We live behind a subdivision- the property all around ours is owned by the subdivision and they will start developing the land this year. We were approached by them(it's legit- I looked the company up) and offered to buy our home and land- but they want us to come up with a price. I don't know what to ask. I don't want to come off sounding greedy- but I also don't want to be way undercut on the deal too. We have almost an acre and they would tear down the house and could put up to 3 houses on it( the houses in the sub-division go from 150's to 290's) We moved in 2 years ago, so we still owe quite a bit on our loan. We don't mind selling, but wouldn't be put out if we had to stay in it longer either.
So, how do I figure out a fair price?
Thanks!
~C.
Get the report on the taxes, get an appraisal ($500).
Then take the current value +
$500 for cost of appraisal +
$1,000 for moving costs +
$60,000 for a down payment on a new home
Then round up to the nearest $5,000.
Also, they developer should cover ALL closing costs and Realtor/lawyer fees.
There are 3 different numbers to look at before determining an asking price for your home:
1- The fair market value of your house and land. I'd suggest getting 3 CMAs or appraisals from 3 different companies and take the highest estimate.
2- What it's worth to the developers. Find out what they are paying per lot for the rest of the subdivision. This should be public record, ask at the city or county for sales and tax records. You have 3 lots in your acre. This is just a starting point. Your land may be worth more than the land price to them, because their development will be more marketable, easier to subdivide, more cohesive, and simpler for construction if they don't have to work around your house and family.
3- What it's worth to you. Start looking at homes, talk to realtors and determine how much it will cost you to move. Not only that, but consider the time and effort involved in moving. If these developers want you to move, they should be willing make it worth your while, and the move should put you in a better, not worse financial position than you are in now.
Don't go into this alone. Find professionals to help you and even be willing to pay for good advice. Your home is probably your biggest investment and the money you get out of it can vary by 10's of thousands of dollars depending on how knowledgeable you are and the professional support you have.
You need to consult a real estate broker that is NOT involved or related to the subdivision company in any way, shape or form, and check on comps in your area. As you already know....they aren't interested at ALL in your house, it's the land they want. If you sell your land for a certain amount, you should assume, (just throwing this out there hypothetically) that they will get at least 3-4 times that amount once they've built other houses on it.
So....let YOUR fear of greediness go right out the window. They are looking at your land with dollar signs in their eyes.
That said, we bought a beautiful home on acreage in the country. It was so beautiful and peacefull. Across the road was nothing but rolling pastures and horses running around. We had one neighbor fairly close to the right of us and the closest on the left was way down the road.
Well, the people who had owned the pasture land for generations, sold it to a development company.
We ended up selling our house because we were going through a divorce, but about a year later, I had a friend here from out of town and we drove up to show them our old house and I couldn't believe it. There were a thousand houses, all crammed right next to each other. It wasn't the country anymore. I missed my house, but I would have been miserable living with all that building and all the people. I loved the house because of the privacy and suddenly I wasn't so sad about not living there.
I'm looking at a picture of my daughter right now at about 11, in her roller skates out in front of our house with all that beautiful land.
Anyway, if you can live with the housing going on behind you, stay put. Unless you are going to make a tidy profit, like the subdivision people will, I wouldn't be so quick to sell.
That's just my opinion.
Best wishes.
They want your house and property, let them make the first move. I'm guessing it will be a lowball offer and you can go from there (higher than you ever thought or paid). They have to make it worth your while to put three brand new houses in. They want your space. Don't rush to return phone calls. They need to make it worth your while. Good luck!
To make it worth it for you to move I would also factor in the cost for you to move, what you paid for the house and any home improvements you made. I would also check out the prices of the potential house you would buy. Of course these things don't necessarily have anything to do with the market value of your home. Your house is only worth what someone is willing to pay for it but I do think you need to make sure you are compensated for the move. It may not be worth it for you to move right now. If your house is valued significantly less than the new construction homes. Their higher value will only help the value of your home. However if your home is worth more than the new houses they will pull the value of your house down. good luck!!!
Get three realtors from three different companies and assess your house for market value. It's a free service.
Have the home and property appraised to get the current market value. It varies so greatly from place to place, and depending on what kind of land you have.
They will be making at least 600k off of your property... this is business, not friendship... do NOT worry about appearing greedy.
I agree wholeheartedly with Shane... you need a real estate broker that is completely unconnected to the developer. They will probably start off negotiations asking 1/3 higher than they expect, while the development company will offer at about 1/4 of what they expect to pay. Hire the broker. Their fees will end up being paid by the buyers.
Get a real estate agent who is very familiar with your area and give you an honest fair market value.
I do not know what area you live, but I have an awesome real estate broker who is very familiar with the DFW metroplex. He is the man you need to talk to. If you want his info let me know. I guarantee you will be very pleased with him.
B.
____@____.com
You should find a very good realtor and appraiser. You should be not only paid for the full amount you owe on your mortgage, but additional monies to be able to put a down payment on your next house and money for your inconvenience and willingness to sell. You should also start pricing other homes that you would be interested in purchasing. Don't feel like you are being greedy. It is not like you have it on the market. This developer is going to make hand over fist because he NEEDS your property in order to build additional homes to sell for a profit.
Good luck!
I would find a real estate broker - not a real estate agent - they aren't the same thing.
Find an appraiser that lives within 10 miles of your house and have the property appraised. This is the "market" value if you sold your home under legitimate circumstances. Many people have responded to sell your house for the market value.
But you situation is different - you're been asked to move, so you need to add moving expenses, finding a new house expenses (down payment and closing costs so there is no out of pocket for you), and "inconvenience expenses" (this is basically pay-ola; everybody has there price). Another thing is that you make sure that your existing mortgage is covered. In today's market, it is possible that the appraisal will be lower than the mortgage payoff. Just make sure the amount the company buys your property for also covers the mortgage and all the other things I mentioned. I would actually begin the negotioations with double the appraisal amount probably.
You actually don't need to do a full appraisal - that will run you a few hundred bucks anyway. What you need to have done is a CMA, or comparative market analysis by an accredited real estate appraisal firm. This is where someone takes a look at the listing prices vs sales prices in your area for homes similar to yours, taking into account your land size, and from there can give you a number range to start with. There are a few other variables factored in too, and will help you to ensure that you don't start too high or too low. Based on your description of your property, comparable properties might be a little hard to find, but they can do it.
You'll probably need a good realtor to help you find a new home ANYWAY, so get one to appraise your house and land. You should get just compensation for the trouble of relocating, so don't be afraid of asking too much. Be more concerned that you might ask too little.
C.:
Contact a real estate appraiser and have them come appraise your land value.
DO NOT GET SCREWED by the corporate world. If they want the land bad enough - they will pay for it.
Go through the Better Business Bureau as well as a reputable real estate office. You will need to find out what your property is worth as well as what it's going to take for you to find a new home, move and what not. This isn't a "fast deal" do NOT get suckered in and DO NOT move without knowing your options!!!
