Creating Value in Land

When evaluating a property for purchase or even if you currently own a property there are some key things to think about to create the most potential value for your investment.

1. What is the properties highest and best use? Generally this will mean what does the city say is the best future use for a particular parcel. A good thing to check on is the city's Master Plan. Bringing the property up to date with this use is generally the best plan. This isn't always a guarantee of what the city will approve for the land though. Before you bring the property to it's highest and best use, you will need to make sure the city is ready for it. Many cities are happy with their current plan and aren't ready to move forward on their master plan.

2. Land is worth more as a fully integrated unit. If you have a small parcel it may be a good idea to make an assemblage of parcels in order to create one larger parcel. This can be especially useful when you are looking to sell. If you are stuck between 2 parcels this can be a way to get more money for your property. Talk to the adjoining property owners, if you can create an assemblage together then you will all benefit from the higher value. This won't always work and can be a tough place to be in if your neighbor won't budge.

3. Develop the land. Land is worth more when it is fully developed into it's highest or best use. The reason for this is that it is very expensive and risky. There are many processes that need to be completed before land can be put to it's highest and best use. The further along you take the process, generally the more money you stand to make. Make sure this is something that is a good idea, sometimes people are looking for raw land and that may be the best way to sell it.

4. Do your homework. As with any investment make sure you do your homework. Land is no exception and can do more harm than good if you don't know what your doing. You don't have to know everything, so try to get to know as many people as possible (ie: Excavators, Realtors, Architects, Builders, etc.).

Contact me with any questions or if you need a Realtor:
Bryan Maynes - Realtor
Dwellings Real Estate
801.631.7530 - Phone
maybry@wfrmls.com - Email

2007 Draper Land Sales Annual Report

Land was a scarce commodity in Draper during 2007, especially in large assemblages. In 2007 there has been a jump towards the development of raw commercial land, and that should continue through 2008 as is evidenced by current construction. There are only a handful of large residential parcels left to develop. The current parcels that are being developed are going to be geared more to the custom home buyers in the $600,000+ range. I see residential land sales in Draper slowing, due to the high price of land and it's general scarcity. However I do see a movement forward in terms of commercial land and development.


Land Sold From 1/1/2007 - 1/1/2008: 28-land listings

Price Range of Sold Land: $20,000 - $1,490,000

Acreage Range: .13/ac - 2.67/ac.

Property Types Sold:
Commercial: 6 from $20,000 - $1,490,000
Residential Improved: 20 from $194,900 - $425,000
Residential Development: 2 from $540,000 - $645,000

For more information call or email me:
Bryan Maynes - Realtor
Dwellings Real Estate
801.631.7530 - Phone
maybry@wfrmls.com - Email

Statistics are gathered from the Wasatch Front Regional Multiple Listing System, and do not represent every land purchase. Information is deemed reliable but not guaranteed.