Need help on an offer for lot
Our neighbor has many times expressed interest in selling his land which is next to our home. We have told him that we'd like to buy it. We asked his price and he has said make him an offer.
Just a few details about the property: first of all we are thinking of asking him to finance the deal, we are not able to make a cash offer. It is 1/2 acre, it has an old mobile home on it which is probably not livable, many shingles have come off of the roof and even he has admitted it rains inside, so our offer will not include the mobile home. Other than that it only has 2 very old sheds. There is someone in our town that sells lots, so I called just to get a price on what his going rates are. His lots are 1 acre 32,900 he finances with $5000 down at 12.75%. His area is just a little bit nicer than ours. We are considering offering him 22,000 with $5000 down and 10% interest. Is this a crazy offer too low or too high? I've never done this before so we would have an attorney draw up the deal. I just don't want to insult him by offering too little but I also don't want to pay too much.This is IF he agrees to financing it. Any and all feedback would be greatly appreciated.