Land can be a tricky thing to price. Especially when land just exploded a couple of years ago. Man was there a frenzy in the Arizona market. Well now land has gone the other way. There is over 78 month's of inventory in the Prescott area. So with land price is the usual motivator. SO how do you price land.
CMA competitive market analysis is one way, that uses solds in the last six months.
But that is what everyone is doing. As the market seems to be falling I thought I would throw some things out there.
1. Price should start with a CMA. But with a detailed look. Days on market, date it sold. that sort of thing.
2. I really don't look at what other listings in the area are trying to sell there land for, Theirs is sitting too.
3. One of the easiest ways is to look at what the homes in the area are selling for. After all spec builders/investors are always looking. However they usually look in the 17&-25% land to home value.
So if land is priced at $100,000 for a lot and the lots aren't selling look at the homes that are selling around $300,000. If that is the case to move your lot in a reasonable amount of time your lot should be in the $51,000-$75,000 dollar range. I would recommend $72,000 if it is a easy build and has decent views. If it is a lot that needs a lot of prep work the price would be more in the $58,000. However this is just what I recommend.
In a great market where home prices are rising then sure you may be able to pull the $100,000 range out. That time is not now. If you want to sell your lot price it to sell.
Investors won't spend the money if it is over priced.
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