Am I paying a High, Low or Fair Market price for my North Port lot?
- Square Footage
- Price Per Acre
- Wooded and Cleared Lots
- Heritage Trees
- Lot Location
- Watefront or inland?
- Zoning, Ordinances & Restrictions
Several Factors to Consider:
There can be a difference of more than a 1,900 Square Feet between lots that visually look the same. If you’re a buyer, don’t assume that all lots are a fixed 1/4, 1/2, or 3/4 Acre.
- 1/4 Acre = 10,890 Sq. Ft.
- 1 Acre = 43,560 Sq. Ft.
Square Footage information is easy to locate. Assuming that you’re comparing lots with equal characteristics, the Square Foot Price can tell you if you're at a high, low or fair market price. (When buying by the Acre, you'll compare price per Acre.)
SQUARE FOOT CALCULATIONS:
- Lot price divided by Square Footage = price per Sq. Ft.
- $ 14,000 (lot price)
- ÷ 10,890 (Square Footage - replace with actual sq. Ft.)
- Equals $1.29 per Sq. Ft. (price per Sq. Ft. rounded up)
PRICE PER ACRE EQUIVALENT
Even if you are only buying a partial Acre, the Price Per Acre is the quickest indication of whether you're paying a fair price. If you’re looking at a lot that shows an Acre Equivalent significantly higher than the other equal lots in the area, you need to find out if the price difference is justified. You might not necessarily reject the lot, but if you're thinking of buying the lot, you should understand what you're paying for.
- As a Sellers, you might realize that you either under or over-priced your lot compared to other similar lots.
- As a buyer, you might uncover a better opportunity.
SOLD DATA FOR COMPARISONS
The list below shows lots sold during the last 180-Days (as of article date), from a small geographic area.
CDOM = Cumulative Days on Market
LP = List Price
SP = Sold Price
BUYING RIGHT MATTERS!
As you can see, if you were looking to buy the lot that sold for $52,174 per Acre equivalent, you would easily know that you’re paying a premium. The buyer could be an adjacent property owner willing to pay a high price, so, I’m not judging the buyer’s decision. (Just using that area as an example.)
All of the other lots combined averaged an Acre price equivalent of $33,145.83.
That means the $52,174 is roughly a 36% premium versus the other lots.
As a Seller, are you able to justify the price? As a Buyer, are you able to justify paying a premium?
WOODED VERSUS CLEARED LOTS and Heritage Trees
There's a price involved in clearing a wooded lot and preparing it for building. Price also varies based on location. The cost can range from $3K to $10K for a 1/4 Acre depending on several factors.
If you're planning on selling a lot, you can make your lot more attractive by having the overgrowth cleared. This isn't same as lot clearing but it can help you sell faster.
In North Port, Heritage trees 30 inches and greater in diameter require additional consideration. We'll update this soon. Every city in Florida has ordinances regarding removing heritage trees, but tree diameter varies.
HOW TO COMPARE LOT PRICES:
- Compare available lots within your selected neighborhood by location, size, shape, wooded or cleared, inland or on the water
- Divide the prices of your chosen lots by the Square Footage to get the price per Square Foot
In many neighborhoods, you may have a wide-range of prices for Active lots. In areas with big price differences, you will also want to do a sales comparison which shows you what prices have actually been paid in the area. When you figure out the Sq. Ft. price, you’ll get a better picture of whether you’re buying within a reasonable price range (again, assuming lot charactaristics are the same.)
WATERFRONT OR INLAND PRICE DIFFERENCES:
In North Port FL, you have many options. You can buy a lot on a freshwater canal or a non-canal parcel. The difference in price in a given area can range widely as will a canal lot vs a non-canal lot. A freshwater canal lot can sell at a 20 -to- 25% price premium. In some instances, it may fetch a 50% premium and may be worth the additional money. Don't get carried away with that last number. Most canal lots will warrant a 20 -to- 25% premium over a non-canal lot in the same area.
If you have questions about selling your property (home, land, lots or commercial), or just have real estate related questions, call Scott (Broker Associate with Hunt Realty Group): BuySellNP.com Phone: 941-882-5494 Ext 701
ZONING, ORDINANCES AND OTHER RESTRICTIONS
Some areas may have restrictions. Check them. You can search for zoning, ordinance and usage restrictions based on the area you're interested in.
Link: North Port Ordinances
IF YOU'D LIKE ASSISTANCE, LET'S CONNECT
Using data is one of the best ways to show a Seller or a Buyer what a fair price looks like. We use data regularly. If you need help selling or buying,
CALL SCOTT NOW:
941-882-5494 Ext 701 - (Scott is a Broker Associate with Hunt Realty Group - He is a marketing and pricing geek!)
If you have questions about selling or buying property (home, land, lots or commercial), call Scott - Phone: 941-882-5494 Ext 701
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