From the video
If you are looking for a piece of land for sale in Florida and are just wondering how much it’s worth, then you need to find information about how to determine the value of land in Florida. In this blog post, you’ll read our best advice about how to do that…
What You Need To Know First About How To Determine Value Of Land In Florida
The very first thing you need to know is: it’s an art and a science. There are many factors that go into the valuation of land and there is never one single number that you can definitively say, “THIS is what land for sale in Florida is worth.”
So we’ll give you some of the factors below but be aware that when it comes to how to determine the value of land in Florida, you’re really looking at an approximate range.
Appraisers to Determine Value of Land for Sale in Florida
Hire an appraiser. This could be a costly approach and is used more frequently with home buyers than with land buyers.
You can hire a professional property appraiser to verify the value of the property you want to purchase.
The appraiser will put together a report using a couple of key metrics:
- Income – how much income will the property generate?
- Cost – what would it cost to recreate this property from the ground up?
- Sale Comparison – what are recent sales prices in the area?
You can see why a professional appraiser isn’t the best option for vacant land for sale in Florida – the income and cost metrics don’t apply! Unless a vacant lot is being rented out to a farmer, a hunter, or another creative use, it’s not generating any income. And it’s not common for Florida land to be rented out. So the income metric isn’t applied.
In regards to the cost metric, vacant land is … vacant. So there’s nothing to rebuild or recreate. Unless there’s some improvement like a fence, but that might not be enough of a cost to justify an appraiser using this metric.
The sales comparison is a great metric when it’s applicable. The problem is, comps for vacant land aren’t always readily available, so it can make comparisons difficult.
So, yes, you can hire a property appraiser, but if you’re looking just at vacant land, this might not be the best option for you (it certainly won’t be the cheapest).
Market Price Is One Way To Determine Value Of Land In Florida
Economists will tell you that the best way to know the value of your land (or anything) is to sell it. Price = what people are willing to pay. The market price that someone is willing to pay is the value of your land.
The best way to figure out the market price is to find some sales comparisons. Again, these might not be readily available, but if you’re willing to work for it you can find some. You could also try contact a local real estate agent (see below).
Of course, you might not be ready to sell (perhaps you’re just trying to see how much you can get for it) but certainly the most definitive answer you can get is how much someone is willing to buy your land for. But as you’ll soon see, there are other important factors as well…
Online Prices Shouldn’t Be A Way To Determine Value Of Land In Florida
When you’re thinking about valuing your property, one of the first places that many people look is at some websites that claim to give you the value. (Zillow, Redfin, and Realtor.com are examples but there are others.)
Use these numbers with caution! They are derived from a number of factors and should only be considered one piece of information in a much larger puzzle.
These numbers can be wrong by as much as 50% in some areas. That means you could be leaving a lot of money on the table! You definitely want to be careful if there are only a few listings. More listings are better because you’ll be able to pick out and remove outliers and just focus on the average pricing.
When looking at online prices or nearby properties, you want to consider the following features (if a property has some or all of these features, it can help increase the market value):
- Road access
- Utilities
- On water, or has water feature
- Regular shape
- Close to a town or city
Agent Market Valuations Are A Simple Way To Determine Value Of Land In Florida
Many real estate agents offer free market valuations to homeowners and land owners. So you may consider calling up an agent and asking for a market valuation. The agent will then look at data from similar properties that have sold recently in the area and they’ll use that as a way to help you determine the value of your land.
Again, it’s not a perfect number (since factors change) but it’s a good starting point if you are looking to understand pricing for land for sale in Florida.
Here’s The Most Important Way How To Determine Value Of Land In Florida
The best judge of the value, though, is YOU. Three people looking at the same piece of land will get very different valuations – if one is a farmer wondering how hard it will be to clear the land and grow a crop, and if another is an owner who wants to build a retirement home in the wooded area, and if a third is a property developer looking to divide up the land and develop a subdivision. Each one will value the land according to their needs.
So what do YOU see yourself using the land for? (And remember: value is not always a financial number but also includes the time, effort, and potential enjoyment you can get from the land).
Take this into consideration and use it in combination with the other methods mentioned above to help you get the best idea of value of land for sale in Florida! Good luck!
If you want to talk about land with us, we’d love to connect with you.
Click here to contact us about the property you want and we’ll get back to you quickly, or call us now at (313) 349-0434.
Want Your Own Florida Land Buying Guide? (complete with a list of things to check before you buy!)
You can get yourself it for free – just fill out the form below!