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    Lesson 22 of 37

    Module 6: Pricing With Strategy (Not Emotion)

    3D illustration showing clipboard with checklist and magnifying glass, representing detailed comparable sales analysis and adjustments

    Adjusting for Utilities, Location, Access & More

    How & Why We Adjust Comparable Sales

    When you're looking at comps (comparable lots to yours and what they recently sold for), no two parcels are exactly alike. Even in the same subdivision or county, little differences — like whether it's cleared, partially cleared or not cleared at all — can mean thousands of dollars in value.

    That's why we make adjustments.

    Think of it like shopping for a car: two trucks may be the same year and model, but if one has brand new tires and the other needs $1,000 worth of replacements, you'd naturally value them differently. Land works the same way — adjustments make comps apples-to-apples.

    The goal of adjustments is simple:

    👉 Ask yourself: If that comp had the same features as my property, what would it have sold for?

    Common Adjustment Categories

    Here are the biggest differences you'll see in land, and the typical dollar or percentage impact. (These are rough rules of thumb — exact amounts vary by state, county, and even neighborhood demand.)

    Access (Road Type)

    • Paved road vs. gravel: Buyers often pay a 10–15% premium for paved access.
    • Gravel vs. dirt: Dirt tracks usually discount another 5–10%.
    • Easement-only access (no direct frontage on a public road, only legal right to cross someone else's property): Often a 20–30% discount; some buyers won't touch it.
    • Landlocked (no legal access): Can cut value by 50% or more unless corrected.

    Utilities

    • Power at road vs. none nearby: Adds $5,000–$10,000 on small lots; can be higher on rural acreage.
    • Public water/sewer vs. well/septic: Public hookups often add $5,000–$15,000, depending on install costs in that county.
    • Well/septic already installed: Adds $8,000–$20,000 depending on local cost.

    Clearing & Terrain

    • Wooded vs. cleared homesite: Clearing ¼ acre can run $3,000–$5,000 in most counties. Larger clearings cost more.
    • Flat vs. sloped/rocky: Buildable flat land usually earns a 5–10% premium over lots needing grading or fill.

    Lot Position & Location

    • Corner lot: Often adds $2,000–$5,000, depending on subdivision.
    • Backs to busy road or power lines: Usually subtract $2,000–$5,000.
    • Proximity to town/amenities: Closer lots often bring a 10–20% premium compared to very remote parcels.

    Size Differences

    Smaller parcels (<1 acre in subdivisions): These often sell at a higher price per acre compared to bigger tracts. That doesn't mean a smaller lot is worth more overall — it means buyers are willing to pay a premium for affordability. For example, a ½-acre lot might sell for $20,000 ($40K per acre), while a 10-acre parcel in the same area might sell for $80,000 ($8K per acre). The smaller lot costs less total, but its per-acre value is higher because it's more accessible to the average buyer's budget.

    Bigger tracts (10+ acres): As land size increases, the per-acre value usually decreases. Buyers expect a discount for purchasing in bulk. A large property may still sell for more overall, but on a per-acre basis, it's typically cheaper than smaller parcels.

    Flood Zones & Wetlands

    • Zone X (minimal risk): Baseline value; no discount.
    • Zone AE / A (higher risk but buildable with elevation/fill): Typically reduces value by 5–15%, but if you've priced accordingly and frame it positively, it's rarely a deal killer.
    • Wetlands (partial lot): Usually only the wetlands portion is discounted. Buyers pay full value for the dry, usable section. Expect a 10–20% discount if much of the lot is flagged, but getting a low-cost confirmation letter or delineation can often eliminate false alarms and restore full value.
    • Full wetlands (entire lot flagged): Can cut value sharply unless marketed as recreational or for conservation.

    How Much to Adjust in Your Market

    These rules aren't set in stone. In some counties, a paved road might only add $2,000. In others, it could mean the difference between selling and not selling at all.

    👉 That's why you need to research local install costs:

    • Call a septic contractor and ask the average price.
    • Call an electric co-op and ask what it costs to bring power 500 feet.
    • Check county permit fees for wells, grading, or hookups.
    • Use those real numbers to fine-tune your adjustments instead of relying only on general averages.

