LandInvestors.com Forums **Ask A Question** Land vs. Home value ratio when determining to buy

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  • #29293
    Thomas Robbins
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    Post count: 36

    Hello, On the Thursday member calls, Steve and Jill will compare vacant land to properties in the same area with established homes to determine if the land is a good buy. Is there a specific ratio? For example, the vacant land is worth 10% of the value that the properties are with homes on them. And would the comparison ratio be consistent around the country or different in each market? Thanks!

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  • Modern Asset Management
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    Post count: 31

    We build single family houses in Pensacola FL. When I buy lots I target less than 20% of house value for land purchase. The assessor is going to roughly call 50% land and 50% improvements. Varies all the time, waterfront vs bad neighborhood for example. Not exactly your question.

    Thomas Robbins
    Participant
    Post count: 36

    Thanks for the reply! that’s what I was wanting to know.

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