Back Into Lot Value Calculator
Back into a lot value by subtracting construction costs, soft costs, closing costs, and desired profit from the estimated sale price.
Home Size and Estimated Cost Per Foot
Home Price
$
Home Size SQFT
Build Cost / SQFT
$
Soft Costs
Plans, Permits & Fees
$
Financing Costs
$
Misc Soft Costs
$
Total Soft Costs
$
175,000
Construction Costs
Site Prep
$
Home Build Cost
$
1,080,000
Landscaping & Other
$
Total Hard Costs
$
1,110,000
Total Cost Before Closing
$
1,550,000
Closing Costs
Broker Commissions
$
100,000
%
Excise Tax, Title, Escrow, Misc.
$
50,000
%
Total Closing Costs
$
150,000
Totals
Grand Total Costs
$
1,700,000
Target Gross Profit
$
300,000
%
LOT VALUE →
$
265,000
This Calculator Estimates the Value of a Lot Using the Method Home Builders Use
When a spec home builder is evaluating the purchase of a lot, they make a series of project estimates and use these estimates along with a required profit margin to back-into an estimated lot value.
Start with the expected sale price, subtract construction costs (materials, labor, site prep), soft costs (permits, financing, miscellaneous), closing costs (commissions, excise tax), and your target profit margin. What remains is the maximum you should pay for the lot.
Adjust any input value and the calculator will recalculate instantly. Editable fields are shown in accent color.