How do you check land appreciation over the years?

Question

I'm considering buying a piece of land to hold for a few years in hopes of selling once it's appreciated to a certain point. My question is what are some strategies or resources to look at for checking a towns' appreciation of its land?

The state is New Hampshire and it's up near the white mountains.

Anything you can throw my way in terms of thoughts or resources is greatly appreciated!!

Jonathan Ramos · Answer

Jared,

Land is tricky. every lot is very different in what is needed to make it developable.

Some questions I always ask is:

1. Are there utilities at the street? if so which ones water/sewer that value added. specially in NH

2. What is the topography of the lot? if sloppy that's a value negative for many developers unless there is a gorgeous view.

3. Are there wetlands? this sometimes breaks deals.

4. Are plans available?

5. Has the property been surveyed?

This list can really be long but its important to work with someone that has purchased land. Keep in mind many Realtors may not want to work with many land buyers as the commissions are very low. Typically Real estate agents will help you find land so that you can develop it and then take a percentage of the overall projected cost land+buld investment.

To wrap it up to valuate land all these constraints will determine value so accessed value is not accurate.

Good luck in your search and if you need assistance shoot me a PM.

Jared Chenel · Answer

Thanks for the info! I'll keep that in mind :)

Richard Dale-Mesaros · Answer

Comparable sales from the MLS and off-market sales via the town's records. Lots of things to consider when buying land, I have a great P+S clause that covers you for pretty much everything if you need it.......

Lamont Chen · Answer

@Jared Chenel

You can potentially look for comparative sales for lots sold in the area (if any). From time to time vacant lots will go on sale for builders or developers to pick up.