    Key Takeaway

    • Adjustments turn messy comp spreads into a clear, realistic pricing range.
    • Always tie adjustments to real-world costs buyers would face.
    • Use national rules of thumb as a starting point, but confirm with local contractors, county offices, or utility companies to keep your adjustments grounded.

    👉 Now, let's walk through a few realistic examples where we take raw comps, adjust them step-by-step, and land on the true price range for a property.

    Example 1: Pricing a 1-Acre Residential Lot (with Flood Zone AE)

    Subject Property

    • Size: 1 acre, rectangular
    • Location: Quiet neighborhood, 10 minutes from town
    • Access: Paved subdivision road
    • Utilities: Power and water available at the road, septic required
    • Other: Flat and mostly cleared, easy to build on
    • Flood Zone: Portion flagged AE (elevated foundation required per county)

    Step 1: Raw Comparable Sales

    • Comp A – 1 acre, paved road, power/water at road, mostly wooded, sold $40,000
    • Comp B – 0.9 acre, paved road, power/water at road, cleared, sold $42,000
    • Comp C – 1.2 acres, gravel road, power at road, water ¼ mile away, sold $35,000
    • Comp D – 1 acre, paved road, no utilities, wooded, sold $30,000
    • Comp E – 1 acre, paved road, power/water at road, cleared, corner lot, sold $45,000

    (Assume comps are Zone X / no flood requirement unless stated. We'll adjust for subject's AE zone.)

    Step 2: Adjustments (explained simply)

    Comp A ($40,000)

    • Wooded vs. subject mostly cleared → +$4,000
    • Subject in AE flood zone vs. comp Zone X → −$4,000

    👉 Adjusted Value = $40,000

    Comp B ($42,000)

    • Smaller (0.9 acre vs. 1 acre) → −$2,000
    • Subject in AE flood zone vs. comp Zone X → −$4,000

    👉 Adjusted Value = $36,000

    Comp C ($35,000)

    • Gravel road vs. paved → +$3,000
    • Water ¼ mile away vs. at road → +$5,000
    • Subject in AE flood zone vs. comp Zone X → −$4,000

    👉 Adjusted Value = $39,000

    Comp D ($30,000)

    • No utilities vs. subject with both at road → +$8,000
    • Wooded vs. mostly cleared → +$4,000
    • Subject in AE flood zone vs. comp Zone X → −$4,000

    👉 Adjusted Value = $34,000

    Comp E ($45,000)

    • Corner lot premium → −$3,000
    • Subject in AE flood zone vs. comp Zone X → −$4,000

    👉 Adjusted Value = $38,000

    Step 3: Establish Range

    • Low End: $34,000 (adjusted Comp D)
    • Middle: $36,000–$39,000 (adjusted B, C, E)
    • High End: $40,000 (adjusted Comp A)

    👉 True Market Range for Subject Property: $34,000 – $40,000

    Step 4: Apply Pricing Strategies

    Fast Sale Pricing

    Price slightly below middle → $34,900

    Generates quick activity and multiple buyers.

    Top Dollar Pricing

    Price near the high end → $39,900

    More patience required, but achievable with good marketing.

    Wishful Thinking Pricing

    Price far above comps → $45,000+

    Likely sits unsold, eventually requires a price cut.

    Key Insight

    The adjustments are easy to picture:

    • Cleared vs. wooded (cost of clearing).
    • Utilities at road vs. further away (connection costs).
    • Gravel vs. paved road (buyer preference).
    • Corner lot premium.
    • Flood Zone AE vs. Zone X (buyers discount for added elevation/foundation cost).

    👉 By adjusting for these simple, tangible differences, the wide $30k–$45k comp spread narrows to a true range of $34k–$40k.

