Can anyone share their thoughts on value of land in King County?

[Aleksandr Shmidt]

There are all these run-down houses in the King County area. Many of them are in a great location. However, most of them want $1M for it but the only valuable thing on them is the land. 

Would anyone like to have a discussion on this? So we can all agree to the value of property in the outskirts of Seattle/Bellevue/Bothell/Lynnwood area? 

Much appreciated! 

All the best, 

Alex

[Michael Haas]

@Aleksandr Shmidt land can be tough to value accurately. Here's the process HouseHack Seattle goes through to evaluate land deals:

1. Zoning: What is the lot size, zoning, and ADU/DADU potential? How many units can be built on the property?

2. Topography & ECA: Is the lot steep, lots of trees, a river, wetlands, or other environmentally critical areas that will either increase the cost of development or make development impossible?

3. Access: What does the infrastructure look like (street access, water, power, sewer, etc). Can heavy machinery get in and out of the lot for building

4. HOA's / Title / Legislation: Are there any concerns here?

5. Comps: What would we build on the lot, and what is that type of home selling for IN A .5 MILE RADIUS OF THE SUBJECT PROPERTY. In King County neighborhoods and school districts dramatically influence the value, so if its more than a half mile away it may not be a great comp, and will need some adjustment.

6. Value the Land: This is a complex calculation that comes from the experience of multiple new construction and entitlement projects, but if you're getting started or wholesaling you can target spending 30% of the ARV of all completed structures on purchasing the land. That will give you a rough estimate of the value of the land to an investor/developer.

Hope this helps! Reach out to me anytime with questions or to connect.