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Out of the blue this week, a contractor approached me about selling a 25 by 260 section of my property in order for him to build a road (my property is currently 100 by 260). He bought a large parcel of land behind my house and is going to build several houses back there and would like to have a road leading out to the one I currently live on. I don't want to be greedy but I've been looking at several factors that I believe makes it worth more than just the book value of the land. Such factors as the diminished size of my lot, no access to my driveway for an extended period of time, dealing with the construction right outside my home, less privacy with houses that will now be behind my house, losing 3/4 of my driveway, not to mention that I'll now have 260 more feet of sidewalk to remove snow from in the winter. Any ideas from anyone on how to formulate a fair price for the land. It's a northern Monmouth County (Hazlet area) and the parcel is 25 by 260.
While what you’ve listed are all reasons your property is worth more to you, it doesn’t necessarily translate into reasons why it’s worth more to him. I’d try to give reasons that would benefit him when trying to justify your sale price.
Well, how much did he offer? The other factor is how much is it worth to him? If he sells six million dollars worth of housing and it's worth nothing because there's no road to it you're in a better position. But if there are four other roads and he wants yours so the pool guy can have an easier time twice a year you're less likely to make what you want on it.
I would say that whatever you want, then double it. Worst case is that you can come down by 50% and get what you want. If he agrees to it right off the bat you'll know you just lost money though.
I would start at triple what your house is worth right now if it's the only way he can access the land to build the houses. I would also make it that he buys my entire property and he deals with doing the subdivision with the town after you leave. If you agree to work with him to do the subdivision, you are going to be involved in doing that. I also wouldn't want to live in a construction site.
I would recommend that you contact an appraiser. I know that it will cost you a few hundred dollars to do the appraisal, but it will give you the most accurate value of the property and will be worth it in the long run to know that you got a fair price. Good luck!
then as far as price, there is the book value of the land, which should be easy to figure.
But there is also the downsides that you mention.
You should be compensated for those.
You say, you will lose 3/4 of your driveway.
Will you need to put in a new driveway, maybe re-located on your lot?
Are you prepared for the contractor to walk away?
Is this the only land the contractor can use to access his new homes?
That ups the price for your land.
Any price that you might feel is good for you may not be what the contractor wants to pay.
If you will not sell, do you know what the contractor will do? Is there another way for cars to get to this new group of houses? or does the contractor just want a convenience for the new homeowners.
You might want to call the town zoning person and ask, as far as what they know, is there a reason the contractor "needs" to put in a/another road to his new houses.
While what you’ve listed are all reasons your property is worth more to you, it doesn’t necessarily translate into reasons why it’s worth more to him. I’d try to give reasons that would benefit him when trying to justify your sale price.
this is EXACTLY what he SHOULD DO. Find out what it is worth to himself, ask for that, and if the contractor says no, then not a big deal. He does NOT HAVE to sell. I wouldnt sell it for a cent less than it is worth to me, if I did, I would be "losing value" (since he said he didnt want to be greedy, but I do not understand why, if it is worth more to the contractor, then sell it to him for what it is worth to him)
Maybe consider if he wants 30 feet, and then the sidewalk would be his responsibility :>
Unless you know what things are really worth, I would ask him for an opening bid, and then counter for triple that :>
I would just sell him the entire house for 50% more than it is currently worth (if you are willing to move) OR ask him to trade you one of the new houses if that is what would make you happy
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