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I am interested in purchasing a vacant lot to build my 1 family home. I have done my due diligence in terms of researching the allowable FAR, setbacks etc and am now looking into financing.

I was told by a realtor that an individual cannot mortgage a vacant lot; that it must be paid for in cash. Is that so?

Also, I am considering hiring an appraiser to appraise the lot to see if the asking price is reasonable or should I negotiate more, given the state of the current economy. The seller bought at the height of the market and is asking only $20K over his purchase price.

Does anyone have any suggestions on how to determine whether his asking price is reasonable or not? There are not any other vacant lots for sale for comps. Thanks.