Should I buy land surrounding my property?

Question

I have owned a house for about 17 years. It is in the middle of four other lots that are owned by one family. They have been used as rentals or have stood vacant/ filled with junk for longer than I have been there. The family is now selling the entirety at one price. The houses are not worth much, but the land is in a great area of the city. I have always wanted to own all of the land and/or sell to a developer if the day ever came. My quandary is that now it is presenting itself and I don't know if it is better to buy the properties with the hope of completing the package with my house or see if a developer will buy it and then buy me out. My trepidation is that someone will buy it and it will remain just a great lot in a great spot with no future development of the land and that I am missing out on an opportunity.

Michael Guzik · Answer

You would have to check with your city or municipality's zoning for a specific answer on that. In San Antonio it would include it if it is a zoned a certain type of residential. One way to see where future development is going is to simply drive the area and see where developers are building or buying. Or just google " (insert city/area name) future development/future housing/future communities" and see if there are any published articles or posts by your city/county/government.

Best case scenario is to play the emotional card and use your personal relationship/neighbor status to your advantage. You have something no one else can offer! EXPERIENCE of living there you know the community, neighbors and ins and outs. USE THAT and remind them that they aren't just selling to anyone they are selling to someone who cares and has lived there and doesn't plan to live anywhere else.

Jean-Marie Poth · Answer

Thank you, Michael! If the properties are zoned residential, does that include row houses, town houses? If future development is anticipated, how do I figure all of that out? I actually have an offer going, just trying to figure out a safe price.

Michael Guzik · Answer

@Jean-Marie Poth This is definitely exciting and could be a very interesting opportunity! First I would check and see what the market is saying, what are homes or developments selling for per sqft more or less? How long are these homes taking to sell? Does the city/neighborhood/area need a certain type of housing? What is the land zoned? Will the current zoning or restrictions allow for the development of this needed housing? Where is the "path of progress" in that area? These are things that developers will be considering so start thinking about them.