Hi everyone, new raw land investor here.
One of my first leads came in yesterday and I wanted to solicit some opinions on how to proceed. It's a 14 acre property but has a couple of problems with it.
First, according to the seller, there's a fallen-in house on the property so there's going to be a big clean-up for whoever buys the land.
Second, and perhaps most importantly, it's land-locked behind another property, so I don't even know if any buyers would even have access.
I was thinking that this could all be counteracted by just a really low offer with an explanation of all the issues. But I'm actually wondering if I should just walk away. This would be my first deal so I do not want too many complications.
simply do not take anyone's word for this landlock situation.. open escrow get a title commitment and see it it is actually landlocked.. if it is your remedy in the real world. is
1. getting a neighbor to grant you the proper easement you will need.
2. confirm from the city or county that you can access the property from this new easement..
despite common statements folks will make that no property can be landlocked.. and there are remedies this simply is not true.. properties can be landlocked... owners do it to themselves..
not common but it does happen.
As for the old house.. sometimes if there is no lead or asbestos fire department will burn them down as an exercise.. ( sometimes)
biggest issue in many markets now is the lead paint and Asbestos remediation during the demo.. some areas they don't car. In our area they care I got caught between the new rules and it cost me a 19k fine plus the clean up of another 20k on a house that if I demo it a year before would have cost 10k or so total.. ..
Good point, I didn't think about extra cleanup because of hazardous materials. The wrecked house is apparently from the '40s so everything you've mentioned could be present in spades as well as other contaminants.
If there's access to the property, recent sales as well as a zillow estimate is pointing at about 60k for the entire thing, but that's assuming just flat land. So, I think I'd be lucky to sell it for maybe 35k, assuming 20k for cleanup. (It looks like there's other garbage on the lot as well)
I'll also get on the phone with the county and verify that there's access. If I can confirm access, that alone may up my value of the property.