How much for a piece of land?

edwara

hi need some advice not sue if this is the right forum so please move if there is amore suitable one!

We have been offered an extra piece of land by a neighbour. the history is our neighbours bought an extra piece of garden 18months ago now the neighbours of the people who sold it have offered us a piece of their garden. The piece of land is bigger possibly up to 3 times (I think more like 2x) but is in a poor state needs clearing has a useless swimming pool on it (hazard for us as we have young kids) and they have asked us for over double what our neighbours paid.

I think it is a ridiculous price they are asking for several reasons.

1. The market has changed considerable i.e. fallen and it ain't so easy to get mortages as well
2. the piece of land, whilst adding value, won’t make as much difference to our property as it has to our neighbours because we already have a large garden.
3. No access so not a building plot and for a variety of reasons no one else will buy it

The chap offering has already told us how broke they are (wife has had to go out to work) and that the land is a pain to them as they don't use it and it is an eyesore.

In my head I have a figure of about 1/4 of what they are asking maybe going up to what our neighbours paid. Local estate agent says there is no real way to value this as it is only really worth what we will pay.

Any suggestions on how we negotiate them down?

Premier_2

Supply & demand.

The problem in this case is only they can sell you that particular piece of land.

By the sounds of it, you don't really want it though do you? I mean you've already expressed how large your garden is (so any increase probably won't add much value to your property), that the land is in a poor state and that there's a swimming pool on it that could be a danger to your young children.

Leave well alone and keep your money for something that does interest you

Incisor

As well as looking at how much it adds to yours, look at how much it takes from theirs. If it takes less off theirs than it adds to yours, base a value figure on what it takes from theirs. And vice versa. Assume the land is cleared and down to grass and deduct the cost of getting the land to that state. Factor in your legal costs too, then decide how much over the odds you are prepared to pay.

Then decide how much you will pay, which should be less than the lower of the 2 values, unless you really want the land and will pay a premium for it. Then make an opening offer, which is less.

You don't need to explain or justify your offer, the less you say the better. You just want to talk about price. So no need to do anything about negotiating down, just make your bid, if it is refused, indicate what you are prepared to go to and be prepared to walk away.

Tassotti

Alternatively, grab it for a bargain price...Cover the pool so it is child-safe.

When your kids are old enough to enjoy it, re-open pool and WOW!

What an opportunity you have

dopester

edwara wrote: »

Local estate agent says there is no real way to value this as it is only really worth what we will pay.

Seems the correct answer to me - and it seems you, or perhaps another neighbour, are the only realistic buyers.

Who else could they possibly sell it to? Who, expect yourself or another neighbour, with reasonable access to it, would want to buy it - unless at the most distressed give-away price?

Would I rather have £1000 in the bank earning a return, or a £1000 plot of land around someone's house which doesn't have its own access?

Answer these questions and you might come to understand how land-values can crash very hard in serious economic downturns.

If you want it, if you know they are struggling, I don't see why you have to rush.

IT_nerd

Buy your kids skateboards and look at this swimming pool land as an investment for the future. Look how much tony hawk makes, and he started like that

lincroft1710

If we knew how much they were asking and how large plot is could offer much better advice.