Land Prices

Determining land price is not as a straightforward as estimating the price of a house. There are many factors that will influence the price of land that you purchase. These factors are normally similar to those that are use to estimate the price of a house or a building but the fact that plots of Land for Sale are located in isolated areas means that it is sometimes difficult to compare the price of one piece of land to the next. This is different to the property market, where comparables are easy to find.

So what are the main factors that should be assessed to determine land price? Listed below are some pointers to help you get started:

Does the land have Planning Permission?
Planning permission is one of the major factors that influences its price as a plot with planning permission already approved will be significantly more expensive than a plot of land that has no approval. The price of a plot that has obtained permission could be as much as ten fold from the original cost of the same land without permission.

In the case of land that does not have any permission, its likelihood to obtain permission in the future will also have a bearing on the cost. Plots that have a chance to get any sort of permission will include land that is located near a housing development in residential surroundings and the local councils desire to build further housing around where the land is located. However, plots located in the heart of beautiful protected countryside will have a much lesser chance of obtaining permission.

The Area
The prices of land are related directly to the property prices in the area where you are looking to buy. So a piece of land in Kent will be more expensive than a plot in Newcastle.

Transport Facilities
Again, like the property market, land situated closer to good transport links will positively influence its price.

The Actual Land
The actual land itself will also be factor for the price. The type of attributes that need to be considered for plots are; its size, the cost needed to build a house, the value of the finished house.

The above factors affect the value of land for sale in the local area. The value of a particular plot is also dependent on other factors, relating to the plot itself:

What can be built on the land? How big a house, how many bedrooms, what style of house etc?

Bigger developers usually work to a 30% profit margin on offering a newly built house on a plot. Private investors can look to gain more.