Jake Burhans explains how to price infill vacant lots: take the cost of a new-build home in that neighborhood and multiply by 10%. This quick rule works for simple lots but not for larger development parcels, which need deeper analysis.
Yeah, quick underwriting, new build price times 10%, buy price for land. I would just say buy price for like vacant lot, realistically, right? That's what you're doing. Like if it's a price—
yeah, so all this information was from us for the past year. So I didn't really—
no, I know. But just to like, I'm just looking at right now, really like to get some— this is like vacant lot, right? It's like a lot and you're looking at other houses that are new builds in that neighborhood and saying, okay, 10% for the land, like Amy's land, for example, you know, it was a lot versus like a development land that's like different story, kind of like, yeah, 10%, but you're doing some more— you have to do more DD on it.
