Many property owners are looking at the current market and realizing their land could be worth a pretty penny. If you’re one of these people, asking yourself, ‘how much should I sell my land for?’ you’re not alone. Unfortunately, many people make poor deals or don’t research thoroughly enough and end up accepting a lower price than they should: here’s how to know the value of your property.
How Rural is Your Land?
Where is your land? Are you within a few miles of a major city, or is your property hours out from any location with a large population? The more rural your land is, the lower its property value will often be. In Texas, a piece of rural property will have a far lower value. Although the property value statewide has increased by six percent between 2019 and 2020, that doesn’t mean you’ll see your property skyrocketing in value if you’re hundreds of miles from a large city. When considering ‘how much should I sell my land for,’ you should pay attention to what the surrounding properties are valued at.
How Much Land Do You Have?
The more land you have, the more valuable your property will be. Although people will ask themselves dozens of questions, like ‘what is my land worth today?’, ‘how much should I sell my hand for?’ and others- they forget to consider that not all land is the same. The size and acreage of your property will quickly change the value of it.
If your property is smaller and you want to increase the value easily, try to purchase nearby property for cheap. This will free you to sell your land for more money and possibly make a larger profit. It’s a good idea to crunch the numbers before you make this purchase and ensure that you’re making the right decision.
Avoid Using Online Pricing Sites
Although sites like Zillow will advertise themselves as being able to price any property, it’s easy enough to type in an address to check: these sites are often wrong. In some rural areas, places like Zillow got the property value wrong 50% of the time. That’s a large number of errors in a field that could mean under listing your property by hundreds of thousands of dollars. Although you can look at this price to consider it a jumping-off point: don’t list at this price unless you have no other options.
What Utility Does the Property Have?
When selling, it’s a good idea to consider what utility your property has. For example, is it a lot of flatlands that would be great for developing industrial buildings, or is the land fertile and good for farming? Are there any water features that could be put to use? Although you may think property only has one value, the truth is the value will shift based on who’s possibly trying to buy it.
What Is Happening In the Land Around It?
Do you notice developments are popping up in your area? Is a new industry heading into your zip code? How much are the other properties selling for? A piece of property can be worth more if there are signs of industrial growth in the area. Don’t rule out the classic sellers you would normally sell to! Although a burgeoning industry can up your property value if other buyers are willing to pay your asking price, sell to them. People research how to find out how much land is worth so that they can sell, so ensure you sell when the right customer comes along.
What Type of Market Are You In?
The country has been locked in a sellers’ market for the last year. This market ensures that there are more buyers than property available and that you can ask for higher prices and quicker sales. Unfortunately, the market won’t stay that way forever. Although your property may have been worth a few hundred thousand dollars a couple of years ago, if the area falls into a buyers’ market, you could see that value drop quickly, and you may have to struggle to get a deal that will make you happy. If you’re considering selling and already in a sellers’ market, your property is at its best value.
There’s No Cut and Dry Answer
Although it would be great to type in your address and find the right answer simply: there’s no cut and dry answer for how much your property is worth. The value changes based on who’s trying to buy it, what perceived value it has, and how much possibility is packed into it. Calculating all of this, and looking at similar properties in your area, could set you up for success!