What's the best way to value a piece of residential real estate?

dustbusterz answered 10 months ago …

valuign a piece of property now should be a bit tricky cause you have seen properties inflatedover the years (which can give a false sense of worth) . but to begin with, you need all the information you can get on this piece of property. does it have a house? how many bedrooms? what is square footage? what neighborhood is it in? is it fenced yard? near a lake? what recent improvements have been done? what still needs to be done? what are schools and churches like near by? how close to shopping is it? anything you can ascertain. now go look at recently sold homes that closely match this one. thats your beginning. next, find out which way building is heading(perhaps its right in the path of an on coming building boom (which could make it a valuable piece of land to a builder.) . you should be spending a lot of effort on this Both at your local government office and at a reputable sales office to gather all this information.
Now , are their any liens on this? is the seller over extended on the home? why is he selling? if all your homework was done , you should now have a fairly close estimate of the value of this property by this point. depending on why the home is being sold, you might be in the cat bird seat , cause homes are not selling well right now and you can make a really low ball offer (which just might be accepted) .are there any building restrictions on the land? cause maybe you wish to build on this land. i had a friend who nearly bought a piece of land(had nothing on it but a garage) . just before making the offer, they found it could not be built (the garage was all that was allowed on this property) naturally, they wanted it for building a home on ,which they could not do so they passed on the purchase.