If you followed me down the Pocomoke river in my last blog… you can see how a river might affect land prices as it widens and becomes navigable.
When the river began it was a drainage ditch bordering a soybean field, but it ended as a grand river in southwestern Worcester County (with magnificent homes gracing its shores) before flowing into the Pocomoke Sound.
Land values vary considerably from town to town
An acre of farmland near the start of the river is approximately $7,000 versus a lot at the other end of the river in Pocomoke for $55,000. View Listing
This is a prime example of how property value is affected by close proximity to any specific attraction or area.
Property values fluctuate greatly in just a matter of a mile or two. One end of the county may be much more valuable than the other end. In fact, in Ocean City, value can increase within a matter of feet. Oceanfront is considerably more expensive that ocean block, for example. While Ocean City is a drastic example, it shows how land/property costs and values vary.
Investment in land and building a home
For anyone interested in building a new home, the resale value of the home is a prime consideration. Keep in mind: Where the cost of land is low, chances are the resale will also be lower.
If you built a 1400 square foot, three bedroom house in Snow Hill and the exact same home in Berlin, the resale value of each home would be vastly different. This is true even if both houses were equally appointed (both had water and sewage connection, etc.).
For this example, let’s assume the home you built, in both locations, cost $100,000.
The home in Snow Hill would likely sell for around $200,000. View Listing
The equivalent home in the Berlin Area would likely be worth $395,000. View Listing
However, the cost of the lot would be greater in Berlin than in Snow Hill.
A residential lot in Snow Hill will run around $45,000. View Listing A build-able lot in Berlin is $75,000 and up. View Listings Therefore, the profit from the Snow Hill property would be approximately $55,000 vs. the profit from Berlin of $220,000.
Berlin would be the better investment, even though the requirement of initial funds would be much greater.
Please do your homework before investing, as property values can vary depending upon proximity to rivers, ocean, bay, schools, shopping centers, parks, playgrounds, major highways, etc.
A call to your local REALTOR may be a good first step. They will be happy to assist you in your quest for information on value of any property you may find interesting.
