How Land Value Contributes to Your Home’s Market Value

April 5, 2018


Bigger is not always better. Some examples off the top of my head are hair, sugary drinks, shoulder pads, cholesterol and spiders. Clearly this is a subjective list. Perhaps you disagree with my list. I'm sure you could add many examples based upon your experiences. The fact that I came up with these items is probably disturbing as well.  The same can be true of land value. Land value is sometimes counter intuitive. For that reason, it is commonly misunderstood. For instance, say a person wants to sell their home. Vacant land sales in a neighborhood are selling for $100,000 per acre. Their home has 5 acres. Comparable homes in the neighborhood with only 4 acres are selling for $400,000. Does that mean the home with 5 acres will sell for $100,000 more? That would be awesome! But that's not usually how it works. Why?


Often a vacant lot that is buildable, has a higher market value than one in which a home is already constructed. Once there is a home on the property, much of the valu