How would you proceed in the negotiation over the purchase of some land?
Out of the blue a stranger contacted me offering to buy land I own for 75k.
I said I needed time to consider the offer, as selling had never crossed my mind. The offer is extremely good and way above my own estimate of the land's value.
A day later the person calls again and tells me "name your price and I'll buy your land", then corrects himself to say, "name your price and I'll consider it".
One week later the person increases the offer to 85k, which he says is a final offer. Again, I said I needed time to consider.
So far I haven't commented on the size of the offers nor have I given any indication of what I want
The land has stables but no house, nor does it have planning permission.
*IF* I was selling it with planning permission, the asking price would be higher than what I am being offered (i.e. around 120k to 150k).
Planning permission would be difficult to obtain because of the location, but not impossible. I strongly believe the other person's circumstances or contacts make it likely he will get planning permission - hence the high offer.
If the land had an average sized house, the market value would be around 350k.
I am inclined to sell - but am not sure how to proceed. I have not set any price or expectation myself - any input/advice appreciated.
The land is in a affluent, rural area of the UK. While rural, it is also only 30 minutes from a major city, and has two of the region's most affluent suburbs a couple of miles away. Four or five bed detached houses in the rural area and the nearby suburbs typically cost 300k to 400k.
- Anonymous6 months agoFavorite Answer
Since it seems he will use the land for something over & above building a house, you should price it as if it will.
But it sounds if he already has. You have every right to ask him why he wants it.
EDIT, sounds like a simply matter of would you rather have the money or the land. (Also take income taxes and property taxes into consideration)
- StephenWeinsteinLv 76 months ago
Ask for $120k. If he can get planning permission and then sell for $120k to $150k, then he has nothing to lose by agreeing to pay you $120k. He'll probably counter with a lower offer, but he seems to really want it, so you should be able to get more than $10k over the original offer.
- Steve DLv 76 months ago
The fact that the land with house is worth £350,000 is irrelevant unless you are the person doing the building. You need to determine what the land as is might be worth. Consult a real estate expert in your area and get a market appraisal - they will be able to compare your land with similarly non-built lots. Once you have this estimate, you can bargain from a position of knowledge (if they come back and say the lot is worth £100,000 then you can counter the lastr offer - if they come back and say the lot is worth £75,000 you can jump on the last offer).
- regeruggedLv 76 months ago
I would keep the land for the time being. Since it has value, the value won't go to zero. Seems like the buyer knows something that you do not.
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- 6 months ago
You need to see what the valuation of your land actually is. once you know that, you can figure out what to ask.
About the 350k - this is not a consideration, as there is no average sized house on the property