What Is Your Land Worth to a Developer?

February17,2026

Sell Land to a Developer

If you own land in Chicago — or a property with redevelopment potential — its value to a developer may be very different from what a traditional residential buyer would pay.

Developers evaluate land based on future build potential, not just current condition. Zoning, density, unit count, mixed-use flexibility, and projected rents all factor into pricing.

Point B Properties acquires land and redevelopment sites for 2–80 unit multifamily and mixed-use projects across Chicago. We underwrite based on:

Zoning and allowable density
Unit count potential
NOI projections (for income properties)
Construction cost feasibility
Retail viability (if mixed-use)
Timeline and entitlement risk

If you’re considering selling land to a developer, here’s what you should know.

How Much Will a Developer Pay for My Land?

The short answer: it depends on what can be built.

Developers do not price land based on comparable home sales. Instead, we calculate land value using a residual land value approach:

Projected finished value
minus construction costs
minus soft costs
minus financing
minus required profit margin
= Maximum land price

For example:

If a 20-unit building could be built and stabilized at a projected value of $6,000,000, and total development cost is $4,800,000, the remaining $1,200,000 represents the maximum allowable land value (before adjusting for risk).

This is why some lots sell for far more than neighboring properties — density drives value.

Key factors that affect what a developer will pay:

Zoning classification (B1, B2, RM, etc.)
Lot size and frontage
Transit proximity
Ability to build 3+ stories
Parking requirements
Retail demand (for mixed-use corridors)
Existing tenants or demolition costs

If your property currently has a small structure but zoning allows greater density, it may be worth more to a developer than to a homeowner.

👉 For buildings with 2–80 units, see our
Chicago Multifamily Valuation Guide
(/how-much-is-my-property-worth-to-a-developer-a-complete-guide-for-2026/)

Benefits of Selling to a Developer (vs. Traditional Listing)

Selling land or redevelopment property through a broker is one option. Selling directly to a developer is another.

Here are the practical differences:

1. Pricing Based on Potential, Not Cosmetics

A retail buyer evaluates finishes.
A developer evaluates zoning and density.

If your land supports additional units or mixed-use redevelopment, that upside may not be captured in a standard MLS listing.

2. As-Is Purchase

Developers typically purchase:

Vacant land
Obsolete structures
Tenant-occupied buildings
Buildings with violations
Mixed-use assets with underperforming retail

You don’t need to renovate or reposition before selling.

3. Fewer Showings, Less Disruption

No open houses.
No constant tours.
No waiting for retail mortgage approval.

For multifamily sellers, this means less disruption to tenants.

4. Faster, More Certain Close

Traditional listings depend on:

Buyer financing
Appraisals
Retail underwriting

Developer purchases are underwritten differently and often close with fewer contingencies.

5. Off-Market Confidentiality

Some sellers prefer not to publicly list redevelopment sites. Direct-to-developer sales can be structured quietly.

For owners of 5–80 unit buildings or mixed-use properties, see:
/sell-multifamily-chicago/

Should I Sell to a Developer or List Traditionally?

This depends on three variables:

1. Is Your Property Primarily a “Home” or a “Development Site”?

If your property’s highest value comes from density or redevelopment, a developer may be the natural buyer.

If it’s primarily a finished residential home in turnkey condition, retail listing may yield higher pricing.

2. Timeline

If you need:

Speed
Certainty
As-is sale

Developer sales often make sense.

If you have:

No time pressure
Ability to stage/prepare
Desire to maximize retail exposure

Listing may be appropriate.

3. Risk Tolerance

Developer pricing accounts for risk:

Zoning uncertainty
Construction cost volatility
Market shifts

Some sellers prefer accepting a clean offer rather than gambling on peak market timing.

At Point B, we will tell you directly whether your property is better suited for:

Developer acquisition
Retail listing
Or repositioning before sale

If it’s not a fit for us, we’ll say so.

👉 You can also review how we value multifamily buildings here:
/what-is-my-apartment-building-worth-in-todays-market/

FAQ — Selling Land to a Developer in Chicago

How much will a developer pay for land?

Developers calculate land value using residual land value — the projected finished value of a development minus total costs and required profit margin. Zoning and density are the largest drivers.

Do developers pay more than market value?

Sometimes. If zoning allows higher density than comparable home sales reflect, developer pricing may exceed traditional residential market pricing.

How do developers calculate property value?

For land: residual land value.
For 5+ unit buildings: NOI and cap rate analysis.
For mixed-use: blended residential + retail underwriting.

Is selling to a developer better than listing?

It depends on condition, zoning potential, timeline, and risk tolerance. Developer sales prioritize speed and feasibility over retail staging.

What types of buildings do developers buy?

We evaluate:

Vacant land
2–80 unit multifamily
Mixed-use buildings
Church or adaptive reuse sites
Obsolete commercial structures

Do developers buy mixed-use buildings?

Yes. Especially corridor retail with residential above, where density or repositioning potential exists.

Can I sell a 10–20 unit building directly to a developer?

Yes. Many multifamily owners sell directly to developers for faster closings and fewer contingencies.

Closing Section

Considering Selling Land or a Redevelopment Property in Chicago?

If your property has development potential, the only way to know its true value is through feasibility underwriting — not just comparable sales.