Jeff Pearl Homes AR Blog: Land Has More Than One Value _ What's it Worth to You?

Land Has More Than One Value _ What's it Worth to You?

I was recenlty ask about a lot that a buyer is interested it buying. He wanted me to tell him how much it's worth and what he should offer.

 Well, it depends on who you ask. The Seller thinks it's worth $170,000.00. Supposedly an appraiser claims it's worth $160,000.00 but appraisal is over one year old. Tax man says it's worh $135,000.00. Potential buyer knows land and was thinking of offering $125,000.00.

 Lot is nothing special, and perc site is iffy and small and will need upgrading. Steep slopes on back of lot.

 I told buyer that the lot has different values for different buyers.

 If an investor wanted to buy it, it'd only worth $104,000.00 to him.

 If a builder wanted to buy it and build a spec house to sell, it might be worth $120,000.00 to him.

 If someone wanted to buy it, and build a house to live in, it would be worth $140,000.00 to him.

 If a neighbor wanted to buy it to expand their property, and to avoid having someone build a house next door that would crowd your lifestyle and view, it might be worth $150,000.00 or more to him.

So basically, what's it worth to you? It's worth whatever a certain buyer is willing to pay for it. So it could be worth anywhere from $104,000.00 to $170,000.00 depending on which buyer wants it the most.

 In cases like this, you have to decide if you're willing to lose a lot you really want over $5 to $10,000.00.

Get your offer in early ( cash if possible), and avoid useless contingencies like asking for a 90 day study period. Clean solid offer is best if you plan to offer $130,000.00 for a lot listed at $165,000.00. If you have cash, forget about appraisal contingency.

 

lot for sale

If you want a ready to build lot between Lovettsville and Leesburg VA, let me know. I have a 46= acre farm being developed with 2 lots ready to go. We will create a max of 7 lots out of this 46+ acres.

The original log farmhouse and log barn might become an addition to a new modern home, and will be on close to 20 acres. Currently in land use, so any lot over 5 acres can remain in land use so taxes are reduced. Frontage on 2 roads, nice views, pond.

Other lots available.

Use your builder or I can suggest some local quality builders.

 

Jeff Pearl

Remax Distinctive

703-727-4876

Homes | Land | Farms | Historic

www.jeffpearlhomes.com

 

 

Comment balloon 1 commentJeff Pearl • July 12 2016 10:24AM

Comments

One thing is for sure, they are not making anymore new land.  

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 2 years ago

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