We get that question a lot, and the answer is: “It is only worth what a buyer is willing to pay.” This is usually followed by our client saying, “But I have more into it than that!” Yes, that might be true, but this is the harsh reality of the market. A buyer doesn’t care what you paid for it, what it was appraised at 5 or even 1 year ago, they only care what it’s value is today, and what they perceive the value will be in the future.
In order to determine its current value, you need to thoroughly examine what you have in the context of the supply and demand of the current market, and to think creatively about different kinds of buyers. While any broker will offer to do a competitive market analysis (CMA), the truth is that you need to use different tools to assess value in today’s market and the suburban residential or mixed-use development is a complex property. For example, if you own vacant developed lots (VDL) in a target market that has 2,000 other VDL’s, your lots would bring a different value than lots in a target market with no other VDL’s.
LandPath has developed a toolkit to help you determine your property’s current value based on market conditions, as well as how several different types of potential buyers may perceive its future value. The toolkit is free to download and our consultants are available to answer questions, train your staff how to use the toolkit, or to complete a LandPath Assessment that identifies the highest and best value for your property.