Listing or selling price aside, have you ever been curious about the true value of a parcel of vacant land? It’s an imperative question as this will determine many other factors in your investment, such as how much you should offer, its future listing price, and ultimately, how much profit you’ll make.
As opposed to a property, vacant land is much trickier to value due to a multitude of reasons, including but not limited to the fact that it is not producing income and there are no upgrades or improvements. There is, however, a way to determine what’s called a “ballpark value” where you, as investor, can be at least reasonably comfortable. For example, the zoning of the property. What could the vacant land be used for? Is it suitable to build a home or commercial property?
Other factors to consider: access to roads, desirability, and nearness to conveniences. Another tactic you can try is examining the MLS to research similar listings to get an idea of the competition. You may also wish to contact a real estate agent or two and ask them for their own take on the land’s potential.
This update is by Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application.