The above chart represents a breakdown by parcel size, days on the market (DOM) and sale price. It's interesting to see that the smaller lots (under 2 acres) sold at a higher median price than the next larger grouping (2 to 4.9 acres). Further examination shows that 40% of the under-2 acre pieces had a curbed street - which means they were in a development - either a site condominium project or a planned unit development.
It's not unusual to see these lots go for a premium price for their size since the developer has put in a hard road, curbs, and sometimes sidewalks, too. They often have underground utilities, and may be connected to a local sewer district if the density is high. All of these amenities cost the developer, and those costs are passed on to the consumer. These lots are often less than a half-acre in size, creating a denser community.
The sold data gives us an average of 34.75 sales per month for 2005. If you compare that to land that is currently offered for sale, we have 1,370 lots available in all sizes. If they were all priced properly (priced realistically to sell), there would be a 39 month supply (1,370 lots divided by 34.75 sales/month). But we know that not every piece of vacant land - as with houses, cars, or anything else - is priced realistically.
The 'Days On The Market' are much larger for currently listed parcels than those of the sold properties. Since those are average figures, it indicates that some land has been listed for a lengthy amount of time.
There are so many factors that influence the final market value of vacant land. In some ways, it is more difficult to price properly than a home. If you're considering buying or selling vacant land it's important that you work with a Realtor who knows what these factors are, and how much or little they contribute to the final value of land.
There is a constant and continued interest from consumers searching for land on which to build homes. Modular homes are especially popular. Smaller, non-production builders area also on the lookout for a nice piece of land, as well.
I get many, many calls every month from people who have newer, larger, beautiful manufactured homes, too. They are getting squeezed by lot rent increases and want to find land where they know the amount of their monthly payment. Unfortunately, this requires a lot of work as some Townships have specific areas zoned for this type of home, or there are private deed restrictions preventing their placement.
If you're considering a land sale in my market area, I'd like very much to go over the many items that affect the marketing price. If you're a purchaser, I'd also like to work with you, but in any case make sure that you find a knowledgeable, local Realtor. There are too many nuances that are missed if both you and your agent aren't from the immediate area. I work with consumers and builders on vacant land acquisition and sales. Feel free to call or email with any questions that you might want answered.
