The highest asking price in your neighbourhood is not automatically the value of your land.
A useful asking price should be based on comparable property and the specific strengths and weaknesses of your parcel.
Start with the micro-location
Compare land in the same immediate area where possible.
A parcel can be worth more because it has:
- tarmac frontage
- shorter access road
- commercial frontage
- better shape
- existing utilities
- approved use
- developed surroundings
A nearby parcel can be worth less for the opposite reasons.
Convert comparisons to the same unit
Do not compare a quarter acre with a 50 by 100 plot without converting the numbers.
Use price per acre, price per square metre or price per comparable plot size so you can see whether the asking prices actually line up.
Separate asking prices from completed transactions
Online listings show what sellers want.
They do not necessarily show the amount buyers finally paid.
Use multiple sources and be cautious about one unusually high listing.
Price the problems too
Reduce your expectations where a buyer will face material extra work, such as:
- poor access
- steep slope
- unclear beacons
- expensive drainage
- unresolved subdivision
- title restrictions
- missing utilities
Fixing a solvable issue before sale can sometimes produce a better result than discounting for it.
Get a professional valuation when the stakes justify it
A registered valuer can provide a formal opinion using recognised valuation methods.
That can be useful for high-value property, financing, estates and transactions where the parties need an independent basis.
Leave room for negotiation deliberately
Decide:
- target price
- asking price
- lowest acceptable price
Do not set the asking price so far above the evidence that serious buyers never enquire.
For negotiation from the buyer’s side, see how to negotiate land price.