Jack Lewitz I would say it depends on the highest and best use for the property. Zoning should dictate the property value.

Actually it is a math problem. The developer prices out the finished product in today's market. Deducts cost construction, land and misc expenses and ends up with a net profit or rate of return for his money and time. The land is worth what the formula reveals to a developer.

It depends on the value of the current home vs the land value for a potential townhouse.

Sell it to whoever pays you the most for it, the investors will know what the land value is..

the seller. hands down. however i have tried deals , where we offer a slightly below market price and offer a % of the deal on the back end

Uhmmm in my market investors never ever pay what a home owner will pay.

Depends on the situation.  In general, investors want a "deal".  However, when they need the property, or land I have seen them pay more than fair market price too.

Most of my answers to these kinds of questions is: "It depends".  The property certainly may be worth more by tearing down the existing buildings and developing it.  The owner/occupant buyer is not going to want to pay development value.   There are a lot of variables.  It depends on the location, topography, size of the parcel, etc.  

Depends on the top end a developer can create AND if other inventory is available.  Occupant buyers look at cost, developers look at profit.

They seldom walk away from real profit.

It's been my experience if its a tear down the developer will only want to pay the value of the land