Jack Lewitz (Exit Strategy Realty)

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Rainmaker
1,453,627
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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

Jul 24, 2015 06:50 AM
Rainmaker
2,630,488
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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.

Jul 24, 2015 06:33 AM
Ambassador
5,324,720
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

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..

 

 

Jul 24, 2015 07:35 PM
Rainer
230,924
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

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

Jul 24, 2015 01:50 PM
Rainmaker
2,442,066
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

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

Jul 24, 2015 12:53 PM
Rainmaker
175,464
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

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.

Jul 24, 2015 06:20 AM
Rainmaker
1,708,079
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

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.  

Jul 24, 2015 05:49 AM
Rainmaker
878,171
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Jul 24, 2015 04:50 AM
Rainer
26,764
Beatrice Briseno
RE/MAX Unlimited - San Antonio, TX
Beatrice M. Briseno, GRI, CDPE, San Antonio, TX

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

Jul 24, 2015 04:44 AM