Land Value Calculators

What These Things Mean:

• LF (Location Factor) = 1.2: Imagine you have a map in hand for say Biloxi, MS. Some places on the map are super cool because they're close to the casinos or the beach. We give those places higher scores because more people want to be there. A score of 1.2 means it's a pretty good spot, not the best ever, but definitely good.

• SA (Size in Acres) = 5: Think of the land as a big pizza. This pizza is cut into 5 big slices (acres). Each slice is really, really big – like as big as your school playground!

• ZCF (Zoning Classification Factor) = 1.5: Zoning is like rules for what you can build on your land. If it's for houses (residential), it has certain rules; if it's for shops (commercial), it has other rules. This number tells us it's a really good place for building houses because it has a score of 1.5, which means it's even better than just okay.

• LUF (Land Use Factor) = 1.1: This is about how you're using the land right now and what you could do with it later. A score of 1.1 means you're doing something good with it, and there's a little room to do something even cooler later!

• AF (Accessibility Factor) = 1.2: This is like how easy it is to get to your land. If it's easy to reach by roads or bikes or walking, that's great! A score of 1.2 means it's pretty easy to get there, like having a secret shortcut to your friend's house.

• SFF (Special Features Factor) = 1.05: Imagine your land has a super cool treehouse or a secret pond with fish. That makes your land special! A score of 1.05 means there's something a little bit special about it.

• ALPA (Average Land Price per Acre) = $10,000: If you were to buy just one slice of your pizza land, it would cost $10,000. That's a lot of allowance!

Determining the Value of Your Land When Selling to Spec Investors or Builders

When it comes to selling land, especially to speculative (spec) investors or builders, understanding the true value of your property is crucial. These buyers are looking for opportunities where the land value aligns with their project goals and financial models. Here’s a concise guide on how to determine the value of your land and how to use "Sherita's Spec Builder Calculator" to get a quick estimate.

Understand the Basics

Spec investors and builders assess land based on its potential for future development. Factors influencing land value include location, size, zoning regulations, accessibility, and the local real estate market trends. A beachfront lot in Biloxi, MS, for instance, holds different potential compared to an inland parcel.

Key Factors to Consider

• Location: The adage "location, location, location" holds true. Proximity to amenities, desirable views, and neighborhood status significantly affect value.

• Zoning and Land Use: What can be built on the land? Residential, commercial, or mixed-use zoning dictates the project scope a builder or investor can undertake.

• Size and Shape: The physical characteristics of the land, such as total area and topography, impact development costs and possibilities.

• Accessibility and Infrastructure: Easy access to roads, utilities, and public services increases land attractiveness.

• Market Trends: Understanding current market conditions and future development plans in the area helps in setting a realistic price.

Using Sherita's Spec Builder Calculator

To streamline the valuation process, we’ve created the "Sherita's Spec Builder Calculator." This tool is designed to give you a preliminary estimate of your land's worth based on the projected sale price of the development.

Instructions for Use:

• Enter the Projected Home Sale Price: Input the total expected sale price of the developed property. For example, if you anticipate a home built on your land could sell for $1.2 million, input that amount.

• Select the Land Value Percentage: Choose an appropriate percentage that represents the land's portion of the overall project value. This typically ranges between 20% and 40%.

• Calculate: Press the "Calculate Land Value" button to see an estimate of your land’s value.

Example: If a 15,000 sq.ft. lot in Biloxi, MS, is part of a project with a home that will sell for $1.2 million, selecting a 20% land value percentage would estimate the land value at approximately $240,000.

Conclusion

While "Sherita's Spec Builder Calculator" offers a quick way to estimate land value, it's essential to conduct a thorough analysis, considering all factors and possibly consulting with real estate professionals. The calculator provides a starting point, but the final sale price will depend on negotiations, market conditions, and the unique attributes of your land.

Remember, the more informed you are about your land's potential and current market dynamics, the better positioned you'll be in discussions with spec investors or builders.