How much would you offer for lots?

dreambuilderFebruary 19, 2013

Two adjoining lots, both assessed at $20,055 but asking price of $30,000 and $35,000. The development was started in 1994 and still has a couple lots left and developer actually went bankrupt due to a severe injury and development projects not taking off. Real estate agent says developer will go lower if we buy both (they are next to each other so it would be huge if we combined them). How much would you offer--real estate agent says $55,000? Last lot sold in Nov. 2011 for $34,000 similiar size. Each are approximately .35 acres in size. Two identical lots sold for $30,000 a piece in 2007.

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What is the fair market value of the lots? Without knowing that, how can you decide how much to offer?

    Bookmark   February 19, 2013 at 9:06PM
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Well, if similar lots sold for $34,00 in 2011 then assuming the market changed $55,000 is likely a reasonable place to start.

    Bookmark   February 19, 2013 at 9:25PM
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The assessed value doesn't mean anything for this. What the lots actually sell for is meaningful. I agree with Laura12 -- 55,000 sounds reasonable to start, especially if the developer isn't in the best position currently.

    Bookmark   February 19, 2013 at 9:35PM
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Before you finalize your offer, do you know what it will take to get approval to build on the lots? Are there any required improvement costs, taxes, levies, fees, etc., in order to get a building permit? Are there any easements, zoning or planning restrictions or limitations that would make the lots challenging to build on? Are there any leins on the properties? I'd certainly check with the local regulatory agency to see if they have any information on the properties.

Good luck with your project.

    Bookmark   February 19, 2013 at 10:09PM
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I called and spoke with the register of deeds at length today--and got information on everyone who lives in the neighborhood as well as what they paid, etc. so I would have an idea--she did not mention any liens and I'm pretty sure they are the people who record liens although of course we will check for clean title. I got the covenants, they look fine. What local regulatory agency would I call--the building permit people?

    Bookmark   February 19, 2013 at 10:17PM
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