How do you smart folks evaluate land?

Question

Hello and thanks for the help!

First post here.

Summary: My brother lives in another state and he just had an offer accepted. This will be his families primary residence. It is waterfront. My brother and I are close. The house he bought has two lots (on either side of him) that will be listed soon. Both waterfront. I have over 2M in stock market and zero debt (no mortgage, income is variable but around 80-200k per year). I am considering buying one of the lots adjacent to his new home and eventually building a vacation home here. I could rent out this house when not there but mostly this would be a consumption item. I love to fish and It would be really cool to be able to visit my brother and stay in a house right next door. BBQ while looking at the water, fish from our backyard etc.

Questions:

1. How do you determine the correct price for land?

2. what questions would ask?

Thanks!

Tommy Burch · Answer

Thanks!!!

Ronald Allen Barney · Answer

Look at other empty waterfront lot listings in that area to get a feel for what price land is commanding per acre.  Some modifiers and gotchas are:  are there environmental restrictions against building or improving the land?  Is the soil suitable for septic and a well, or does it have city water and sewer?  Is power available at the street or would you have to pay to have power run out a long distance to the land?  Get all those angles figured out to make sure first you really want it and then do your "land comps".