How do I value the land on a property?

[Irais Torres]

Hello BP Friends!

I'm a licensed Realtor in IL and I am still in my first year so there are plenty of things I am still getting a hang of.

I love working with small multifamily investors here in Chicago and am always looking to get into

This is the deal: I am working with a cash buyer. He is looking for a 2-4 unit property and we have found a 4 unit in a great neighborhood!!! Tons of new construction on the same block and the after repair values are hovering around $650,000- 750,000 for 4 units. The thing is this property has a crack in the foundation and is now leaning towards one side. It does not have a basement so when we had the contractor look at it he determined it cannot be fixed and is basically a tear down.

What my buyer is asking me is to found how I can estimate the value of the land to determine how much we can offer. Can somebody please tell me how: I've gone to the County's Assessor's website but I think I'm missing something. Please help. See picture for reference. Thank you friends!!!

[Michael J.]

Hello,

In order to get an idea for the value of the land if it were vacant, look back at the previous sales of the properties being developed right around it and see how much those builders purchased that land for.  This will give you a baseline figure for what people are paying for vacant land.