Look at Comparable Properties In Your Area
You can estimate land value by comparing to other similar land listings. Check to make sure your land and the land you’re comparing to has a similar acreage, utlities and road access, has similar features to the other land parcel, and is in very close proximity.
If you want to determine land values, it can be extremely useful to look at similar property values nearby. This is referred to as the ‘sales comparison approach’ in the real estate industry. This can often be done online, but don’t rule out visiting similar plots and talking to local landowners.
It’s good to start by checking for similar land parcels on the most well-known websites.
Zillow is a great resource for exploring property prices. If you’ve used the site before, you’ll know you can narrow your search using a range of filters.
Remember not to just look at current listings. Dig a little deeper and you’ll be able to find recent sales and historical valuations too.
Landwatch takes a slightly differenshowt approach to Zillow, as it specializes in more rural properties.
Again, you’ll have to filter out things like ranches and farms – but if your land is in a more rural setting, this is likely to be a good site to explore.
What To Look For On Property Listing Websites
Unfortunately, determining land values isn’t quite as simple as finding similar properties and matching the price. After all, the person who wants to sell the undeveloped land will have decided the price themselves.
As such, you should also look at how long the listings have been live. If you see an impressive price but also see that the land has been for sale for months (or sometimes even years) without selling, that could be a clue that the asking price is too high.
Also, remember that two similar-looking pieces of land could be significantly different based on work that’s been done under the surface, permits that have been granted – and other factors you may not notice at first glance.