I am looking at a property that will most likely need to be torn down rather than re habbed, how does one assess land value only in order to make a resonable offer to the seller? Thanks
Essentially you will want to compare it with other lots in the area- recent sales, ideally, but you can use asking price if you are considering just buying a lot. Then deduct the cost of demolition and hauling the rubbish.
If no other vacant lots are available or have been sold recently in the area, then you can base it on the anticipated profit from your project, but getting an accurate value this way is much more difficult.
A third method would be to see what percentage of the tax appraised value is attributed to the land, then multiply the price of comparable recent sales in decent condition by this percentage. This is what the IRS would say the land is worth, but it may or may not be an accurate figure.
Good luck! Hope there are some comps out there to make it easy and accurate-
The phone jacks will be costly. I had that done recently and it cost me $65/jack in labor and another $100 parts. Plus I would not do that repair. The house had jacks set as was required at time of construction. Let them pay to fix that.
Integrated wiring system usually mean several mini controls and one multi-control
Is it an older home or one less than 20 years? If less than 20 it might, and I say might, mean that the phone, cable and dsl(if it exists) are on the same outlet.
Take a look at the outlets and see if the items I mentioned above are on the same outlet plate or if there is a separate phone jack outlet , separate cable outlet , etc.
If they are on the same outlet then chances are it will be more expensive than I mentioned above to add in more phone jacks as they will have to do more than they would on sinlge systems
Essentially you will want to compare it with other lots in the area- recent sales, ideally, but you can use asking price if you are considering just buying a lot. Then deduct the cost of demolition and hauling the rubbish.
If no other vacant lots are available or have been sold recently in the area, then you can base it on the anticipated profit from your project, but getting an accurate value this way is much more difficult.
A third method would be to see what percentage of the tax appraised value is attributed to the land, then multiply the price of comparable recent sales in decent condition by this percentage. This is what the IRS would say the land is worth, but it may or may not be an accurate figure.
Good luck! Hope there are some comps out there to make it easy and accurate-
Chris
hire an appraiser.
The phone jacks will be costly. I had that done recently and it cost me $65/jack in labor and another $100 parts. Plus I would not do that repair. The house had jacks set as was required at time of construction. Let them pay to fix that.
The rest of the items sound reasonable.
The house has an integrated wiring system, I am not sure what that really is. Any ideas?
Integrated wiring system usually mean several mini controls and one multi-control
Is it an older home or one less than 20 years? If less than 20 it might, and I say might, mean that the phone, cable and dsl(if it exists) are on the same outlet.
Take a look at the outlets and see if the items I mentioned above are on the same outlet plate or if there is a separate phone jack outlet , separate cable outlet , etc.
If they are on the same outlet then chances are it will be more expensive than I mentioned above to add in more phone jacks as they will have to do more than they would on sinlge systems
Offer them a couple of hundred to go away on this. You will save it on carrying costs and close your deal..
[addsig]