Suffolk, VA · Member since 2018 · 2 posts · 0 votes
We were recently contacted by a real estate developer who desires to purchase a portion of our land(roughly 13'x210', all along the road). We have 2.25 acres. They need this land so they can add turn lanes to our road. They will be building a development across the street and they are required to add turn lanes due to the size. The development will be 170 units(combination of single family homes and townhomes). When they sat down with my wife and I to show us the plans, they said they were hoping to give us 10K for the piece of property.
I am hoping that someone has experience in this occuring and amount of money received. In discussions with our realtor and a friend who owns a development company, their offer is extremely low.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
2y
This post: https://www.biggerpockets.com/forums/32/topics/1148626-neigh... has very similar info to what you're looking for. Pursue an appraisal and then ask for at least that value if not even a bit extra...if you refuse they have to go to court to condemn your property...not doing that has value to them.
Find a local land use atty who is familiar with these type of cases and lean on their experience.
Suffolk, VA · Member since 2018 · 2 posts · 0 votes
2y
Appreciate the reply. We are in talks with an attorney in our area for representation on this.
From they way they talked when they showed us the plans, they need on land for this development to occur. As far as land value, it is probably only around 2K for the amount of land they want to obtain. I think the hard part to assess is change in scenery. We purchased this house based on it being near town, but moderately rural. With this development added, we lose some of the rural benefits we enjoyed, add more traffic and have to deal with road and home construction for a while.
Appreciate the reply. We are in talks with an attorney in our area for representation on this.
From they way they talked when they showed us the plans, they need on land for this development to occur. As far as land value, it is probably only around 2K for the amount of land they want to obtain. I think the hard part to assess is change in scenery. We purchased this house based on it being near town, but moderately rural. With this development added, we lose some of the rural benefits we enjoyed, add more traffic and have to deal with road and home construction for a while.
Exactly and all of that plays into the price you're willing to sell the additional frontage for to allow for the new lane. There are other things you can negotiate like them building you a privacy screen wall and adding landscape. That helps mitigate the noise and visual impacts. If there is other work you'd like done on your property or a new driveway you can negotiate that into the purchase cost too. Also make sure your tax basis is reduced as part of the sale since your land is being reduced.