What this due-diligence check covers
Start with recent comparable land sales, then adjust for location, size, access, shape, utilities, zoning, site conditions and entitlement.
Listings show seller expectations; closed sales provide stronger market evidence.
Why it matters before closing
A price-per-acre shortcut can mislead when one parcel is build-ready and another has no access or septic feasibility.
What to verify
- Define the likely market use.
- Select truly comparable closed sales.
- Adjust for major rights, improvements and constraints.
- Subtract or reflect extraordinary development costs.
Red flags that deserve follow-up
- Comparables from a different use or school market.
- Small-lot price per acre applied to large acreage.
- No adjustment for utilities or legal access.
- Potential subdivision valued as approved lots.
Evidence to keep in the parcel file
- Comparable sale sheet
- Constraint and improvement adjustment notes
- Broker or appraisal input
- Sensitivity range
Questions to ask before the deadline
- What is the most probable legal use?
- Which sales are truly comparable?
- What improvements are included?
- Which risks reduce marketability?
- What is the value after site costs?