The simplest explanation of the market value of a piece of land is that it is worth whatever people are willing to pay. If someone is willing to pay $10,000 for a piece of property, that property is worth $10,000 and it is assumed that all properties around the first parcel are also worth around $10,000. A few months later, a property several miles away may sell for $5,000. The parcels between these properties are re-valued at $7,500, between the two prices. This system of basing land values on nearby, comparable sales is something that real estate agents frequently use to place a value on a piece of land. But this is really little more than an educated guess.
Local governments also involve themselves with property values. They look at the market value of the property based on the last time it sold or on comparable sales in the area. They then use that market value to come up with an assessed value. The assessed value is often a percentage of the full market value. This assessed value is what the county uses to determine how much they will charge in property taxes on that piece of property. Sometimes the county looks at the market values every year and adjusts the assessed value accordingly, and sometimes they will only re-evaluate a property when it sells. The assessed value might lag far behind rapidly changing market values an area.
“We hope this blog helps educate our customers on our acquisition and resale methodologies,”
About Gratia Group
With over 10 years in the industry, Gratia Group is one of the largest and most reputable online sources for land sales in Florida. Having sold over 13,000 properties in the last 8 years, Gratia Group has established a solid track record and credibility in the land sales marketplace with most of our sales being from word of mouth advertising. We specialize in offering land in a variety of areas that fit the needs of novice, first-time buyers, experienced land investors and corporate clients through bulk purchasing. In fact, most of our buyers are ordinary people wanting to make a solid investment in buying vacant land at rock bottom prices.