Thoughts/opinions on selling small piece of land

[tallyho8]

Since he already has 6 apartments there, once he buys that property he will wind up being able to rent them all out not just 4 of them, one way or another. Especially after he shows that his neighbor approves of his expansive plans and even sold him some property to expand. I hope you like living next door to 6 sets of tenants.

86' X 30' is a lot more room than is required for parking area for just one apartment.

 

[teg]

"...but some of the other neighbors have been fighting it so..."

I would never sell to him. Keep your other neighbors happy, not the developer. You'll be surprise what they will pay for it but they will lowball you first. We got $25,000 for a 100' by 20' easement. (I bought a tractor shortly there after )

 

[PA hayseed]

My neighbor and I get a request a week to sell 1 acre of land. I won't do it. When you don't control the land, you don't control the people living on the land.

My question for you has been raised by others, but I will phrase it differently. What if someone else takes over the apartments, it is a business. Say these apartments become section 8 housing, what kind of neighbors will you then have and what would that do to the resale value of your remaining property.

I have found, mainly through learning from my grandparents, when it comes to land think long term first, then short term (5-7 years). I could subdivide my property today and make some money. I can also subdivide it in 10 years and make more. Your land will only increase in value over the long term, especially if developments are headed your way. There is your retirement nest egg.

I am positive that someone in your area has already done a demogrphaic chart and movement study for your area. They knew 5 years ago where people would be at today. Check with your local business council, they may have plans in the works for 5 years from now. Lots of companies do this, McDonalds founder used to do it personally.

 

[Lucky1]

Best move, offer to buy the rentals base on the income they are now generating. You will then have the square footage to rent all six, you should then have a increase of 33 1/3 % investment, still have your property and get a favorable loan rate due to increased rental income.

 

[GregMVT]

Hi,

The guy next door dropped off his proposal about a week ago. I was unloading pig food at the time so didn't look at it until after he had left. His initial offer is for $10,000 and I haven't seen him since (he doesn't live next door). I'll let him know what I'll take, $25k, when he shows up again. There was also 1 other thing in his proposal that is unaceptable. He wanted to adjust another property line that runs along the side of our properties so he could have access to the back for parking and snow plowing. It would move the line about 6 feet closer to my chicken coop. There's a zoning ordinance in town for livestock housing that requires a 100 foot setback from a residential property line. Currently it's about 125 feet so I'd still be ok but there's no telling if the town will change that and I'd rather keep what I have there. I don't want to fight for a variance if I expand again in the future. Currently the coop is 8'x10' but last thursday I got approval from the town manager to add on to it so it will be 20'x10'. The egg sales have been pretty good and the entertainment value of the chickens is priceless!!

Scotty, yes I still get on once in a while. It seems that everything is running a month behind this year starting with sugaring season. Hopefully that will change now that fall is here and I won't be celebrating Christmas in January!!

Greg

 

[MikeD74T]

GregMVT, If you sell (I wouldn't), the agreement should also include a quality fence to be installed and maintained by the abuttor. This should also obligate future owners. Many rentors care little for the property of others, you may be able to contact the building owner now, but after he gets what he wants may be illusive. Good fences make good neighbors. MikeD74T

 

[EddieWalker]

I like the fence idea, but don't think it's realistic to put a clause in the agreement about upkeep on it. You can always delay closing until the fence is constructed to your standards, but once the deal closes, there's no way to inforce upkeep on it.

That also goes to the reason I wouldn't sell. There are too many variables for too little return. $10,000 isn't a significant amount of money, and after you take out the fees and taxes in the sale, the remainder is even less.

Will the sale price of the land affect the tax value of the rest of your land? I forget how much land you are selling, but lets say it's one acre. Will one acre of land that sells for ten grand become the comp that the tax assesor uses to determine the value of all your land? What if you sell for more? Will that affect your lands value for tax valuation?

I don't see where you have anything to gain from this, but plenty to lose. He offered you a low ball number, so he's not serious about wanting it or buying it. Thank him for his time, but explain to him he's not even close and your not interested. NEVER tell him what you will take. That just gives him a baraining number to work from.

Eddie

 

[Lloyd_E]

Greg,

My scenario is this.

6 apartments at $500 each = $3000 per month x 12 = $36,000 year
x 25 years = $900,000.

Ask for 10% $90,000.

My concerns are:
New neighbours?
What if he sells out?
Asking for closer fence line to your endeavors?
Your future enjoyment?
Your neighbours' moods based on your decision.


I would offer to sell to him. Purchase ideally what you need to improve your lot in life.

Good luck...

 

[scott_vt]

I don't see where you have anything to gain from this, but plenty to lose. He offered you a low ball number, so he's not serious about wanting it or buying it. Thank him for his time, but explain to him he's not even close and your not interested. NEVER tell him what you will take. That just gives him a baraining number to work from.

Eddie

Mornin Greg,
I agree with Eddie ! Not enough in this deal to really gain anything ! On top of that you say he wants to modify another property line, that makes it even more unattractive IMO ! I dont think this guy is really serious, because if he was he would offer $$$ accordingly ! I would walk away and enjoy things the way they are, and the way they will stay !!!

 

[tony123]

I think Lloyd was close to my line of thinking.

Look at what this does for HIS pocket. If he were to put his units on the market, he currently can base his asking price on only 4 units, so lets say $100,000 per unit= $400,000. If you sell him the land he now has 6 units at $100,000= $600,000.

I think this sale has an immediate impact on his value that is much closer to the six figure mark than it is the $10,000 he offered

You're lowballing yourself if you take $25,000.

Taking these "imaginary" numbers, I would be closer to wanting something around $75,000.

You want this to actually impact your finances. I don't see how $25,000 would be worth it from that perspective.

And remember, he has chased this land for YEARS. He wouldn't have spent that much time with it if he felt it was worth $10,000. He knows its worth bigger money, that's why he's spent the energy chasing it.