Hi, I am Beth with TB Properties Buys Land.
Today, I thought I would begin a series on what can influence the offer price on your vacant land property. There are many different things that can influence the price that someone’s willing to pay for your vacant land property.
The one influencer that I talk about the most is access to your property, and that includes both physical as well as legal access. We as purchasers want to make sure there’s a road in which you can physically get to your property, but what’s even more important is that it’s legal to get to your property too. For example, if there’s a private road going to the property, but you don’t have access to that private road, you could technically be trespassing by going across it. That could get you into legal trouble, or it could be very expensive in order for you to obtain legal access to your property in that manner. All right? Physically being able to get to your property is also very important. Not having legal access to your property can make or break whether a company like TB Properties buys land, is willing to purchase your property at all.
Another important thing that we’ll look at is access to utilities. Sometimes with vacant land properties, we’re looking for recreational property, which may mean that many people may not need to have power, or may not need to have a rural or community water line at their property. However, if someone is looking for their property to be something more than just recreational, perhaps being able to build on it, maybe for a retirement home or a cabin in the woods, having access to utilities allows your property to be more than just a single use. Multi-use means the land could be used for recreational but even residential as well. Depending on location, it could even be used as a commercial property. Who knows? Bottom line: having access to utilities can increase the value of your property, thereby increasing an offer price that’s made to you for your land.
Let’s get specific: what does that mean, having utilities? Perhaps there is a power line going across your property. Is there a meter that’s been installed on your property? Do remember that often there is a cost to getting bringing power to your property, especially if it requires boring under the road or going overhead, across the road to your property. There’s a cost in the installation of a meter at the property. Also remember that the larger, higher voltage lines overhead are not the same as the power lines that can serve our standard residential needs. Bottom line: if you have power at your property, especially if there is already a meter in place, there’s value there.
Water is another important utility that we want to look at. If your property is within or near city limits, do you have a city water line going to your property? If you’re outside of city limits, is there a water line from a local rural water co-op that goes to your property? Or does the county have a water line that extends to your property? The next question is: is the water line on your side of the road or is it across the road? Keep in mind that boring under the road can be super expensive. If there is a water line, has a meter already been installed? If you don’t have a water line going directly to your property but it is nearby, this does not necessarily mean it can be extended. Can that water line be extended? Is there sufficient water pressure to support extending the line? Do you have to pay for an engineering study to learn whether there is sufficient water pressure to allow extending the water line? Even if the water line ends at your neighbor’s property, there may not be sufficient water pressure to get to your property.
These may be considerations that land investors, or just willing property buyers may ask when considering buying your vacant land property. They’re going to want to know some of this. As we discussed, having utilities at your property can increase the value of your property, but you want to make sure that just having it nearby isn’t the only thing; it may not be usable!
Perhaps we already know that you don’t have a community water line to your property. The next thing we might ask is, how deep are the wells in your area? Knowing that there are wells that are shallow, say 50 feet deep, a hundred feet deep, versus 350 feet deep, there may be value. Or perhaps the area is known to have a higher flow rate. These may be features that can affect the value of your property.
We’re getting long here, so I will come back with additional video(s) and bring up some other things that may influence an offer price on your vacant land property.
If you are looking to sell your vacant land property, feel free to reach out to TB Properties Buys Land for a price. We purchase vacant land properties all over the country with cash, and we always close through a title company for safety on both sides, for you as a seller and we as a buyer. Thanks again for listening.