Developer wants to buy my property

[Laurent Vincent Walker]

Hello Everyone,

A few years ago I bought a fixer upper home for 250k. Homes fully renovated around me go anywhere from 400-650. Bought the home to be my forever home because I have strong roots here and my family is already. A developer approached me because I am very close to everything. There is even commercial across the street. I am up for selling if the price is right but I really don't know what to ask for. I am expecting a low ball offer shortly. Looking for target prices,questions I should ask him ect. 

Thank you in advance.

[Will Fraser]

Hi @Laurent Vincent Walker!  Welcome to the Bigger Pockets forums!  

I would flip this question around and evaluate this from your side:  if you view this as your forever home and it truly has that level of sentimental value and functional value to you and your family and staying there for the long haul is a desirable thing, then you'll find that you have an extremely desirable BATNA (best alternative to a negotiated agreement - from the book Getting To Yes) and you'll likely be best served by setting the terms for what you can and will consider in the negotiations with the developer.

I primarily recommend you setting these terms (for example: go to the developer and have a frank conversation about the price you'll sell at and let him/her know that this its not a high-ball/low-ball game to you, but you want to communicate the best monetary way for them to achieve this win at a number that is workable to you) because allowing or requiring the developer to set the initial offer amount is going to anchor them on this price.  If they offer $250k because you've just got to try, and then you come back and tell them that your true bottom dollar is $450k, then they may well have become attached enough to their $250k offer value that they just can't bring themselves to $450k.  To the counter, if you began by sharing with the developer that you're value is $450k because (insert BATNA)", then the developer has a real number to evaluate and they may psychologically be in a place to like that number instead of feeling like it is "just too far off."

So, I think the work here starts with your side of the table and defining what needs to be true for you to accept a negotiated agreement.  Go out there and get it, Luarent!