I'm new to real estate investing and I have a 7,000 sq ft lot that a
motivated seller wants to sell. However, I'm not sure how to go about
figuring out what to offer him for the lot. I have looked on Zillow but
I'm not sure how accurate that is to use to gauge a pricing offer.
Zillow says $18K and the seller intimated that he wants $18k, so I know
that I can't go by Zillow on that. So once I figure out what to offer
that he will accept, I'm hoping to assign the contract for at least $10k
more to one of my cash buyers. Any advise? This is my first deal.
First find out what can be built on that lot. What is its highest and best use? Go to the town's building dept and find this out. If its a residential lot and zoned for it and there are houses next to it, find out how much those houses are worth. Then research the cost to build a house on that lot. This will give you a good starting point on how much that lot is worth.
Not realistic to think you’re going to make $10k on a lot worth $20k it less.