How do you figure the price on a larger lot? For instance I own a home on an 11,000 sq ft lot while homes sold recently are on 3-5,000 lots? What is the range of the price difference?

Thanks.

I would look for any sale comps of lots only than $/sf adjust for size. If no lot comps are available than I look at the tax assessors split on taxes with that value and find the $/SF for adjustment to compare too. Look for and find any trends in price strata as lot size increases. Location of lot on street or corner or cul-de-sac, golf, lake, creek are also adjusted as required.

A couple of thoughts...

First, a larger-than-average lot may not carry a lot of true "value" that you can account for on paper - but it will offer a significant appeal-factor to the market. In other words, the home will sell quicker, at "full" price, instead of a 90-day sale with lots of negotiation. Not knowing the specifics of your market, I would say to price the home at the top of its range (without accounting for the lot, and assuming it's in good condition otherwise) and maybe add a few bucks on top of that.

You could also call a local appraiser and ask how they would handle it.

Thanks, great input.

We do it by the square foot method of valuation.

First, find the asessed value of the land and then the asessed value of the actual buildings. Determine what the percentage breakdown is between them.

For example purposes, let's say the land is asessed at 20,000 and the buildings are asessed at 80,000 - 20% of your value is in the land, in that particular neighborhood.

Then do your regular CMA lookups, and take 20% of the sold or active price and then divide that by the number of square feet in the property- you now have the value per square foot of your comparison property.

Do your regular CMA as though the lots were the same size, and then, for example, if your comparison property had 10,000 square feet, and your listing property has 15,000 square feet, ADD 5,000 times your square foot price to the value of your listing property.

It's a lot of math, but if I've described it right, you should be in the ballpark. I've had success doing this in the past. It also works if you have a larger than normal house.