Value of land vs. house

[Lauren Seeley]

Hi! My bf and I are looking to purchase a house to live in Boynon Beach, Florida. I currently own a condo that I would rent out full time. We found a house for ~$1.05MM that has an amazing 1/2 acre lot, pool and on a canal that leads into a lake  - but the house itself is small (1400 sq ft) and while it’s livable it does need a bit of work which we can do over time. Because the house is on the smaller size, it is about 762 price per sq ft which is almost double the average we’re seeing in that neighborhood with other houses that are NOT on the water and have half the size of the Lot. Other houses that are on that same canal and have 1/4 acre of land (1/2 the size of the land) are closer to 650 per square ft.  We are trying to assess how to factor the value of the land into that equation to see if it’s worth it or not to buy. Any help or guidance would be much appreciated!

Thanks,

Lauren