How do I run numbers for lots?

Question

I'm looking at a few lots in Baltimore Maryland but I'm not sure how to run numbers for them. Could someone help?

Ned Carey · Answer

Are the lots Buildable? There are many lots in the city which would not qualify as buildable, in some cases even if a building used to be present on the lot.

Land is valued based on what can be done with it. What can be done with the land? What will is cost to do that? How much profit will a developer expect in profit to get it there?

If there are comparable lots that sold nearby, use the comparables to estimate a value. Otherwise you ned to know the answers to the questions above.

Jay Hinrichs · Answer

@Briana Johnson  you can simply talk to new construction builders in the area.. if they are big enough they will have an acquisition person... in 10 minutes you will be able to figure out if the lots your looking at have any value other than to a neighbor.. if there is no spec building going on in the immediate area then the value is probably little to nothing.. unless their is a land assemble going on for some much larger development

Ned Carey · Answer

I honestly don't know, that is why I don't do land and why many other people don't do it. It can be hard to value. The good news is that means there is less competition. If you learn how to do land deals you have a valuable skill that few others have.

That said, I would call the zoning dept and see if they can help. You can find the zoning on SDAT and look up zoning codes online, but they are very difficult to understand.

Account Closed · Answer

Run numbers to do what?

Jay Hinrichs · Answer

@Ryland Taniguchi  Dream on Title rep on an attorney state  yeah right.. its shoe leather out there my friend.. We are so spoiled on the WEst coast as to not be in the same country when it comes to what our closing companies do for us.. compared to the East..

I just about fell out of my chair on that one. !~!!

Ryland Taniguchi · Answer

Find out from builders who the go to title rep is for new construction. That person would be happy to help you and should know the local market for land extremely well.

Briana Johnson · Answer

ok I can definitely try that. Thanks!

Briana Johnson · Answer

Ok sounds good! Thanks a mil Ned

Briana Johnson · Answer

Ok and how could I find out if the lots are buildable?

Briana Johnson · Answer

This is super helpful! Thanks Russell.

How do I run numbers for lots?

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