How does one find out if their property would interest a developer? (sales, price)
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I have a small rancher with an acre of land in an area where most of the land on my road has been bought by a developer and large $1million + homes were built on it with 10 or more acres with each house.
I am thinking of moving out of the area due to the changing nature of the neighborhood and don't want to spend a lot of time or money fixing up the house if a developer would be interested in the property and just knock down my small house.
Any thoughts on how I should approach this?
The current developer is probably not interested since their lots are 10 + acres. But the area is growing fast and my lot is in a desirable location.
This question is out of my realm...but I'm curious why you decided that the current developer is not interested in your property? If his equipment is close... it might not be that hard to deal with your property. Since you already have a house on it, I can assume there's sewage, water, electricity, etc... So your land doesn't need to really be developed, but they could build something nice on it.
You can even call local builders and ask around... there's plenty of builders who build spec houses out there.
Do you know if the developer had a local brokerage do the sales for the project you mention? You might want to contact the developer, but I'd also suggest you speak with a Realtor first to get a market analysis for the value of your property. Then decide if you want to put your property on the market or if you want to explore contacting either the developer or the owners of properties adjoining yours to see if there is interest.
Have you had a recent market analysis done to determine the effect of the development on the value of your land? Has it had a significant impact? Out of curiosity...has your assessment for property taxes gone up??
I guess I assumed since the lots the current developer are working with are large, 10+ acres, and mine was only 1 they wouldn't be interested. The houses they are building are HUGE. But you are right it could fit on my lot. Yes, I have a well and septic, power, etc. They might have to level the lot since I'm on a pretty severe slope.
I have not had a market analysis done but my property taxes have soared. We have a cap here on how much your tax can go up each year or I think they would have quadrupled!
I have been watching how much houses like mine have been going for closeby and its at least 100-150% more than I paid for it 15 years ago.
So I guess it sounds like the smart thing to do is talk to a local realtor first before contacting the developer.
Would a developer generally pay less than the land is worth?
Would a developer generally pay less than the land is worth?
A developer will try to pay as little as possible for the land, for obvious reasons, while you want to get as much as possible for the land, for obvious reasons.
A really rough guideline that alot of spot-lot developers use is that the land should be somewhere between 10 and 15% of the sales price of the home. So, if the homes on ten acres were selling for $1 million, the developers were likely paying $100-150k for the lots. The home on your lot would likely sell for substantially less given the smaller lot size, so expect less for the land sale.
I guess I assumed since the lots the current developer are working with are large, 10+ acres, and mine was only 1 they wouldn't be interested. The houses they are building are HUGE. But you are right it could fit on my lot. Yes, I have a well and septic, power, etc. They might have to level the lot since I'm on a pretty severe slope.
I have not had a market analysis done but my property taxes have soared. We have a cap here on how much your tax can go up each year or I think they would have quadrupled!
I have been watching how much houses like mine have been going for closeby and its at least 100-150% more than I paid for it 15 years ago.
So I guess it sounds like the smart thing to do is talk to a local realtor first before contacting the developer.
Would a developer generally pay less than the land is worth?
They'll definitely negotiate a lot harder than a typical buyer.
If you truly are in a hot area, which it sounds, your land has already been researched and investigated and deemed not to be desirable to the surrounding developers. A one acre parcel in the realm of larger subdivisions going in is only desirable if it's IN THE WAY, or if your house is an eyesore that will affect the marketing of the bigger development (which I'm guessing your house is not an eyesore).
It's pretty difficult to split up a one acre "island" parcel and make it anything worth building on.
Another option is that if you are on a busy street, your land may be eligible for commercial rezoning. Not knowing anything about your area other than your OP, I have no idea.
If you want to sell and think you'll make money on it, there's probably an average buyer out there who would like to be in the midst of bigger homes, perhaps for the school system if it is a good one.
Thanks again. I'm learning a lot from the discussion.
Its not a busy street at all and the school is about a half mile down the road. Not having children I don't keep up with good schools but I think its considered desirable.
My property is on the other side of the street from the mansions so not in the way and not an eyesore. So I guess that's why I haven't been approached.
It definately sounds like I should go ahead with fixing up the house and see if someone is interested in living here even on a small rancher.
If I have a a problem selling, then I'll consider approaching the developer.
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