how the price of a property or piece of land is determined
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The price of ALL things (well, almost all things) is determined by what someone else is willing to pay for it.
Here’s a story. An old family friend passed away a few years ago after a long illness. He owned some assets including farm land. The farm land is going to his son X, since X farms the plot next door. But since there’s 3 siblings, the value of the Land was to be deducted from the 1/3 inheritance that X receives. All seems fair, and X actually does want the land to expand so all is well. Except, what’s the land worth?
X’s siblings want to value the land at $300,000 because that’s what they think it’s worth. X thinks it’s worth $200,000 max. So the argument went back and fourth, involving estimators, calls to real estate agents and layers and such before eventually X said “I’m done arguing, if you think it’s worth $300,000 then list it for that and sell it. Then we can just divide the cash assets”
The land sat unsold for over a year, they dropped the price to $250 and still no bites. Eventually the other siblings agreed to the $200,000 valuation, X got the land and the estate was closed.
The point of this story is that everyone can have a lot of opinions on what something is worth. But what it’s actually worth is the number of real monies that someone else is willing to pay for it. Until an actual exchange of money for land happens, any valuation is just a guess.
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