Developing raw land...

[Aaron R]

I just made an offer on 126 treed acres with a pond, paved road access and water and power.

Their are a lot of lake resorts in the area and would make a great campground with year around mobiles. It has great hunting on the property, but really limits what you can do.

Its close to a airport and about 20 miles from a big town.

Anyone ever known someone to do this? I love the outdoors and this is the first thing i think about. More ideas are more then welcome.

Or would selling it make more sense? Its right around 5k an acre.

[Jackie Patterson]

[You need to identify the highest and best use for the property, before you make an offer, knowing what its best use is establishes the value through comps and is the basis for making an offer]

Bill is right on with his advice. In addition you need to know how much of the property is buildable, are there any wetlands you would need to work around, what is the zoning, etc. Also be aware that there are a lot of upfront expenses in development including site plan, engineering, infrastructure, etc. If you're willing to pay $630,000 for the land, you're going to have to do a lot more than campsites to make any money.