Selling a tract of land is not that much different from selling a house. The first step is to decide the asking price. To come up with the fair market value for your property, like any real estate agent, you're going to have to do a bit of leg work. Land value, like home value, is largely determined in comparison to other similar properties. By researching the market and investigating recent land sales in your area, you can determine a close approximation for the value of your land. However, it is still advisable to consult a real estate agent in case there are any factors you failed to consider. In hopes that you will use them as the selling agent, most land brokers will perform this service for free.
- Skill level:
Research the market. Get an idea of what similar properties have sold for or are selling for in your area. Good comparison properties are those that are currently listed or have been sold within the last year (two years if the market is slow), and those that share many similar qualities with your land (location, topographical features, etc.). To make a sound comparison, you will need a minimum of 10 properties. Your local district courthouse will have the selling prices on file, or look at listing prices on land listing search engines like land.net, landbluebook.com or landandfarm.com.
Break all of the selling prices that you have found to a per acre/square-foot price. Simply divide the selling price by the number of acres or square feet of the property.
Average all of those prices together. To take an average, add all of the figures that you have and then divide them by the total number of figures.
Multiply the per acre/square-foot average times the number of acres or square feet in your own property. This, roughly, will represent the value of your land.
Take market shifts into consideration. Put the per acre/square-foot selling prices that you have gathered in order of the date that they were sold. Have selling prices gone up or down over time? Adjust your rough valuation accordingly. In stronger markets, the value of your land will likely be higher than the figure you came up with through Step 4. In weaker markets, less. However, that will be as close an approximation as you can come to without the help of a real estate agent who knows more about market fluctuation.
Contact a land broker to determine a more concrete figure. As experts in the field, they can provide a more accurate land value by factoring in possible utility, limitations on land use and other factors that contribute to land value.
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