What to expect? Small HOA in A+ area got offer to buy land
Hi all,
Just looking for some advice here and really what to expect.
Here is the scenario:
We bought a property a few months ago in an A+ neighborhood that is currently rented. It is in an HOA complex that is self managed with 12 units, all townhomes. It is a 10 minute walk to the financial district.
The HOA has received an offer from a broker to buy out the land. I'm hoping you can guide me here.
There is no more land available in the area and the land is on one of the most prestigious “street names”.
I tried to inquire more and basically the HOA is still in preliminary talks and that "everybody would have to nod "yes". Also have to get zoning and other paperwork done and this could be a few months to a year process.
How do you know if what the developer is offering is a fair price? Is there a place you can find recently sold land listings? Loopnet doesn’t provide recently sold.
The land is about 0.8 acres. I have checked loopnet listings and even though I found land in the same zip code (very few available), there aren’t any on this exact “street name”. They range from 0.2 acres to 0.8 acres and are on market for $9m to $25m.
Would this prestigious “street name” add additional premium?
If all owners accept to deal with the developer, how does the closing process work? With those who have mortgage balances? Does everyone need their own attorney?
I know usually the first offer is the "worst" offer, in this case, would the HOA negotiate on everyone's behalf if everyone agrees to sell? Can any owner "hold out" for more?
How long does such a process usually take where the zoning and permits are acquired and developer makes an offer?
Any other things to consider or keep in mind? Anyone have experience like this? I have seen posts about selling farm land or “strip mall” adjacent land but don’t see a post where the property/land was in an A+ area with waterfront and lots of buildings.
Thanks for reading any insights are helpful.