I have spoken to several consumers that have asked me about what their acreage is worth or what is the price per acre in the area.
The answer to that is: "It depends."
What do I mean by that? Well there are many different variables that come into play in pricing land.
First of all, it depends on what area the property is located. Each area has different values on the property.
Next, what is the property like? Is it flat, sloped, mountainous, are there wet lands? Is the property usable?
If the property is swampy or mountainous, it is considered unusable because nothing can be built on it nor can it be used for farming, animals, etc. It's just there. These have very little value.
Flat, or sloping lots are more desirable, and, therefore, more marketable, having a higher value.
If it is large acreage, and the property is sub-dividable and passes the perc tests, it holds a higher value because these can be developed in the future.
Another thing to consider is that the more acreage the lot has, the less value per acre. This is solely due to the quantity rule. The more of anything you buy, the less per unit you pay.
So, before any values can be placed on land, the different factors mentioned need to be considered as to its marketability.
Brigita McKelvie is a REALTOR® (Pennsylvania License #RS297130) with Cindy Stys Equestrian & Country Properties, specializing in rural and horse properties and farms in Eastern Pennsylvania. She has an e-Pro® (Certified Internet Expert) certification and a GRI (Graduate, REALTOR® Institute) designation.
Brigita McKelvie, REALTOR
Pennsylvania License #RS297130
Rural and Horse Properties and Farms
Cindy Stys Equestrian & Country Properties, Ltd.
The Premier Equine and Country Real Estate firm serving Eastern Pennsylvania from back yard operations to world class equestrian facilities.
Use a REALTOR with "horse sense" that doesn't horse around when it comes to horse properties.
The quantity topic always comes up out here. Are we talking a 2 acre mini farm or 70 acres? Big difference on price per acre, huge!
Thanks for the great post. Homes that have acreage typically sell for more in Austin. I am sure it is the same everywhere. I have found that most people would rather have a home on a larger lot. It seems that the production builders are squeezing more new homes on to smaller lots .15 average. Whereas 20 years ago a average home lot was .30. You are so right that the quality of the land also plays an important role when factoring the price. Kudos!
;)