Dirt Is Where It's At: Why Land Size and Zoning Are the Key

Dirt. That's where it's at. When I look at a property, the house is almost the last thing I care about — what matters is the size of the land underneath it and what the zoning lets you do with it.

Here's a perfect example. Picture an ordinary house sitting on a lot, parked between much bigger buildings. Most people drive past and see an old house. What I see is the zoning: on a lot like that, you can build an apartment building. The house is just what's currently occupying land that's allowed to become something much bigger.

That changes how you value the property completely. A house priced as a house can actually be priced like future development land — and if the seller and other buyers are only seeing the house, you may be the only one pricing in what the dirt can become.

So train your eye. When you see a modest house sitting between larger buildings, or on an unusually big lot, ask the zoning question before you ask anything about the kitchen. The size of the land and its zoning are the key. Houses can be torn down. Dirt, and what you're allowed to build on it, is the real asset.

Key takeaways

  • The size of the land and its zoning matter more than the house sitting on it.
  • Some ordinary-looking houses sit on lots where you're allowed to build an apartment building.
  • A house parked between bigger buildings is a clue the land may support much more.
  • Value the dirt for what it can become, not just for what's on it today.

Watch the original Short: https://www.youtube.com/shorts/z8128Q8I2ic

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