Listing Agents- C'mon if you don't know don't say!!

[Emily Dixon]

I got very excited yesterday because of a listing agent. But it turned out he didn't know what he was talking about so now we have to adjust our offer.

So I am sitting here with so many projects on pending because of offers and negotiations and I was doing my daily 3 hour MLS scour. I found a nice big 17k sf lot in an area I like very much with about an avg $214/sf sale price of homes.

I called the listing agent, it had been on market 60 days sitting there and I wanted to find out the details. He said we could build a duplex there. I was instantly excited!! I still had to do my due diligence and call the county building department. But we went ahead and offered full price on the lot in cash pending me talking to county.

Well well well what a waste of time. County says it is zoned A1 (Agricultural low density) and we are not allowed to build a duplex there. I asked them about subdividing the lot for two sfr and he said we are .087 short of being able to subdive (AAAAAAHHHHHH) Man! I am pretty mad, because I feel listing agents should not just take the word of the owners of the property, it wastes a lot of peoples time. Yes, my vent for the day.

So today I have to recalculate all my costs for a sfr and pretty sure the lot is overpriced. It already has utilities which is primo for me but if I can only build one unit suddenly all the profit goes by by. I am going to try to make it work, that is what I am paid to do, make projects equitable where no one else can. A tiny old house next door to the lot just sold for 285000. But this big lot is priced at 245000. I just do not see without being able to build 2 houses that I will get any profit for my investors. I have a feeling we will have to pass on this one. County did say I can get a CUP for a duplex for about 12k in entitlements. Duplexes are HOT in this area right now!! Problem is all duplexes in area selling are old and this would be a brand new one so hard to gauge market. Generally in any investment project my rules are as follows: Build to sell fast (which is price below market), and do not take projects with less then 40k profit. So we may go back and change offer. I just really like the location of this one. Very close to my daughters high school, I would love to manage a construction project there!! We will see. I just have to get off bigger pockets and go back to the drawing board on this one ... But there I go getting emotional about a piece of land again LOL
I just love bigger pockets... Okay back to work. Hope everyone is having a good day!