Best Way to Value a Block of Land?

LCoatesy on 03/05/2019 - 09:43

My parents own a block of land ~3000 sqm in hills of Perth, WA. They've owned it for quite a long time. It's 30 minutes from the CBD, with great views of the city. They were recently told by the local council that they could put up to 6 units on it.

It would be ideal to develop ouselves, but due to financial constraints they want to sell as is.

My question is, what is the best way to value this block and achieve the maximum price?

Theres not really any comparable properties around. I did see 450 sqm lots selling for 300k nearby. However, I have no idea what the cost would be making my parents block into lots.

My parents have so far just gone to a local real estate and asked them what they think. I'm worried they might low ball my folks to get a quick sale.

Really appreciate any help!

Financial

Comments

  • 87percent on 03/05/2019 - 10:46

    at the blocks being sub-divided around me, they often have a sign as who the company is that is doing the work (like "another GJ Gardener Home" or "OzBargain Housing"), could you try and contact them and see how much they would be willing to pay?

    • Coatesy on 03/05/2019 - 10:56

      Thanks for that, thats a really good idea. I might give it a go.

  • spiff on 03/05/2019 - 10:53
    +1

    get pricing from multiple agents? i don't think the risk is under quoting to get a quick sale, more like over quoting your parents to win the business

    • Coatesy on 03/05/2019 - 10:57

      Yeah, I think thats the best bet. Thanks.

  • websterp on 03/05/2019 - 10:54

    You can always ask a real estate agent in the area for a valuation. Whether you want to sell the property through them or some other party would be up to you.

  • djkelly69 on 03/05/2019 - 11:08
    +1

    For valuing, speak to agents and/or a valuer.

    For achieving the best price, I reckon having a development approval (or equivalent) for what can be done with the block will make it a lot more attractive to likely buyers, rather than just selling a pipe dream.

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