Whats the relationship between finished house price and value of the site

[runner]

This is not a property price speculation!
Was wondering if there is any 'rule of thumb' for working out the likely approx relationship between a site cost and the value of a finished, ready to live in house, fully completed internally and externally?
Using round figures, say the completed house was worth 1M, the cost of building and completion internally/externally was 400K.
Whats the value of the site?

 

[ryaner]

This is not a property price speculation!
Was wondering if there is any 'rule of thumb' for working out the likely approx relationship between a site cost and the value of a finished, ready to live in house, fully completed internally and externally?
Using round figures, say the completed house was worth 1M, the cost of building and completion internally/externally was 400K.
Whats the value of the site?

Using your maths, the site is worth 1M (cost of everything) - 400 (cost to build), so 600k.
Unfortunately house prices are never that simple and never just a function of build cost + site cost.

 

[kkelliher]

This is not a property price speculation!
Was wondering if there is any 'rule of thumb' for working out the likely approx relationship between a site cost and the value of a finished, ready to live in house, fully completed internally and externally?
Using round figures, say the completed house was worth 1M, the cost of building and completion internally/externally was 400K.
Whats the value of the site?

100% no relationship whatsoever.

Every house if different, every house if finished differently and to different specifications. There is also alot of differences as time goes by as materials change and prices fluctuate.

The location, aspect, positioning and views, local services, infrastructure and others will dictate the land cost whilst the size of the property, number of storeys, land type and level, standard of finish, services, heating, etc etc will dictate the house cost

 

[Vanilla]

You have to buy the site before you build, so surely the site cost is known? Build cost is known, the end value is the unknown quantity.

 

[runner]

Thanks for all the replies, much appreciated.
The first one is probably too simplistic as I can work out that sum myself.
The second is trying to factor in all the unknowns which while absolutely correct in principle, it has to make too many assumptions regarding variables, so that is why I was trying to simplify the question by just assuming an end selling price, and a fixed cost price.
If I make the latter 2 predictions myself, at my own risk obviously, I want to know what a site is really worth and what to offer.

No 3, is obviously correct also.
I was looking for some rule of thumb to compute what to offer for the site.
There is probably no such thing!
Thanks all round.

 

[Vanilla]

Check the house prices ( and if possible, keep your ear to the ground for what they are actually selling for) for houses of a similar nature to that you wish to build. Check the build cost. First minus the second is the maximum you should pay. You also have to bear in mind further potential house price falls. The minimum will be up to what the Vendors will accept.