Comparison of price trends for various property types

[The Warrior Monk]

I'm interested in the comparison of vacant land with impeded utility, or different property rights, and if there is a difference in their long term price trends.

For example,

• Buildable land versus landlocked parcels; or
• Buildable land versus land with development rights sold.

Has anyone performed any type of market study indicating that price trends are different, and what where the results?

 

[murray stroupe]

Comparison of price trends

I'm interested in the comparison of vacant land with impeded utility, or different property rights, and if there is a difference in their long term price trends.

For example,

• Buildable land versus landlocked parcels; or
• Buildable land versus land with development rights sold.

Has anyone performed any type of market study indicating that price trends are different, and what where the results?

=================
David;
Hope this comes off as helpful & not overly simplistic.

Landlocked tracts have never been worth as much [long or short term] in TN compared to buildable parcels.

I was recently interested in a parcel, not land locked ,had access ,but no road frontage;
the experienced REALTOR suggested i pass on it, too hard to sell he said.

 

[appdyn]

David:

I believe there is a concept (and/or an article published in The Appraisal Journal) called "Bi-lateral Monopoly". Remembering from 15 years ago or so, the idea stated that there needs to be at least four 'bidders' for an 'economic good' for the bidding activity to create a 'market'.

With a land locked parcel, there may be only one or two possible bidders - the adjoining land owners (obviously could be more). Hence, the market is restricted in that there is only one seller (hence monopoly) and two buyers (bi).

Anyway, I think that's how it went. Google-ing Bi-lateral monopoly should give you some hits and insight.

Appdyn