TOP SCORE |
EXCELLENT |
GOOD |
FAIR |
POOR |
5 points |
5 |
3-4 |
1-2 |
0 |
Top Score |
Points | |
Price & Terms Unique Appeal Location Waterfront Potable Water Usable Land Soil Conditions (see example #3) Privacy Access & Utilities Upgrade Costs Resale Potential |
30 |
|
TOTAL |
100 |
EXAMPLE #1: After years of fruitless searching, you stumble on the place of your dreams. It's perfect -- in the middle of a National Forest with a trout stream running through it. You can steal it. And it's in the exact LOCATION you want. You quickly score 30 points for PRICE & TERMS, 20 points for UNIQUE APPEAL, and 10 points for LOCATION. More investigation tells you that the Forest Service will not let you have access for a dwelling. Nor can you drill a well, cut any trees, or build a road. You score 5 points for PRIVACY, 0 points for the other components. Your score totals 65. A likely winner is actually a loser.
EXAMPLE #2: You're new to the area, so you don't know land values. You find a desirable piece of waterfront property that scores 40, without counting PRICE & TERMS. Further investigation shows that it will only appraise out at 60% of the asking price. Unless you can cut a deal on the price, you will come up with a score of less than 70. A potential loser.
EXAMPLE #3: You strike a deal on a one acre lot that you score at 85. You feel the lot is perfect for the mobile home you are planning to buy. Come to find out that the land area is too small to support any approved home sewage disposal system. Big score. Still a loser.
Copyright 1999 B.K. Haynes Corp.