05-09-2011 07:27 AM
Hey there, I would appreciate the advice of any experienced real estate professional on this forum. Here's my question: how can I calculate the average price per square foot of the dirt (without the home) in my neighborhood? I've been talking to a neighbor about purchasing a small plot of land adjacent to my home and I was interested in giving him a comp for unimproved land in our neighborhood. From what I can gather, the only price-per-square-foot info I can find includes the price of the house. So in my neighborhood, that is about $400 per sq ft. I would imagine that the price of the land without the house should be about a quarter of that. Can anyone provide me with some guidelines for calculating price per square foot of unimproved land? Thanks!
05-09-2011 08:52 AM
Look at comparable sales and back out the replacement cost of the structure. You should come up with range for ppsf for land that reflects only location differences.