Land comparables

[J Grant]

Not true, eye of the beholder. I have assumed a tear down will be razed but when I drive by someone is rehabbing the place, or it has been rehabbed. I have assumed what looks like a perfectly good house will continue as a house and then drive by and find the lot has been cleared.

Then you are not looking at teardowns, you are looking at dated houses that some buyers choose to renovate. We can not predict what each and every individual buyer is going to do , however when the majority of them do X, then X is the trend.

If it is evenly split, and have the buyers tear down and half rehab, then the prices should show that - the buyers are competing for the properties tell the story

 

[Sadie]

Then you are not looking at teardowns, you are looking at dated houses that some buyers choose to renovate. We can not predict what each and every individual buyer is going to do , however when the majority of them do X, then X is the trend.

If it is evenly split, and have the buyers tear down and half rehab, then the prices should show that - the buyers are competing for the properties tell the story

Advertised as teardown, looks like teardown in photos, priced as a teardown, but someone decides to rehab. And not a 'remodel', where they keep a tiny segment of the original.

 

[George Hatch]

If you have adequate sales of parcels that are currently vacant then there's no reason for a buyer to choose a parcel with a beater house on it. In this region its more common to see "sold for land value" sales with existing SFRs to involve parcels that have multi-family development potential.

 

[Joe Flacco]

There are usually no vacant lots in the same location or characteristics as the beater house. It could be in the same town or whatever but vacant land in highly developed areas are often not good lots. There are reasons why it hasn't been developed.

 

[Joe Flacco]

Building on vacant lots also have additional costs such as impact fees which can be waived when building on a year down lot.