Direct Price Comparisons

From: Michael G


Hi,

Currently looking for land. I had an agent fax me a few prices and site plans. Rather interesting.

On the map there's these 3 blocks, 2 are being sold together and another just a block away is being sold also.

Note that all the blocks are in the same street and even on the same side of the street and are seperated by no more than 50m.

The combined blocks have a total area of 6693 sqm and are asking for $250,000 whereas the other block which is 3248sqm in size is asking for $189,000.

Without any other comparison, I thought I'd calculate the cost per sqm for each block.

$250,000 divided by 6693 = $32.35 per sqm

$189,000 divided by 3248 = $58.19 per sqm

So I applied the cheaper measurement against the smaller block to see what that would be priced at and found;

$32.35 x 3248 = $121320.78

nearly $70k difference based purely on a basic comparison analysis. Isn't that interesting?

Regards
Michael G
 
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Reply: 1
From: J Parker


But Michael, when blocks are being sold together aren't they always cheaper? Buying in bulk, as they say, is the way to go!
cheers, Jacque :)

PS: So what are you going to build on them?!
 
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