When you build a new home there must be a lot for construction. That’s basic. How much does the lot cost? I’ve heard buyers say their lot was included with the purchase of their home. Nope. Not true. Never, ever. The cost may be minimal, but there is a cost. Why would you pay more – or less – for a specific lot?
!) The View – Water, city, mountain, park, golf course – these are a few examples of lot views that would command a premium price. Is there a landfill, factory, or what would be considered a nuisance across the street? No premium!
2) Traffic – A busy road behind or in front of your lot would decrease the value of your property. The lot is cheaper. Homes are usually more difficult to sell when built on a busy thoroughfare. Sometimes builders offset the location by increasing the lot size as well as setting a lower price.
3) Proximity – Is your site near the park or pool? The value of a lot so located depends upon your preferences. Many people don’t want to live next to high traffic areas and a pool in summer is definitely high traffic in Texas. Others are thrilled with the convenience. Personal preference plays an important role in the home buying process. In a neighborhood, proximity to the pool or park may or may not be considered valuable. Depends on the neighborhood involved. Just remember the same feature you fall in love with may not be desirable to others when you put your home on the market in a few years. 4) Convenience – This is not the same as proximity (meaning simply ‘near to’). Proximity to a golf course or a lake, especially if the neighborhood was built specifically for the use of these amenities is a convenience and a lot located nearby would probably be considered premium, with the price adjusted accordingly.
5) Size – We like our space here in the Lone Star State and we’re usually willing to pay more for a larger lot. This doesn’t mean a larger lot is always worth more. There are other factors to consider – note the remarks in the items above. A larger lot with no negatives attached to it will have a premium price.
6) Status – Gated communities with specific amenities, structural requirements, in highly desirable locations command a premium price. Lots within these communities may have additional features which make them more desirable – a premium might be placed on these sites.
Also consider, is the lot flat? On a corner or cul-de-sac? Near a cemetery or industrial park? What direction does it face – an item of extreme importance to many buyers, especially in certain locations. North, South, East or West, each direction may carry a different premium! You only have to remember our previous Summer and temperatures of 110 degrees to feel the heat of brilliant August sunlight pouring through 2-story windows! Window placement should be strategic!
Lot premiums range from zero to hundreds of thousands, even millions of dollars. An unobstructed ocean view might be priced at millions more than its less desirable neighbor across the street.
What’s important to you? What does a perfect homesite look like? What brings value to you?