the information. I have been doing so much research for the past few weeks before I travel there and there is just so much to learn and my head is spinning. I had heard of some of the things you mentioned above and some I had not. I did not realize all of these things effected the comps. I have noticed that in some of the properties I have picked out so far the seller is also real estate agent and/or developer. That is what I meant by ask the seller. They all seem to be the same person. Thanks again! Wonderful information!
Sounds like you definately need your own buyers agent to assist you. It cost you nothing! Make sure you get an agent experienced in land transactions, and don't be afraid to just ask them how many land deals they have done. In what part of NM are you looking?
Sounds like you definately need your own buyers agent to assist you. It cost you nothing! Make sure you get an agent experienced in land transactions, and don't be afraid to just ask them how many land deals they have done. In what part of NM are you looking?
This is good advice, get a buyers agent. Don't get comps from the seller, here in Texas you can't get sold comps unless you use a Realtor (non-disclosure state) and those that try to can only get Tax Apraised values having nothing to do with market value.
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