Wholesale Land?

Question

Wholesale Land?

Answer

Hi, land is usually analized by the sq. ft. or running foot. There are 43,560 sq. ft in an acre. You should be able to find lots and land for sale and sold on the MLS. You can always look in the local papaer and RE sale magazines as well. Commercial property looks at ytwo variables, the Sq. Ft. and the running foot along road frontage. In some areas, the running foot is also considered for water frontage of residential properties. Land needs to be valued at it's highest and best use, which generally begins with its zoning restrictions. Small areas are generally best suited for residential and should be viewed in that light for comps. There is a process that the land owner can go through to re-zone property. Identifying property that is zoned say for residential that can be re-zoned for commercial is a great way to add value to a property, but that's probably not where you are with this post. The mobile home can be a a matter of obsolescence, a funtion that causes the devaluing of real estate. The property might be worth much more if the MH were gone! The property has utilities available which is a plus. If you have a septic tank on the property you'll want that inspected and a perculation test to see what the capacity is for any new construction and the ability to utilize that system in new construction, generally with the health department (or they can point you to the right office) You might hav a well on the property. If so, you'll want that tested as well. The health department can tell you how to take a water sample. Stagnet wells often have problems. Pour a gallon of common bleach down the well head and wait the next day to take your sample. This will "shock" the well and provide a better test initially, but you'll want to test again in about a week to see if the well really has problems. Comparing comps on land is an art as well as a science. Your comps need to be similar in area. Excess land is worth less than that area required for it's utilization. In other words, if the county requires at least 5000 sq ft for a buildable residential lot, the highest vale is to the 5000 sq. ft required, excess land is a positive add, to a point. If it is common in the area that lots are 3 acres and you have 5 and a half, at some point some buyers may view the excess as a liability rather than an asset. There is more mowing, maintenance, perhaps fencing and tress to maintain. This is the art of assessing the value and while excess land is worth less, don't misunderstand, there is value, what that might be is in the eye of the beholder. At one acre, you're probably fine, but if it is the largest lot in the area, you might consider this aspect of valuation. Other elements that can effect residential land values are; yes, location. Proximity to amenities, shopping, schools etc. The economic desirability is influenced by the valuation of nearby homes. The lay of the land is very important. An area that is in a flood palin is obviously not as valauble. Drainage is a consideration. Mowability, having steep areas, gullys or other problem areas will cosat money to cure making the property similar to other comparables. Mature trees are a plus, you can add at least a grand for a large walnut tree. And, deduct for areas that need to be cleared to be utilized. Just some of the considerations in raw land valuations. Good luck, Bill

Answer

An abandoned mobile home may be a blessing on a vacant lot. Or it could be a curse? Things to check out: Were permits pulled and paid for? Were any impact fees applied? Are there any permit fees due Harris County? Are there any fines, code violations on record with the County, because of this mobile home? Are the taxes on the land inflated due to this abandoned mobile home being there? Are there any unpaid impact fees due? Is there a title available for this mobile home (can you contact the past owner of this mobile home, and have the title transferred over to you? - P.S. That's if Texas is a state where mobile homes are titled, like cars, boats, etc.). Can you get the home removed by reporting an abandoned, titled vehicle on your property (if you do buy it) by contacting the County or State Police? (Maybe they will send a wrecker to have it removed for free? As the wrecking company will then apply to the County or State, to put a lien on the mobile home, and the wrecking company can them obtain title, and then sell it to recover their hauling (towing) costs (and maybe much more! ???) Or will the new owner have to bear the cost and have to pay to have the mobile home removed? If you cannot obtain "title" from the prior owner who abandoned the MH, try contacting the State or County, to see if you can somehow apply for a title (do not know if this can be done in Texas?). Are there any public hook ups for this mobile home? (i.e., sewer, electric, water, cable, telephone) Are there any wells or septic tank dug (and if so, are there permits properly filed and paid for with the County)? Are any paid permits, impact fees, OK to be transferred to a new owner? So, there can be plenty of good things to go along with an abandoned mobile home on a vacant lot. Bad stuff possible also! (please do your homework!) If all permits are in order, and you cannot get a title to the mobile home. It is still possible to rent the mobile home for many years (I would consider consulting an attorney, who can answer some questions for you, such as, should I disclose there is no title on this MH to a tenant? (Also maybe contact a well seasoned real estate agent and an experienced property and casualty insurance professional)... Can I obtain insurance without title? Can my tenant obtain renter's insurance? Possible plenty of legal stuff to ponder, but a possible big payday, with potential "long lasting cash flow" to a new owner here! Also: you may get some good answers about obtaining title for this abandoned mobile home at you county clerk's office? Remember, proper information "rules here", so if you are armed with the correct info., you may be able to easily wholesale this for some nice profit! Soooooooooooooo! Good luck! Bob Dobbs Land Rescue League LLC

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Usually what I do is call a local Real Estate Agent in the area who has been around for at least 5 years. They have a pretty good idea of what land is worth and they can even look at past sales of land and what they sold for, which is essentially what you want to do. Find 5 different transactions of land that took place in the local area and average out the number to get a good idea of what the land may be worth. Also location and the potential people you plan on wholesaling it to should be considered as well. I'll give you an example, I almost wholesaled a piece of land that was about 20 minutes away from a couple of casinos and inevitably there was a lot of traffic that went by. That in itself made it more valuable. It was my plan to try and wholesale it to a local business. I never could find anybody to buy it though :(.

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I would contact the local County assessor and 1st ask what the assessed value that land is valued at, then I would ask for the comparable sales the last 90 days you can also go online and for a few bucks get information at http://www.homeinfomax.com/, that will provide you with comps. I hope this information helps you.

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Land is hard to comp using the mls because sometimes you do not have enough data for an area. I have generally got a ballpark idea of the value of land in an area by comparing (a) larger lots to smaller lots and (b) comparing the value of similar properties in different areas while keeping construction quality and costs in mind. Keep in mind that most buyers of land will be investors so you will not be able to sell it for the full value as calculated by my technique. I am sure there are better ways to do this but I have never actually invested in vacant land so I just do it to satisfy my personal curiosity about land values in the various areas of Phoenix.