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 ?