Negotiating Sale to Development company

[Matt Kauffman]

Hey BP, I own a duplex next to the Pro Football Hall of Fame. They have announced that they intend to expand their facilities. We are in the process of negotiations and I'm wondering how best to proceed. I'd love to hear from others who have experience in this area. 

The Negotiations so far: My duplex sits on 9K sqft lot - open market is worth $90K, I clear about $8K/yr in net revenues.

• Next door, SFH on 12K sqft sold for $115K
• Across road, SFH on 17.5K sqft sold for $175K
• Buyer asked for a starting place, I told him somewhere in the middle of those 2 properties
• First offer from them $115K - I wasn't happy about this
• Countered them at $175K 
• They countered and said they'd re align at that price - I'm not buying it considering my location. I'm not on the fringe, but in the heart of it all.
• He would like to propose to them $130K
• I'd settle this deal for $150, which is basically right in the middle of these discussions.
• They are currently waiting to hear back from me. 
• Question, how do I negotiate the sale of my duplex as a business against a owner occupied SFH next door with this buyer?

Matt

[Nick L.]

@Matt Kauffman

I would say you are thinking in the wrong terms. The question is not what other properties have sold for on the open market. It's what this specific property is worth to you and to the developer. There are no exact rules in this game - you have to make your best guess as to how much you think they want this parcel. 

But hey, don't get too greedy and end up with a "nail house" like these people...