I want to know how do I put a value on a lot that has a house, but the house needs to be torn down and replaced.
The Lot is close to NDSU in Fargo, ND. The lot size is 50 X 140. I don't know what the city will allow for coverage, but a lot of other houses have been replaced with multiplex apartments for the college kids. So the scope of work is demo an old 480 sq ft house built in 1920 and replace with a new construction with off street parking.
Can any one tell me what the value should be of the lot currently?
whats does a building lot in a subdivision go for?
@Casey Twedt It's not quite that easy. Start here:
- What is the zoning
- What lot coverage will be allowed (set backs from neighboring properties, etc.)
- What will be required for parking (number of spaces per sq. ft.)
- What will it cost to tear down and haul off current building
Once you know what the zoning is, and what might be built there, you will have a better idea of what the value is. But, if you don't know how to figure out how much space can go on the lot, you would need to talk to a civil engineer, or someone to help you with that. It's all about highest and best use.
Check comparable properties in the area. Not many lots sell in that area but during our flip this summer we had to debate if we would tear down or what. Regardless, I think a good sized lot in that area will go quite high the closer it is to college. Whats the price you can purchase at right now?
This area is zoned downtown mixed-use, I believe the set back is 10 ft. It looks like the lots that are on the same block to the south a little have been changed into multiplex buildings with little green space left, one has a garage (4 stall) the others have large concrete parking slabs.
The city appraised value for the land is 16,400, when i talked with the owner he said he would like to get like 60,000 for it because of location.
Thanks to all for the input it is all very helpful.
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