How Do You Calculate the Cost of Land Per Acre?
The cost of land per acre is appraised according to whether it is an income property, if there are construction costs or what the market value of neighboring land might be. The value of the land is then divided by the number of acres to discern the price per acre.
The land owner must first determine the size of the parcel of land in acres. This can be determined by converting the square feet or square miles of the property. Converting square feet to acres requires dividing the number of square feet by 43,560. Converting square miles to acres requires multiplying the number of square miles by 640. If the land owner is unsure of the property’s size, a surveyor can measure the land.
Appraisals can be made by utilizing market value. Another option is to hire an appraiser to research the parcel of land and make a valuation based on the history of the land or any other factors that contribute to the land’s market value. Once both the acreage and the value of the land are known, the land owner has the complete value of the land per acre and can then parcel off any section of the land to sell.