Advice on 5 acre land

[Anthony Brown Jr.]

Here is the potential deal…

The homeowner lives in Butler, Pa on a farm but owns 5 acres in O’Hara Township, Pa with 2 properties on the premises. One is a 2/1 and the other is 1/1 with a combined sq ft of 1,349.

The 2/1 is rented for 1,200. The homes aren’t worth much the land the homes on is more valuable. The land is leveled and ready to be built on. The seller has had a buyer approach him numerous times attempting to buy everything but he continues to decline all offers. He said they called him 6 months ago offering him $700k which he declined because his asking price is $800k. As far as motivation he WANTS to sell it because he is sick of paying taxes on the property which he isn’t even using.

I did some research on the comps around the area for how much homes are going for and their total lot area. There is more than enough room for a development company to be the end buyer on something like this and still make a ton of money. $200k-250k homes are on average 6,000 lot size sq ft in that area. Just doing some math 5 acres=217,800sq ft and 36 6,000 total lot size sq ft homes could go there.

How do you think this should be approached?