    Example 2: Pricing a 3-Acre Rural Lot

    Subject Property

    • Size: 3 acres, mostly wooded
    • Location: 20 minutes outside a mid-sized town in Georgia
    • Access: Gravel county-maintained road
    • Utilities: Power runs along the road frontage, no public water (well + septic required)
    • Other: Slight slope, no clearing done

    Step 1: Raw Comparable Sales

    • Comp A – 3.2 acres, paved road, power + water at road, partially cleared, sold $72,000 (Superior: paved road + water line)
    • Comp B – 2.8 acres, gravel road, power at road, wooded, sold $60,000 (Close match, slightly smaller)
    • Comp C – 3.5 acres, dirt easement road, no utilities, wooded, sold $42,000 (Inferior: poor access + no power)
    • Comp D – 3 acres, gravel road, power across the street (100 ft), sold $55,000 (Similar, but utilities less convenient)
    • Comp E – 2.9 acres, paved road, power at road, cleared homesite, sold $68,000 (Superior: paved road + clearing already done)

    Step 2: Adjustments (explained simply)

    Comp A ($72,000)

    • Paved road vs. subject's gravel = –$5,000
    • Water line at lot vs. subject well/septic = –$5,000

    👉 Adjusted Value = $62,000

    Comp B ($60,000)

    Very similar; only difference is size (slightly smaller = higher per-acre rate). Adjust down by –$2,000.

    👉 Adjusted Value = $58,000

    Comp C ($42,000)

    • Dirt easement road vs. gravel = +$5,000
    • No power vs. subject with power = +$8,000

    👉 Adjusted Value = $55,000

    Comp D ($55,000)

    Power 100 ft across road vs. at frontage = –$2,000 (small trenching cost).

    👉 Adjusted Value = $53,000

    Comp E ($68,000)

    • Paved road vs. gravel = –$5,000
    • Cleared homesite vs. wooded = –$4,000

    👉 Adjusted Value = $59,000

    Step 3: Establish Range

    • Low End: $53,000 (Comp D adjusted)
    • Middle Range: $55,000–$59,000 (Comps B, C, E adjusted)
    • High End: $62,000 (Comp A adjusted)

    True Market Range for Subject Property: $53,000 – $62,000

    Step 4: Apply Pricing Strategies

    Fast Sale Pricing

    Price slightly below middle → $54,900

    Generates quick activity, multiple buyers.

    Top Dollar Pricing

    Price near high end → $61,900

    Attracts fewer buyers, may take longer, but possible with strong presentation.

    Wishful Thinking Pricing

    Price far above comps → $70,000+

    Likely sits unsold, requires eventual price cuts.

    Key Insight

    Adjustments are simple to understand:

    • Paved vs. gravel roads change value.
    • Power at road vs. further away adds/subtracts costs.
    • Cleared vs. wooded = real money in site prep.
    • Public water vs. well/septic = upfront cost differences.

    👉 With adjustments, the messy $42k–$72k comp spread narrows to a realistic $53k–$62k range.

    Example 3: Pricing a Quarter-Acre Lot in a Florida Subdivision

    Subject Property

    • Size: 0.25 acre (standard subdivision lot)
    • Location: Interior street of a large subdivision, 10 minutes from main highway
    • Access: Paved subdivision road
    • Utilities: Power poles on the street, public water/sewer not yet installed (well + septic required)
    • Other: Flat, wooded, no clearing

    Step 1: Raw Comparable Sales

    • Comp A – 0.25 acre, paved road, power on street, wooded, sold $18,000 (Nearly identical — perfect comp)
    • Comp B – 0.25 acre, paved road, cleared, power on street, sold $20,000 (Superior: clearing adds value)
    • Comp C – 0.25 acre, paved road, wooded, no power nearby, sold $15,000 (Inferior: no immediate power access)
    • Comp D – 0.25 acre, corner lot, cleared, power on street, sold $22,000 (Superior: corner + cleared premium)
    • Comp E – 0.25 acre, paved road, wooded, power on street, but backing to busy road, sold $16,500 (Inferior: location backs to noise/traffic)

    Step 2: Adjustments (simple & clear)

    Comp A ($18,000)

    Nearly identical → no adjustment needed.

    👉 Adjusted Value = $18,000

    Comp B ($20,000)

    Cleared vs. subject wooded. Clearing = ~$3,000–$4,000 value. Subtract $3,500.

