With real estate sales continuing to boom, people are looking at purchasing raw land. Many communities, such as Granbury, Tx continue to see massive growth, spurring an interest in land sales and development. With interest rates low and a resurgence in luxury real estate developments, we anticipate land prices to rise in the near future. In a changing real estate world, buying land can be challenging. Many people expect market dynamics for buying land to be the same as those of buying a home.
The difference between buying vacant land and searching for homes for sale:
1. Lot and Land buyers are different from home buyers since the two have very different desires perspectives and needs. Home buyers usually want to move in while land buyers could want to use the land for the business of personal uses e.g. use it as a farm land, build a home or as rental apartments.
2. Land requires different sale techniques. A piece of land with an already built home can tend to be more attracting to a customer than a vacant land.
3. The market for vacant land is less active than the market for homes. Simply, there are more home buyers than vacant land buyers.
4. Selling vacant land requires more patience than selling a house since nowadays people are too busy working, studying and traveling thus they prefer already made houses.
Lot and land dimensions
Lot and land sizes vary for different reasons
Hectares ha) – a hectare is a metric unit of square measure equal to 100 Ares. Its a non-SI unit, but its accepted for use with the SI units.
Acres (a) – its a unit of land area equal to 4840sq yards. Can be subdivided into halves, quarters and eighths.
Land frontage is the border or full length of the property that is along the road. Its considered important during the land buying process due to property tax payment and implementing the rules and regulations for the development of land.
Process of land pricing
When determining the price of a land be sold very many considerations should be put in place
1. Land location- the strategic position and geographical alignment of land are very crucial in land pricing. Pieces of land that are located in urban areas, very fertile lands, lands with minerals, lands near water bodies and those near tourist attraction sites, are examples of land that are more expensive than the vice verses.
2. Land size- an acre of land in a certain area cannot be priced the same as a hectare in that Particular area.
3. Land frontage- lands bordering roads and transport areas tend to be more expensive than lands far away from the transport systems e.g., Airports, ports, etc.
Developed land, land near roads and lands with housing and other structures are valued at approximately $106000 per acre while those that lie in undeveloped areas and areas without housing or structures, i.e. vacant land are valued at an estimate of $6500 per acre.
Lands to be used for farming and ranching are valued at approximately $2000.
Buying vacant land is less expensive than buying a home since when buying a home, the buyer pays for both the land and the structures present. The price of vacant land is approximately 21% of the entire price of buying a home.
If you are thinking of buying or selling land, we strongly recommend using a real estate agent to insure everything goes smoothly.