Negotiate to below appraised value

[Jason Zhang]

I'm preparing myself to negotiate with a landowner. He has paid to do an appraisal. However, it's vacant land, which is very subjective. I know what I'm going to get selling the finished pad, and how much to develop. The land price I can afford is about 1 million below the appraisal. I'm wondering if anyone has encountered that before, and any tips and thoughts on negotiating are welcomed! Thank you!!

[Brian Ploszay]

Appraisals do not always equate with market value.  Also, vacant land is where appraisers often get it wrong, because investors don't buy off of square footage and looking at other comps.   They buy based upon a more complex formula of construction costs and end sales.  

You're going to have to prepare some serious negotiating techniques.   Landowners often had their properties a long time and often are difficult to deal with.  Good luck.