What drives land prices up and down? The price of land is a residual. If you're a builder, how much you're willing to pay for a parcel of land depends on how much you expect to sell the final building for, minus your construction costs (including profit).
The residual method of appraisal
The residual method of appraisal
The residual method of appraisal
What drives land prices up and down? The price of land is a residual. If you're a builder, how much you're willing to pay for a parcel of land depends on how much you expect to sell the final building for, minus your construction costs (including profit).