Land Value in Chelmsford, MA

[Nick Noon]

I am in the middle of a "Live-in Flip" project.  I bought the house on March 1st and am doing some extensive rehab to the house (nights and weekends starting to wear on me, but a story for another day!)  I recently met my adjacent neighbor and after about a minute of talking he quickly came out and said, "are you interested in selling any of your land?"  I was a little caught off guard, but I told him we could talk about it.  

He wants about 800 - 1000 sf of my land that would make a straight line for his backyard.  My land kind of jogs in to his backyard, so it kind of makes sense.  I have 26,000sf so I have land to spare, and the piece he wants I probably wouldn't use much anyway.  Does anyone know what the going rate of land is in Chelmsford, MA?  Would I simply divide the $184,000 of land value that the town assessor says its worth and divide that by my total SF and get a SF cost?  It comes out to around $7.00/SF and that's kind of what I'm seeing for land for sale in the area.  

The other interesting part is that he wants to fence in his property.  I was planning on fencing in my property as well, so it would almost be a double win.  He would pay me to basically fence in my property...or at least about 40% of it.  I was thinking about making a deal where he would fence in my property along with his, which would be like an extra 275LF of fencing which would probably be in the $7,000 range.

I don't want to give my neighbor a price that would put a bad taste in his mouth, so I was wondering if anyone knew what would be a fair price for the land.  Some other things to note, he just paid $540,000 for his house a year ago, so I'm guessing he has money.  He really wants the land and is motivated as it would make his backyard make more sense.  

The town requires a $100 application fee along with a professional survey of the lot lines to be changed.  This is land transaction that the town calls a "Approval Not Required" or "ANR".  I would make my neighbor pay all lawyers fee's to change deeds, and to pay for survey since he is the one that wants the land.  

Would I be asking too much?