Making Offer On Land

[tallyho8]

If 2 different people own a piece of property (or anything else), and one wants to buy the other half or sell his half and one doesn't because he thinks the price isn't fair, there is a very easy way to work this out as was taught to me by an attorney.

One person gets to set the value of the property and the other person gets to decide if he wants to buy the others share for half that price or sell his share to the other for half the price.

Usually, the two parties can decide on which one will set the price and which one will decide to buy or sell. If not they flip a coin to decide who sets the price.

This works out perfect because the person setting the price can't set it too high or the other person will tell him that he has to buy him out.

He can't set the price too low because then the other person will buy him out at a bargain.

If he is wanting to be bought out then he will probably set the price a little lower than if he wants to buy the other person out.

This is 100% fair to both individuals and is the best way to dissolve a partnership without either party being able to claim that the other party took advantage of them.

 

[Dargo]

If 2 different people own a piece of property (or anything else), and one wants to buy the other half or sell his half and one doesn't because he thinks the price isn't fair, there is a very easy way to work this out as was taught to me by an attorney.

One person gets to set the value of the property and the other person gets to decide if he wants to buy the others share for half that price or sell his share to the other for half the price.

Usually, the two parties can decide on which one will set the price and which one will decide to buy or sell. If not they flip a coin to decide who sets the price.

This works out perfect because the person setting the price can't set it too high or the other person will tell him that he has to buy him out.

He can't set the price too low because then the other person will buy him out at a bargain.

If he is wanting to be bought out then he will probably set the price a little lower than if he wants to buy the other person out.

This is 100% fair to both individuals and is the best way to dissolve a partnership without either party being able to claim that the other party took advantage of them.

I'm not real sure it is that easy. After wasting a year of my time trying to purchase some property it became painfully clear to me that 1)people change their minds, 2) people lie, 3) you cannot ever force someone to sell who decides they don't want to sell (unless, of course, you are the government - imminent domain). I literally went through months and months of pricing. Agreeing to prices. Prices changing. Agreeing to terms. Terms being changed. And, finally, some who have partial ownership refusing to sell.

I have to assume (which means I don't know) that it varies by state, but where I live, if a person doesn't want to sell their portion or interest in some property you may not, ever, force them to sell. What you can do is sell all of the other remaining portions or interests. However, that leaves the one who refused to sell as partial owner of the property you just purchased and allows them to have nearly equal rights to the property as you enjoy as the person who just bought (most of) the property.

In my mind, I have no interest whatsoever in owning 'most' of some property with someone else having rights to my property and a partial interest in it. It was likened to me as akin to lake rights. If you own all but 1/16 of a 3 acre lake, the person or persons owning that 1/16 have the right to enjoy the entire lake as if they own it. That just doesn't sound like a very equitable situation to me.

 

[tallyho8]

I'm sure the laws are different in different states, but here is Louisiana, if you are in a partnership on a property, and one person wants to sell his portion, he can enforce a forced sale. The other person can either buy his portion or both portions will be put up for sale.

 

[rox]

Dargo,
Nice to see you posting on TBN. I just hung up woth the sister and told her in french, "My husband only wants to pay 4,000 Euros I said 5,000 Euros now I will offer 5,000 euros and ten liters of olive oil to each. There are 3 people right? You can take five liters this year and 5 liters next year or how ever you want. Since 2005 we have won 13 Gold Medals and have been 3 times best in shoe. It is excellent olive oil. This is my final offer. 5,000 euros and 10 liters of olive oil each. " She said she would talk to her brother. So we will see....

 

[EddieWalker]

There was a very large ranch for sale near hear with an asking price of $6,000 per acre. I didn't think it was worth anything close to that, and from how long it sat on the market, I don't think too many others thought that either. From what I was told, it finally sold for $1,500 an acre last year.

The neighbor of that same property also has a large ranch. He had it listed for $4,000 an acre before the other one listed for $6,000 an acre. Then he raised the price of his to $6,000 an acre. It's still for sale at that price, even though the other, larger property sold for so much less.

Land is only worth what somebody else is willing to pay for it.

Eddie

 

[tallyho8]

There are 40 commercial acres for sale a mile from my house. The man put it up for sale in 1962 for $10,000 an acre when it was only worth $5000 an acre. He has raised the price every year since. Now he wants $100,000 per acre and it's only worth about $75,000 an acre.

I don't think he really wants to sell it.

 

[Bird]

Before I moved back to town, there was a ranch in my area for sale for $4 million. When it didn't sell, after quite some time, they auctioned it off and sold it for about $2 million.

 

[PILOON]

If 2 different people own a piece of property (or anything else), and one wants to buy the other half or sell his half and one doesn't because he thinks the price isn't fair, there is a very easy way to work this out as was taught to me by an attorney.

One person gets to set the value of the property and the other person gets to decide if he wants to buy the others share for half that price or sell his share to the other for half the price.

Usually, the two parties can decide on which one will set the price and which one will decide to buy or sell. If not they flip a coin to decide who sets the price.

This works out perfect because the person setting the price can't set it too high or the other person will tell him that he has to buy him out.

He can't set the price too low because then the other person will buy him out at a bargain.

If he is wanting to be bought out then he will probably set the price a little lower than if he wants to buy the other person out.

This is 100% fair to both individuals and is the best way to dissolve a partnership without either party being able to claim that the other party took advantage of them.

Went thru a similar situation.

Had a partner, shares were actually 70/30.

Was 'recession times' late '80's.
Partner says sales won't support both of us and if he'd sell and works his way up to stating he'd keep company car, 1 yrs salary and some odds and sods if he'd sell to me, and what think I ? would I accept same type of deal.

Then he sorta drags on, but I knew he really wanted out, and I really wanted the 'challange', so to speak.

So I pulled a quarter from my pocket, had him call the toss and I won the toss!

So since it was my win (option) (his comment was darn! I optioned to give him the choice.
AKA, Since I win I give you the choice.

He immediately said I SELL!

In fact I had another friend that was forever itching to get into the business and had just accepted a retirement 'package'.

Called him, had him pay the year salary in exchange for 50% of the shares.
I now had 50% whereas before I had only 30%.

By complete fluke (because of an airline strike) we had us an absolute bumper year and simply were in the right place and the right time.

PS; I cut that quarter in half and we each kept 1/2 as 'charms'.