Do you know the true value of your land in Chicago? It can be tough to determine the fair market value of a piece of land. In our latest post, we offer some ways to help you get a better idea of what your land is worth!
Determining an accurate value for your land can be difficult. You can look at what other pieces of land are selling for, but there are likely features of your land that make it unique.
Are there utilities running to the property? If not, the new owner will likely have to pay to have utilities made available before they are able to build. These costs can be factored into the value of your land.
From time to time, counties will impose assessments on property holders in an effort to raise funds for increased development. Things like utilities, new roads, and sidewalks can all come with a fee for local property owners. If there is an assessment balance on your property, the value will be lower than those properties that have assessments paid in full.
While being on a busy road can be great for commercial properties, the opposite is often true for single-family homes. Being on a busy street will typically decrease the property’s value. Other things like being a corner lot, larger than average lot, or the proximity to necessary amenities all play a factor in how much the property is worth.
The Dirt Itself
The quality of the soil can impact a property’s value as can the amount of foliage that will need to be removed for development. If the property is covered with bushes and trees the costs can be expensive to clean and will be reflected in the value of the property.
A good way to determine the value of your land in Chicago is to take a look at the most recent comparable sales. The pieces of land you are comparing yours too should be as similar as possible. For example, you can’t compare a lot along a creek with one surrounded by others lots just a few blocks over. You’ll want to focus on the most recent sales.
If there are big plans for your area, make sure to make this known when appealing to potential buyers. Investors will swarm at the chance to purchase a property in an up and coming area, where land values are likely to rise.
Show The Potential
If you decide to sell the land yourself or work with an agent, it’s important that you highlight the potential of the land. You can go so far as to create schematics of what could be developed on the land. Give potential buyers a vision so they see more than just a piece of dirt. Show them the highest and best use for the property. Let them know what’s possible as far as development and from a financial standpoint. Familiarize yourself with development costs so you can help answer your potential buyer’s questions about the lot.
Statistically, there is a smaller market for land than there is for residential properties. Finding the right buyer who can follow through and pay what you want, can be difficult to find. By choosing to sell your land directly to Chicago Home Buyers, you can be assured you will receive a great price, a fast closing, and the ability to reinvest your proceeds into another investment right away if you so choose. If your land isn’t doing anything for you, maybe its time you consider an alternate investment!