A recent mailing brought a response from the owner of an eight acre lot in a hot market near a major city in Ohio. The lot is eight acres, but the access is only 40’on the road, which leads to a long, narrow, 40′ wide arm that eventually opens to the main part of the lot. There is a creek running north and south in the western third of the lot. It is not in a flood plain. I have been in touch with the planning department and the conclusion is that, although it is theoretically possible to subdivide into two lots, the 40′ access point makes it very difficult. So, it is likely that a only a single house can be built.
I have access to local MLS and have a pretty good idea of value. But acreage value really doesn’t translate if only one house can be built. I know what the owner paid in 2001.($96,000) I used the Redfin Data function to create a chart for value change since then and that value matches the current MLS acreage sales value. But I’m concerned that the eight acres really can’t be valued on a per acre basis, considering the limitation of only being able to build one house.
I’ve done house wholesale flips in this area but this would be my first land deal. I’ve made lots of offers but no deal so far. My plan is to call local builders, if I gt it under contract.
Any and all thoughts are welcome.