land ?

Discussion in 'Environment' started by sam111, Feb 6, 2012.

  1. sam111
    Offline

    sam111 Member

    Joined:
    Jan 26, 2012
    Messages:
    73
    Thanks Received:
    1
    Trophy Points:
    6
    Ratings:
    +1
    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 ?
     
    Last edited: Feb 6, 2012
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,406
    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.
     
  3. sam111
    Offline

    sam111 Member

    Joined:
    Jan 26, 2012
    Messages:
    73
    Thanks Received:
    1
    Trophy Points:
    6
    Ratings:
    +1
    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?
     
    Last edited: Feb 6, 2012
  4. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,406
    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?
     
  5. sam111
    Offline

    sam111 Member

    Joined:
    Jan 26, 2012
    Messages:
    73
    Thanks Received:
    1
    Trophy Points:
    6
    Ratings:
    +1
    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???
     
    Last edited: Feb 6, 2012
  6. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,406
    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. :thup:
     
  7. sam111
    Offline

    sam111 Member

    Joined:
    Jan 26, 2012
    Messages:
    73
    Thanks Received:
    1
    Trophy Points:
    6
    Ratings:
    +1
    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...
     
    Last edited: Feb 7, 2012
  8. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,406
    If you're looking to create a statistical model, I hope you're good at calculus.

    Otherwise, just use Google.
     
  9. gallantwarrior
    Offline

    gallantwarrior Gold Member

    Joined:
    Jul 25, 2011
    Messages:
    18,812
    Thanks Received:
    3,619
    Trophy Points:
    260
    Location:
    So far in the boonies, I'm not on google street vi
    Ratings:
    +6,162
    Land is worth what someone will pay for it.
     
  10. sam111
    Offline

    sam111 Member

    Joined:
    Jan 26, 2012
    Messages:
    73
    Thanks Received:
    1
    Trophy Points:
    6
    Ratings:
    +1
    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
     
    Last edited: Feb 7, 2012

Share This Page