I have looked at this house so many times, and each time I see more and more possibilities for what it could be. I have so much optimism despite the repairs it needs. It is not every day that I run across a home like this.
Home is large. I mean, exceptionally large 5,550 sqft on 20 acres. I realize this is not such a bonus when we are talking flips, however, I do see potential. Of course there is risk. There is risk in each one of the homes we dive into for the vision and hope of profit. I have never even dreamed of doing one this large, so I can completely understand the reluctance from an investor standpoint.
However, then I look at the numbers, the comps and the excitement resurfaces.
Let’s just look at this systematically – just the numbers first.
20 acres in Brazos County, however, I am going to tighten down to focus on just one area as so that the results are not skewed. I am going to focus on 20 acres outside the city of Bryan within Brazos County. This way, we exclude the College Station land, another topic for another time.
Searching in Bryan, Brazos County, there are 20 records for acreage either active, pending or sold within the last 12 months with 15-25 acres.
- 13 Active for Sale
- 4 Sold
- 3 Pending Sale
In efforts to not skew the data, I am going to remove the obvious ones that are sending my averages thru the roof. Within the 13 active, there are 3 that are commercially zoned and one that is zoned Urban Undeveloped (Each of these are listed at 2-6 million)
Ok. this is better.
Out of the 20 properties, 4 were removed leaving the stats of the remaining 16 properties. Now, looking at the average, of $241,338 does not really mean much to me, only gives me a generalized look at a price range lows-to-high. In effort to get a better idea of the land value in this area, I am going to extract the data and run some numbers in Excel.
(Because I am not allowed to post addresses and sold amounts, I am just sorting this by distance and extracting the addresses to protect property owner privacy. )
Starting with Land Value – Active
and now we can calculate a range of value. There is one question in the data that has me somewhat confused. The 3rd sold comp had a list price of 270K, only 81 days on the market and a sales price of $90K. This is really hurting the stats because I truly feel there must have been some underlying force that would cause a seller to accept such a lower price way out of the range of values within a short list period, IE – external motivation, problem with land etc.
Land Value Range
Taking this range, and subtracting from the list price of the subject property we can estimate the value of the house at the list price. I elected to this route because the land is the more consistent value as opposed to the comparable homes which vary in likeness in age, condition, and styles.
Resulting in price per sqft…current list price of $560,000.00
Now, that we have taken the LARGE house down to a manageable number, it does not seem so intimidating! You can see the logic start to unfold. Look at our price range on the house – and remember we are not even adjusting values for the huge tank on the land, which in my opinion, really adds to the value in the overall ambiance? of the property.
The land value is almost 1/2 the value of the entire price!
Take a look around the property! From a few feet up… or just give me a call! Sherry Perry 979-229-7254 or email email@example.com