Splitting off flag lot, help with pricing

[Larry Flanagan]

I just bought 2 acres with a house on it and I can split off a 1 acre flag lot to sell as a single family lot.  There are no sale comps of flag lots to look at.  Nearby, 8,000 - 9,000 sf lots in a typical subdivision are selling for $50-$60k and builders are putting up $200-250k houses on them.  My lot is 5x the size but a buyer will have to extend water, electric, and a driveway about 300' and install a septic tank.  Do you think the large size offsets the development costs?  Do you think my lot should be worth more, less, or the same as a typical neighborhood lot?