How to Comp Vacant Land? (no MLS access)

Question

I have an infill lot that I am looking at in Waco, TX. It is in an up and coming area that is seeing a lot of new development and builds. The home prices in the are are a little all over the place due to the fact that it is gentrifying but I would say a builder could come in a build a 200-350k house.

They are asking 85k cash and I would end up assigning the contract to a developer if I were to lock it up.

My problem is, i'm not sure how to accurately pull comps for vacant lots and don't really know what price point I need to be at.

Matthew Bailey · Answer

@Blaine Alger

Yea I mean if it’s a one time thing it shouldn’t be a big deal.  You won’t be able to get by asking “what about this lot” over and over because investors are busy.  But if you’ve got a one time thing you can probably get their buying criteria.  Then go find deals that fit that and wholesale them off.

Blaine Alger · Answer

@Matthew Bailey

Good idea, Matthew. I will try looking at the new builds in the area. And why mess with comping my own deal when I can have  someone else do it, haha.

Blaine Alger · Answer

@Zivka Ljutic

Aww bummer, you should move to Waco and help me out. I have been checking out Zillow but haven’t had any luck pulling anything I feel confident about. But maybe I’ll give realtor a try. Thanks for the input

Matthew Bailey · Answer

@Blaine Alger

Hey Blane, go on Zillow, filter for only “new construction” bought/sold call all of those agents/developers/companies and ask them what they need to buy at to make their numbers work.

Zivka Ljutic · Answer

Hi Blaine!

As an appraiser....comparables are kind of my thing. Unfortunately I am in Chicago. Take a look at Realtor.com or even Zillow (appraisers hate Zillow) for land in Waco, Tx. You will be able to see what's available, pending or sold and get an idea of what's going on. Call a relative or friend with a license in TX, and if you don't know anyone, call up a local Realtor. They could take a quick look in the MLS for you. Don't forget to take utility availability and zoning into account - what can be where is often a big factor in land pricing. Good luck!