Pricing vacant land

[Jose Diaz]

Hello everyone. I am interested in selling a piece of land that I bought many years ago. How specifically do i go about evaluating the land in order to set a sale price? The land is inside a non-developed community, however it does have some paved roads and some dirt roads.

Thank you

[Sean Pincus]

Couple things...

- Brokers Opinion of Price
- Find the Highest and Best Use for the land (Residential, Office, Retail, Etc) and back into the price based on what can be developed there.
- Find recently sold vacant lots in your area and base it on the comps.

If the highest and best use is for residential development... and you know that a finished house would sell for $XXX,XXX.XX then a typical developer would buy the land for 15 - 30% of the total development cost (land + soft cost + hard cost).