land ?

[sam111]

I am wondering
How real estate or other people in charge of setting the price of land determine what the price should be.

For instance in Wyoming you can by tons of acres of land for very cheap,... but compare to other states the land per acres is really expensive.

I know how contractors / building construction guys set their price and mathematically their is a formula based on the materials used and how much of what material is being used. Fairly simple math to find what the approx cost of the raw materials.
Then usually the time and effort is a certain additional percentage which you can also calculate what is fair price.
Same with auto mechanics parts + labor which is a pretty easy thing to calculate if you took the time to add what the average cost of the parts are to get a ball park figure/fair price.

However when it comes to buying land their is tons of factors that usually are based on peoples likes and dis-likes. For instance usually land close to water is expensive ocean more so. But in theory if you don't like being buy water these prices would seem stupid to be high.
Another factor is human population if you like being by a city type atmosphere then you would pay more for that type of land...etc.

So I guess what I am asking is their a mathematical way to figure out how much a certain piece of land should cost given its latitude / longitudinal and other resources/commodities it posses's . Their should be away to determine what a fair prices is or the government could just say it is tons of money. When really it should be no more then the land they offered a few months ago in another state....
i.e it could have the same soil, size , everything could be equal but price could be much different ?

 

[Mr. H.]

The government shouldn't say shit about the value of private property.

Regarding farmland values- they are overinflated for two reasons:
-the outragous price of grains, thanks to massive exports, and
-government subsidies.

Farmers buy more land because it makes them more mailbox money.
Then they proceed to pollute the topsoil and aquifers with chemicals.

And we kiss their asses for it.

 

[sam111]

But who makes up the prices and how can we know what is a fair price on land and what is not. For instance given latitudes and longitudinals / area in a part of the world. How is the price determined for that particular spot.

Is it like if has so much water around it or with a certain mileage then it is X dollars more.
If it has soil that is x amount rich in x then it cost X dollars more.
If it is near x number of people it is worth x more dollars ...etc

I would think economists , geologists , ...etc a whole bunch of people would have to analysis it and set a price.
But then how can a buyer verify that this number they came to is a correct/fair price?

Who is responsible for setting the price and how are they figuring it out.

Also how negotiable is a price usually on land?

 

[Mr. H.]

Those are good questions, and in a way you've answered them yourself.

Every transaction is negotiable. Even in Las Vegas.

Are you looking for prime retail space on Rodeo Drive, or a desolate barren hilltop in the Kamchatka Peninsula?

 

[sam111]

well, I answered how a bunch of people could come up with a way to find a reasonable price for land.

But I was wondering if it is made into a formula or method that can be applied universally
so that given a land areas longitudinal/latitude coordinates and land factors come out with a simple calculation to compute a rough estimate.
This would free up some people from having to think up a reasonable price based on their beliefs. And also would give economists , political people a way to analysis the population , as well as regulate some stuff

This would one allow the buyer of land to be sure that the price is reasonable and two it would make it quick for the sellers to know how much they can expect for it when marketing/advertising.

A part from having sentimental issues on a piece of land is their a formula?

Question 2)
If the answer to the above is NO a whole bunch of trained people get together and make it up with no frame of reference of it's worth. Then who gets this responsibility to make the cost up of the land???

 

[Mr. H.]

You've got the makings for a good socio-economic-demographic-geo-political mapping project.

But these are variables that are in constant flux (change).

You could start by identifying current values based on physical coordinates. Those are (currently) fixed values.

Where you take it from there is up to you.

Good luck.

 

[sam111]

Ok, I think I have away of at least getting a good approximation to the changing factors. ( or at least model a formula after then provided)

Provided their is any easy way to look up the land prices for sold house.

Question
Does anybody know if their is an "EASY SITE" to look up the prices of a piece of land by typing in state , city , town info and it pops out the prices of the land per house or per address?

If not then their really wouldn't be an easy way to gather enough data to come up with a formula for each of these factors. I agree analysising it per city in one state first then move to another state ...etc gathering enough info on the cost of the land , location/resources it has...etc would put me at a really good position to come up with away to compute these things... or at least get an approximation.

Wondering does anybody know of a site. Maybe some Realtors could provide some help here.
Since their are sites on the internet that realtors advertise their house... maybe their is one for land? Maybe...

 

[Mr. H.]

If you're looking to create a statistical model, I hope you're good at calculus.

Otherwise, just use Google.

 

[gallantwarrior]

Land is worth what someone will pay for it.

 

[sam111]

Land is worth what someone will pay for it.

Obviously

But getting an approximate price to set it at first would be nice.

