HIGH, LOW OR FAIR MARKET PRICE FOR YOUR LOT?

The price of a land Lot is often misunderstood by sellers, buyers and many real estate agents. There are several factors that should be considered when setting the price of your Lot. When determining price, the asborption rate, demand ratios, price per acre or square footage, location and Lot charactaristics are important factors. Is the Lot in its natural condition or has it gone through site preperation for development? Many factors go into calculating an accurate Lot price. The local absorption rate and demand ratios for your area will give you precise price positioning for how fast you can expect to be in contract for the subject Lot.

We're using North Port for reference but the same information applies to Englewood, Punta Gorda, Port Charlotte, The Barrier Islands, and anywhere else that you may want to sell or buy Lots. (Scott works in numerous cities and counties. If you have any real estate related questions, call Scott:  941-882-5494 Ext 701)

• Price Per Acre
• Square Footage Price
• Wooded and Cleared Lots
• Heritage Trees
• Lot Location
• NORTH PORT AREA VIDEO OF A LOT FOR SALE
• Watefront or inland?
• SCRUB-JAYS, GOPHERS TORTOISES AND OTHER PROTECTED SPECIES
• SCRUB-JAYS IN 10 YEARS
• Zoning, Ordinances & Restrictions
• WHERE WE WORK

PRICE PER ACRE FOR SELLERS:

When determining your best list price, you should factor in how many sales there are in your area per month vs how many Active listings you will be competing againt for the buyer's attention. If you want to understand how your acreage, Lot, house or other property fits into the market, you will also need to know the demand ratios for your area.

Essentially, Demand Ratios measure the urgency that a buyer feels like they need to make a purchase decision. It's like measuring the fear of missing out. The greater the fear of missing out, the higher you can set your listing price within your range.

Demand Ratios tend to be much stronger for people looking to buy houses than it is for people buying acreage and Lots. Knowing this ratio separates you from 95% of the sellers. Putting the Demand Ratios together with information from the Absorption Rate will pinpoint your best listing price. No guessing involved!

The Price Per Acre is the quickest indication of whether you are listing your Lot or acreage within the typical range for your area. Your property might have certain characteristics that warrant a higher price point. If it's valid, the description of your property needs to highlight the features. Setting your listing price at the top of the range may be justified.

We're using North Port Florida for example purposes.

PRICE PER ACRE ON THE BUY SIDE:

Even if you are buying less than an acre, the Price Per Acre is the quickest indication of whether you are paying a fair price. You might not necessarily reject the Lot even if the price seems high compared to other lots, but you should understand what you're paying for. If the price is high, figure out if the property has a unique feature that other lower priced Lots or acreage lack.

SQUARE FOOTAGE:

There can be a difference of more than 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:

1. Lot price divided by Square Footage = price per Sq. Ft.
2. $ 35,000 (Lot price)
3. ÷ 10,890 (Replace with actual square footage)
4. Equals $3.21 per Sq. Ft. (price per Sq. Ft.)

• As a seller, you might realize that you have either under or over-priced your Lot compared to other similar Lots. Don't get carried away with exact Square Footage comparisons. On Lots, you are looking for a big difference in size, not necessarily a few hunders Sq. Ft. The same applies proportionately to Acreage.


• As a buyer, you might uncover a better opportunity.

SOLD DATA FOR COMPARISONS

The list below shows the highest prices paid for Lots sold during a 60-Day period in North Port zip code 34291

SP / SqFt = Sold Price per Square Foot

BUYING RIGHT MATTERS!

By comparing the price per acre, you will easily know if you’re paying a premium. The Lot might be worth the premium but knowing why you're paying a premium will go a long way toward making a good purchase decision. When you're ready to sell, paying the right price can make the difference between a profit, breaking even or taking a loss.

As a Seller, understanding how you are pricing your lot will help set expecations as to how long it will take to sell. As a Buyer, are you able to justify paying a premium?

WOODED VERSUS CLEARED LOTS and Heritage Trees

There is a price involved in clearing a wooded Lot and preparing it for building. If you are planning on selling, you can make your Lot more attractive by having the overgrowth cleared. This isn't the same as clearing a Lot but it can help you sell faster.

HERITAGE TREES

In North Port and other Florida cities, Heritage trees that are 30 inches and greater in diameter require additional consideration. When clearing a Lot with heritage trees, the cost is greater. Every city in Florida has ordinances regarding removing heritage trees but tree diameter varies.

HOW TO COMPARE LOT PRICES:

1. Compare available Lots within your selected neighborhood by location, size, shape, wooded or cleared, inland or on the water
2. The size of a Lot is a factor but many other considerations can make one Lot worth more than another larger size Lot.
3. If the price per acre or square foot is not automatically computed for you online, you can figure out the price yourself by dividing the price of the Lot by the Square Footage.
4. If you are buying or selling a Lot or Lots, we highly recommended that you consult with a real estate professional who can help you understand the variables of selling or buying Lots.

LOT LOCATION

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 or the price per acre, you will have a better picture of whether you’re buying within a reasonable price range (assuming Lot charactaristics are the same.) Price varies based on location and Lot characteristics.

Video of a North Port Lot for sale showing strong area development:

WATERFRONT OR INLAND PRICE DIFFERENCES:

In North Port FL and surrounding cities, 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.

SCRUB-JAYS, GOPHERS TORTOISES AND OTHER PROTECTED SPECIES:

Under the Endangered Species Act, Scrub-Jays and Gopher Tortoises are protected in North Port and surrounding cities. The permitting and rehoming of a Gopher Tortoise is not that expensive. The mitigation of a Scrub-Jays Lot can be time consuming and expensive. If you want more information, call Scott or read the article about Scrub Jay Lots (link at bottom of the page).

THE FUTURE OF SCRUB-JAYS

It was reported on 09/30/2021 by The Herald Tribune that according to Elizabeth Landrum, an authority on Scrub-Jays with the U.S. Fish and Wildlife Service, Scrub-Jays are aging out and they are not reproducing. According to Landrum, in a matter of time, you won't have scrub-jays in North Port. They will all be gone. Landrum stated that it’s just a matter of how long it takes for them to die off. While unfortunate, that is going to be the outcome per Landrum.

Florida scrub-jays are considered a threatened species by both the Florida Fish and Wildlife Conservation Commission and the U.S. Fish and Wildlife Service and are listed as “vulnerable to extinction” by the International Union for Conservation of Nature.

LINK: Buying and Selling Scrub Jay Lots

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 have questions about selling your property (Home, Land, Lots or Commercial), or just have real estate related questions, call Scott (Broker of SunQuest Real Estate): sunquestnow.com
  Phone: 941-882-5494 Ext 701

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SUGGESTED READING:

• THE GREAT NORTH PORT FLORIDA LAND GRAB
• SELLING AND BUYING SCRUB-JAY LOTS
• CAN YOU CALL IT A BEDROOM?
• ABSORPTION RATE: THE MISSING
  LINK TO PRICING RIGHT!
• 8 Simple Steps to help your house sell