How to Calculate the Market Value on a Vacant Property
Calculating market value on a vacant property is achieved by examining relevant data. Home buyers may be skeptical if the home is vacant because of foreclosure or abandonment. Calculating the market value of a vacant property will allow you to know what it a legitimate selling price.
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Instructions
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Examine the condition of the vacant home. The homeowner should be able to allow access, or the entity that owns the home should also help you gain access.
When inside the home, take several photographs and take notes of everything you see. If you are unskilled in electrical work and HVAC, take someone with you who can help you assess the condition. Check the furnace, windows, electrical boxes, roof and basement thoroughly.
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Retrieve a list of similar homes. Look through public data, or the multiple listing service if you have access to that, to find homes that are of similar size, condition and location. In order to get the most accurate market value, it is important to look at the sales from the previous six months.
If possible, take a drive by the comparable homes to gain a better perspective of their features, keeping in mind the new owners may have already made improvements.
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Calculate your market value. If your subject property is similar to a home that sold recently, but needs a new roof, take the amount that the other home sold for, and subtract the cost of a new roof, multiplied by two.
Far fewer buyers are willing to buy a home that needs maintenance. If the home sold for $100,000, and your vacant property needs a roof estimated to cost $5000, you have a market value of $90,000.
Repeat the process with each comparable home on your list until you come up with a price range. The current market value will be a price within that price range, ideally $5000 - $10,000 of a difference.
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