    👉 Adjusted Value = $16,500

    Comp C ($15,000)

    No power access vs. subject with power = add ~$2,500.

    👉 Adjusted Value = $17,500

    Comp D ($22,000)

    Corner lot premium ($2,000) and clearing ($3,500). Subtract $5,500 total.

    👉 Adjusted Value = $16,500

    Comp E ($16,500)

    Backs to busy road vs. subject interior lot = +$2,000 premium to subject.

    👉 Adjusted Value = $18,500

    Step 3: Establish Range

    • Low End: $16,500 (Comps B & D adjusted)
    • Middle Range: $17,500–$18,500 (Comps A, C, E adjusted)
    • High End: $18,500 (Comp E adjusted, subject better location)

    True Market Range for Subject Property: $16,500 – $18,500

    Step 4: Apply Pricing Strategies

    Fast Sale Pricing

    Price slightly below middle → $16,900

    Generates quick interest, sells faster than most subdivision lots.

    Top Dollar Pricing

    Price at the top of the adjusted range → $18,500

    May take a little longer but realistic for buyers who want a well-located lot.

    Wishful Thinking Pricing

    Price far above comps → $25,000+

    Too far out of line in a subdivision where buyers can choose from hundreds of nearly identical lots. Likely sits with no activity until reduced.

    Key Insight

    In subdivisions with hundreds or thousands of cookie-cutter lots:

    • Clearing vs. wooded = small $3k–$5k swing.
    • Corner lot vs. interior = $2k premium.
    • Busy road vs. quiet interior street = $2k–$3k difference.
    • Utilities on street vs. further away = another $2k–$3k swing.

    👉 Because so many lots are the same, buyers compare directly. This makes overpricing especially dangerous — buyers will just click on the identical lot next door that's priced right.

    Example 4: Pricing a 20-Acre Remote Recreational Parcel

    Subject Property

    • Size: 20 acres, rectangular shape
    • Location: Rural Arkansas, 45 minutes from nearest town
    • Access: Dirt easement road (narrow, requires 4x4 in rain)
    • Utilities: No power or water nearby (solar/well/septic would be required)
    • Other: Rolling terrain, wooded, good for hunting/recreation but not ideal for building

    Step 1: Raw Comparable Sales

    • Comp A – 20 acres, county-maintained gravel road, power at road, sold $65,000 (Superior: better road + power on site)
    • Comp B – 22 acres, easement road, no utilities, sold $42,000 (Close match: very similar in access/utilities)
    • Comp C – 18 acres, paved road, power and rural water line, partially cleared, sold $80,000 (Superior: paved + utilities + clearing)
    • Comp D – 20 acres, dirt easement, no utilities, landlocked on one side, sold $35,000 (Inferior: access issues + no utilities)
    • Comp E – 25 acres, gravel road, power nearby (¼ mile), sold $58,000 (Slightly superior: better road + nearby power)

    Step 2: Adjustments (simple, tangible factors)

    Comp A ($65,000)

    • Has gravel road vs. subject dirt easement = –$8,000
    • Has power at road vs. subject none = –$10,000

    👉 Adjusted Value = $47,000

    Comp B ($42,000)

    Very similar (size and features). Adjust slightly upward for subject being closer to town by ~10 min = +$3,000.

    👉 Adjusted Value = $45,000

    Comp C ($80,000)

    Superior: paved road (–$12,000), utilities (–$15,000), partial clearing (–$5,000).

    👉 Adjusted Value = $48,000

    Comp D ($35,000)

    Inferior: partial landlocked (major issue). Add back ~$7,000 for subject's cleaner shape and access rights.

    👉 Adjusted Value = $42,000

    Comp E ($58,000)

    • Superior: gravel road vs. dirt (–$7,000), power ¼ mile away vs. none (–$5,000).

