Thoughts/opinions on selling small piece of land

[n8wrl]

I think Podunk nailed it - it doesn't matter what the land is 'worth' - only what it is 'worth' to him, and to you. Maybe you can pay off your mortage all at once! How bad does it want that 4th tenent?

$100k for 24 acres? I'd get that loan. You may have just bought your baby's college education.

We just bought 12 adjoining acres for a total of 25 now. Two new subs are going in within 5 miles. I hate the idea of the de-ruralization (if that's a word) but I'm hoping to cash out in ten or so years and move out further.

Advice is worth what you pay for it.

-Brian

 

[Kendall69]

I haven't read all the post, perhaps someone has suggested this - triple or quadruple the price to your land because by selling to your neighbor, you will triple or quadruple his value. He ain't doing you any favors, by buying your land.
Also this guy may get your land and get his variance and be in compliance THEN SELL, and you may end up with a jerk for a neighbor who wants to put up a mall?

Take it slow, and screw this guy to the wall.

 

[ultrarunner]

I can see why your cautious... after all who needs ill will with no gain?

My brother was in the same situation for an addition that he wanted to do to his home... he got along well with his neighbor and said that he would either have to add on or move because the family was getting bigger.

My brother figured out what he would be willing to pay, put it in writing and asked his neighbors if they would consider his offer over the weekend...

The neighbor had no intentions of selling but were a little overwhelmed by the offer and offered to split 50/50 the associated costs... that was 3 years ago and it was a win/win for all.

So as not to offend anyone, I would tell your neighbor that you have no plans to sell, but that you would be willing to consider his offer reduced to writing... surely, your neighbor has an idea of what he is willing to pay and why should you have to do all the work... let him give you his best shot...

 

[MikeD74T]

GregMVT, Did you buy 13 acres to have more neighbors or less? Your neighboring landowner made a bad assumption regarding a variance. Variances are for hardship cases not economic conveniences. Consider also what the next owner of his property might be like. It's possible to sell him some of your land now but it will be impossible to ever buy it back if things don't work out. In your shoes I'd offer the whole 13 acres or nothing. If he gets the approval for the 4th apartment & still can prove hardship later you may end up with 6 neighbors instead of 3. MikeD74T

 

[riptides]

The problem with both scenarios is they they eventually get to the tax office and can have a bad affect on oneself.

-Mike Z.

 

[GregMVT]

Thanks for the replys. I saw him the other night and told him to make an offer. He said that it would be worth a years rent for him, not sure what he charges a month for rent, if he meant for all the apartments in the building or just the new one. Anyways the figure I have in mind is is $25,000. I have told him the last 2-3 years that I wasn't interested in selling. Leasing the land back would not be an option. He wasn't to use it for parking for the 4th apartment and have a place to plow snow in the winter so once it's gone I loose access to it. I hadn't thought about the capital gains tax on it. If he does go for it I'll push the sale into next year so I'll have time to make some changes in my retirement account at work so the impact won't be as bad.

Thanks again.

Greg

 

[randy41]

i'm not sure what you paid for your land originally but theres no reason why you couldn't allocate your cost more heavily to the parcel being sold thereby reducing or eliminating the gain on the sale and the resulting cap gains tax.

 

[scott_vt]

Anyways the figure I have in mind is is $25,000. I have told him the last 2-3 years that I wasn't interested in selling.

Thanks again.

Greg

Mornin Greg,
Good to hear you on again ! Im thinking like you, I wouldnt do it unless I was going to benefit in a huge way !!! Once its gone its really gone, and your stuck with your new neighbor like it or not ! Get your price or walk away IMHO !

 

[MrJimi]

If you sell a small piece to him, he makes out big time and he said he would when he said it was worth a years rent to him, that tells me that it would be paid in full for him in one year ? and your left with the rest of the land that you mentioned was not so favorable and you have to pay taxes etc on it for something that you are not happy with.
I would make him a whole parcel price and be done with it and he could make a small park for his tenants or whatever or bird watch area. And if you finance it for him, you will have an income coming in for a long time
I would do that
Jim

 

[riptides]

An interesting sidebar to this topic. A while back in some land hearings it was brought up that it is a rip-off to the current landowners selling to developers. They develope the property and can get huge rewards from doing that. In the case of commerical property development, the rewards can be an order of magnitude higher, and sustainable.

I don't know the exact wording or terminology for the wording they used. But you only have one shot to take, so shoot for the moon.

I'll have to dig up the story, I think based in Mass. or Conn. about condemnation of private property for the public good. Chilling.

-Mike Z.