Have you ever wondered why the cost of a piece of land is priced the way it is? Understanding how commercial land near St. Cloud, MN is valued can be difficult, so we’d like to clear up a few ways property is priced, and why they make sense.
If you’re looking for fairly-priced commercial land for sale or lease, get in touch with our team at Miller Properties today!
Land size is key to any property valuation. The more land is available on a single plot, the higher value it can be used for and sell for.
Shape also plays an important role. Typically, square- or rectangular- shaped parcels will have the highest value, since you can use them most readily. Long strips or jagged property lines have low utility, and thus lower value.
Topography can sometimes be overlooked, but if a parcel is not flat it may need to be cut down or filled in to provide a good building or parking lot foundation. This can increase costs, and lower the value of a piece of commercial land near St. Cloud, MN.
Likewise, the geography can also affect value. Underlying rock or water can interfere with foundations, or may not be suitable to construct on for other reasons. This can be expensive and time consuming to work around.
If utilities aren’t present, bringing them to the site can be an additional cost which needs to be evaluated. Even if utilities are present, they may not be high enough volume for your use.
Any fees on the property can also affect the value. Special assessments, local taxes and other development costs can change the price.
Market demand is going to be a huge variable for the value of commercial land near St. Cloud, MN. Based on the location and current planned use in the area, you can make some educated guesses or purchase a detailed study of the market to determine what the future demand might be in the area for your type of use.
Sale Comparison Valuation Process
Sales comparison is the standard way to value commercial land near St. Cloud, MN. An analyst can look at the active listings of raw land in the area as an indicator of value. These aren’t closed transactions, so they are usually a bit higher than the final negotiated price depending on how fast the market is moving.
Depending on the market, it may be hard to find similar properties which have recently sold, and so this method can be hard to utilize. It’s best to view three to five similar properties to develop a good valuation.