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The first and foremost question is what is your land worth? In placing a value on vacant lots, acreage, or development parcels, it is important to know and understand what the highest and best use of the property is.
Once we can accurately determine a parcels highest and best use, which in some cases with larger acreage and development parcels might require preliminary engineering, and planning, we can usually determine value using two general methods.
A. Market Approach: Reviewing your property against sold, pending, current, and expired parcels within similar market conditions.
B. Cost Approach: This method is usually for larger, more complex development parcels. The basic idea is determining how the parcel would be developed within existing zoning, and sometimes future zoning of a parcel. We usually incorporate engineering, and surveying in this method to reach a preliminary or conceptual layout. Once we have a legitimate site plan, we estimate every cost of developing the project, then bring in the market approach.
We can then determine the gross value of the project less development cost, land cost, holding costs and selling costs. And eventually the project's feasibility in terms of profit.
The next step in selling your land is marketing.
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