What’s My Land Worth?

That is a question I hear all the time from landowners: “What’s my land worth?”

Early in my career in Southwest Florida real estate, I was quick to answer. I would say, “your land is worth so much per unit for residential, or so much per square foot for commercial or industrial land.” I am not sure if times were simpler back then, or if I simply did not yet understand all the pieces of the puzzle that go into evaluating vacant land.

After more than 50 years in the business, my answer has changed to:” without a lot of research, I really do not know what your land is worth.”

As Southwest Florida has grown from sleepy seasonal towns into large, year-round communities, the cost and complexity of development have grown right along with it. Development regulations, zoning laws, environmental rules, coastal setback requirements, building codes, infrastructure demands, and market trends have all changed over the years and will continue to change.

The value of vacant land in Florida can vary dramatically based on location, zoning, future land use designation, and the availability of utilities. What may appear to be a great piece of property can quickly become far less valuable if sewer, water, drainage, road improvements, or other infrastructure requirements make development difficult or expensive.

Beyond zoning and development costs, there are many other variables that must be considered when evaluating vacant land. For commercial land, some of the key factors include the types of uses allowed within the zoning district, average daily traffic counts, visibility, access, surrounding demographics, nearby businesses, and even which side of the highway the property is located on. In some cases, being on the “going home” side of the road versus the “going to work” side can make a significant difference in value.

All of these factors must be considered when trying to answer what used to seem like a very simple question.

When I consult with clients about the value of their property, I encourage them to invest some time and money with the right professionals BEFORE marketing the property or accepting an offer from a developer or investor. Lack of information can lead to selling a property for too little, or just as easily, having an unrealistic expectation of its true value.

Having answers to these questions also puts a seller in a much stronger position. The more information you can provide to a potential buyer, the more confidence they will have in the property, and the less time they will need to spend on their own due diligence. In many cases, that can translate into a higher price and a faster sale.

If you have questions about the value of your property or what its highest and best use may be, our team welcomes the opportunity to sit down with you and help you find the answers.