    👉 Adjusted Value = $46,000

    Step 3: Establish Range

    • Low End: $42,000 (Comp D adjusted)
    • Middle Range: $45,000–$47,000 (Comps A, B, E adjusted)
    • High End: $48,000 (Comp C adjusted)

    True Market Range for Subject Property: $42,000 – $48,000

    Step 4: Apply Pricing Strategies

    Fast Sale Pricing

    $43,900 — slightly above low end to drive offers from recreational buyers and hunters looking for affordable acreage.

    Top Dollar Pricing

    $47,900 — competitive with the strongest adjusted comps, but could take months to sell given limited buyer pool.

    Wishful Thinking Pricing

    $60,000+ — unlikely to sell because buyers in this segment are extremely price-sensitive and have many options.

    Key Insight

    With remote land:

    • Road type (paved vs. gravel vs. dirt easement) = often the biggest adjustment.
    • Utilities (on site, nearby, or none) can swing value tens of thousands.
    • Landlocked vs. clean legal access is make-or-break.
    • Buyers in this category are typically hunters, campers, or "prepper" buyers — they're bargain-focused, so overshooting the market almost guarantees a stale listing.

    👉 The raw comp spread looked like $35k–$80k. After clear adjustments, the realistic range tightened to $42k–$48k.

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    • Use Case

    Narrow raw comparable sales into a realistic, local pricing range. Paste your subject property plus 3–6 comps and get line-by-line adjustments tied to real-world costs, a low–mid–high range, and three pricing strategies (fast sale, market value, stretch).

    • Prompt

    Act as my land pricing analyst. Using the subject property and comps I provide, make detailed adjustments and produce a clear pricing range with strategies. Do not use canned numbers—tie logic to inputs, real-world costs, and reasonable assumptions where data is missing.

    Rules:
    • Adjust apples-to-apples: Access (paved/gravel/dirt/easement/landlocked), utilities (power/water/sewer + distance), clearing/terrain, location proximity (town/highway/water/recreation), lot position (corner/interior/busy road), size differences, flood/wetlands, and improvements (survey/perc/well/septic/driveway/trails/fencing/pad).
    • Tie adjustments to costs or buyer perception: Use dollar figures where known (clearing, trenching, hookups, well/septic). If unknown, apply a conservative $ or % estimate and flag for local verification.
    • Infer where needed: If details are missing, assume the most likely case (e.g., rural → septic; remote dirt road → 4x4 at times). List all assumptions at the end.
    • Be location-aware: Magnitude of adjustments depends on market; call out which items to confirm with utilities, contractors, or county.
    • Output clarity: Use a compact table/bullets, then summarize with a range + strategy. Avoid vague generalities.
    Output format:
    • Subject Snapshot (1–2 bullets)
    • Adjusted Comp Table: Comp | Raw Price | Key Differences | Adjustments (±$ or %) | Adjusted Value
    • Pricing Range: Low • Mid • High (one-line rationale each)
    • 3 Pricing Strategies: Fast Sale, Market Value, Stretch (pros/cons + likely time on market)
    • Top 3 Sensitivities: factors that would shift price most
    • Local Verification Checklist: who to call + what to ask
    • Assumptions & Gaps: list every assumption or estimate used

    Example Input Format:

    Subject:

    - Polk County, FL; 1.02 ac; R-1 zoning

    - Access: paved subdivision road

    - Utilities: power at street; water ~300 ft; septic required

    - Terrain: flat, wooded

    - Proximity: 12 min to US-27

    - Flood/Wetlands: Zone X (minimal risk)

    - Improvements: survey completed

    - Goal: market value in 30–45 days

    Local costs:

    - Clearing homesite (¼ ac): ~$3,500

    - Trenching: ~$12/ft

    - Septic: $8,000–$12,000

    Comps:

    - Comp A: 1.00 ac; paved; power+water at lot; wooded; SOLD $39,000

    - Comp B: 0.95 ac; paved; power at street; water 0.25 mi; cleared; corner lot; SOLD $42,000

    - Comp C: 1.10 ac; gravel; power at street; well/septic; wooded; 18 min to US-27; SOLD $33,500

    - Comp D: 1.00 ac; paved; no utilities; cleared homesite; survey + perc; SOLD $35,000

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