What dictates the value on vacant land?
As you can see the price expected by an owner is the last consideration to any purchaser and after evaluation of all the above factors a sale price can be agreed.
One of the biggest stumbling blocks for land owners when selling their property is the “future land use’ as many properties have local planning and zoning restrictions.
To change these restriction can cost time and money and is not always guaranteed. The demographics of the areas should be considered to determine if the future planned use of the property is a viable option before entering into a sale contract. For example a vacant land property with residential or agricultural use only in an area of residential communities would be difficult to change to commercial and vise versa.
Consideration all land owners should take into account is “time” Many developers will try and lock a property into contract while they investigate the planning and zoning change options and in many cases this can take months even years to complete before a sale is completed.
A ‘letter of intent” from a developer is a promise to pay a certain amount if a certain criteria is met to their approval and this will lock a property up until it is closed out. In many cases it ends up in nothing and the seller loses out with nothing but lost time while the property is taken off the market during the process.
My clients are advised not to accept “letters of intent” and only accept written contracts with non refundable deposits after the buyers initial due diligence period. I always advise my buyers to carry out their own due diligence prior to submitted a contract offer to save themselves time and money.
The planning and zoning departments of every county will give you the up to date information on future land uses and they will also advise of potential stumbling blocks with any proposals. Never give up as everything is negotiable and with the correct representation in planning and zoning applications these obstacles can be overcome.
I always direct buyers to the relevant departments in the county they are looking prior to submitting an offer. As I work in California and Florida here are some of the most popular area links worked in.
If you are the owner of a property and wish to have us evaluate it, for initial questions and answers please contact John McLoughlin directly on +1 310 918 4623.
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