Is there a class A, B rating on commercial land for sale?

In Selling Property - Asked by Bernie M. - Jun 30, 2013
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Jessica M G.
Broker/Agent
Bethel, CT

What you are trying basically ascertain is the "production value" of the land. Property has value because it gives rise to a stream of future income. Determine the lands highest and best use, and you will have the value., The market price will be determined by what the land can be sold for at a specific period in time.

Jul 2, 2013
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Sharon T.
Broker/Agent
Indianapolis, IN

I'm not aware of any letter rating scale for commercial land, although that grading system is used regularly for commercial buildings. There are other non letter grade measures used to determine the top from the bottom ranked land sites.
Typically land is rated by traffic count, access, size, shape, nearby neighbors and values, visibility and how close to its readiness for development. You could also throw in price as a variable as well. Who in real estate isn't thinking about where they would roll the dice with some of these current REO land opportunities?
For users with a need for a specific zoning or end use, land can also be ranked by its end use or current zoning. So for commercial land that is already zoned for commercial use with strong traffic counts for the area plus utilities near the site this would be closer to an A than raw land still zoned agricultural.
Hope that helps to answer your question.
Just to mix it up, prior use can also add or detract from the value. A site with an old gas station may create a negative value with potential environmental concerns.

Jul 2, 2013
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