Free Land Value Calculator

Land value is typically estimated through comparable sales (similar parcels sold recently), income approach (value based on development potential), or residual analysis (work backward from end value minus development costs). The approach depends on whether the land is raw, entitled, or development-ready.

Residual analysis starts with the end value of the completed development, subtracts all hard costs, soft costs, carry, and developer profit, and what remains is the maximum you can pay for the land. It's the most precise method for valuing development land — Freddie can walk you through this analysis.

Location (proximity to employment, amenities, infrastructure), zoning (what you're allowed to build), entitlement status (raw land vs. permitted and ready to build), utilities availability (water, sewer, gas, electric), topography, and comparable development activity in the area.

Raw land can be excellent but requires patience and expertise. Returns come from appreciation as development expands, rezoning gains, or your own development. Risks include long hold times with no income, carrying costs, environmental issues, and entitlement uncertainty. Not recommended as a first real estate investment.

An infill lot is a vacant or underutilized parcel within an established, built-out neighborhood. Infill lots benefit from existing infrastructure (utilities, roads, schools) and established market values from surrounding improved properties. They're generally lower risk than raw land development.

Upzoning (allowing more density or different uses) dramatically increases land value — sometimes 2-5x or more. A single-family zoned lot rezoned to multifamily can multiply in value based on the additional units it can support. Downzoning reduces value. Monitoring zoning changes is a land investment strategy.