Buy the Lot, Get the Home for Free

Beautiful property with west views of Highland Lake! Premier lot close to Interlachen golf course! Home is not available for showing.

–per MLS

“Home for sale, home not available for showing.”


It turns out that what’s really for sale here is the land:  according to Hennepin County, 70% of the $588k tax assessed value, or $413k, resides in the land. That compares with the usual 25% – 33%.

Is it worth it?

As I’ve blogged previously, to determine if the asking price is in the ballpark, multiply by 3.5, then subtract 20%.

In this case, 3.5 x $850k (list price) = $2.975M. Subtracting 20% from that is $2.38M.

If there is a precedent for $2.4M homes on the block . . . the asking price is right. (Twenty percent is typically how much new construction can overshoot prevailing, nearby prices.)

P.S.:  sure looks like an aerial shot to me (discussed a couple posts back).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.
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