If I went to my auto mechanic and asked him how much would it be to fix my break pads and rotors.
And he said how much would you pay?
Most people would look at him like WTF.

I would say how about you do it for free. And I will give you a tip maybe lol

The point being is their should be some approximate standard/ball park figure in most cases.
With out this chaos could always have a potential to rise when it comes to pricing

 

[Mr. H.]

Realtors are like auto mechanics.

Local.

If you're looking at locaizing land or individual property values base upon specific points on the globe then heed my previous post.

Otherwise, just Google your problem.

 

[theliq]

Land is worth what someone will pay for it.

Obviously

But getting an approximate price to set it at first would be nice.

If I went to my auto mechanic and asked him how much would it be to fix my break pads and rotors.
And he said how much would you pay?
Most people would look at him like WTF.

I would say how about you do it for free. And I will give you a tip maybe lol

The point being is their should be some approximate standard/ball park figure in most cases.
With out this chaos could always have a potential to rise when it comes to pricing

SAM,amongst other things,I am a Real Estate Agent,your query regarding the pricing of Land and the determinates to get a Price Summation are as follows here in Australia,I'm sure it's similar in the United States.

Gallant is correct in his post but it is much more complicated,the bottom line is that it all a question of Supply and Demand moreover Real Estate purchases are often made on Emotion which is impossible to quantify.

Saying that there are many factors to arrive at a Summation of Price, but here goes.

I assume YOU were talking about Rural Land,Most R/E/Agents,compare to Land which has SOLD close by in the past and add on a % but this system is kindly a reciepe for disaster often the R/E/A has NOT DONE DUE DILLIGENCE.......if a mistake is made,it could cost the Agent BIGTIME.

You must find out what the Land can be used for,for a start.....many States have restrictions to the use of the Land,can animals be put on the Land,what type etc,.

Do you pay Land Tax each year to the State?,What are the owners of the Land responsibilies regarding the fences on the boundry line.......what type of fence moreover what is the quality of the Land and its soil types(on a large parcel of land,this can vary greatly).Is it succeptable to flooding,are there drainage concerns that have to be corrected???????.Is it in a Hurricane path.

Can the Land be Sub-Divided to enable the owner to promote and sell Hobby Farms,is it zoned for such,what are the requirements if the owner can Sub-Divide,the type and quality of the roads to the blocks,what is required regarding water,power,sewerage and telecommunications????????

Is there a river or watershed on the property,what responsibility regarding chemicals etc., allowed to be used.Is the boundry in the correct place!!!!!!!!!!!!!Can the Land be used by ajoining Neibours??????

I could go on and on but I think you get the general drift.........noting that,local councils,the state and often Federal Government have certain Laws and Statutes regarding LAND.

I have done many Land Developments over the years...but to answer your question.

Yes to get a proper Price Summation there are many AND VARIED REASONS TO COME TO THE PRICE SUMMATION......AND NOT FOR THE FAINT HEARTED....i may add.

Trust some of this helps......by the way it's a Great Industry to get into,you should try it......there is also great wealth to be made.....the down side is that there are a lot of EGOTIST but most are hardworking,interesting folk...Regards Sam,.....steven AKA theliq

 

[editec]

I am wondering
How real estate or other people in charge of setting the price of land determine what the price should be.

For instance in Wyoming you can by tons of acres of land for very cheap,... but compare to other states the land per acres is really expensive.

I know how contractors / building construction guys set their price and mathematically their is a formula based on the materials used and how much of what material is being used. Fairly simple math to find what the approx cost of the raw materials.
Then usually the time and effort is a certain additional percentage which you can also calculate what is fair price.
Same with auto mechanics parts + labor which is a pretty easy thing to calculate if you took the time to add what the average cost of the parts are to get a ball park figure/fair price.

However when it comes to buying land their is tons of factors that usually are based on peoples likes and dis-likes. For instance usually land close to water is expensive ocean more so. But in theory if you don't like being buy water these prices would seem stupid to be high.
Another factor is human population if you like being by a city type atmosphere then you would pay more for that type of land...etc.

So I guess what I am asking is their a mathematical way to figure out how much a certain piece of land should cost given its latitude / longitudinal and other resources/commodities it posses's . Their should be away to determine what a fair prices is or the government could just say it is tons of money. When really it should be no more then the land they offered a few months ago in another state....
i.e it could have the same soil, size , everything could be equal but price could be much different ?

Real estate appraisal is an art, not a science.

Basically one looks for comparable properties (aka "comps") that have been sold and start from that price, changing it as differences either add or decrease its value.

Of course, often FINDING COMPS can often be quite impossible.

 

[chenchenPeter]

I can help you ...Of course ...I love your article....HAH .