Quote:
Originally Posted by chassis
Quote:
Originally Posted by M_Six
Since we're talking real estate again, here's a question. My neighborhood is mostly 1 acre lots. We're in a township, so there are no setback rules or even any codes to speak of. My neighbor to the south originally bought the lot between his house and the house we bought so he wouldn't have a house right next to his. So there's an acre lot, mostly wooded, between our house and his. He died several years ago, but his wife, who is sadly suffering from Alzheimer's and is in long-term care, is still the owner. At some point, his son will probably sell the property as he lives out of state. I've considered asking him for right of first refusal on the open lot if he's willing to sell it. I don't want a house right next to us either.
So my questions is, how do you value something like that? If I buy the lot, I'd be out the cost of the purchase, plus the yearly real estate taxes (which are high here). I realize there is a intangible benefit here which is hard to quantify (privacy). But are there other considerations I'm missing? We have no plans to sell or move. We've pretty much decided to retire right here, so I'm guessing recouping the cost of the purchase and subsequent taxes will not be a consideration. There is a 1/4 acre or so of grass which abuts to our lawn, so mowing will be more extensive, but otherwise I don't see a big jump in upkeep. Like I said, it's 90% wooded. I'm very roughly guessing a purchase price in the $10k or under range. The lot is build-able (water and elec).
Thoughts?
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Are you in a subdivision?
What utilities are provided to your home? Natural gas, city water, city sewer?
Do you have an HOA?
Is your title or deed identified as a "detached condominium"?
Do you have any type of relationship with the current owner? Or are you total strangers to one another?
Valuation approaches:
- look online at Zillow or realtor.com or craigslist for 1 acre buildable parcels for sale in a subdivision or neighborhood comparable to yours. The key is "comparable to yours". 1 acre carved out of the center of a corn field with no utilities or access will be valued much differently than a neat and tidy immediately buildable lot with paved streets, sidewalks, street lights and a nature trail nearby.
- look at your local taxing authority's website for their valuation of the land portion of your home+land, and the elderly woman's (neighbor's) home+land. The parcel value you seek to buy will have some relevance to these numbers.
- ask the elderly neighbor/current owner or her estate's trustee or executor, what price they would sell you the land. |
Or just drop the $10K. Seems cheap relative to piece of mind.