Options for Using Two Vacant Plots of Land
Bit of a wild situation here, at least to me and my lender; maybe it is more common than we think, not sure honestly. Anyways, on my latest project, the title came back yesterday and revealed two extra parcels of land deeded to the seller under the property I was under contract for. The wholesaler had no idea. I had no idea. We drafted an addendum to the contract and the sellers signed it to add the extra parcels in for no extra cost!!
For context, the two extra parcels form a triangle with my subject property. The already-constructed home is one point on the base of the triangle, and the other plots comprise the rest. Based on what my attorney provided, the plots aren't worth a ton of money, but since I haven't done a land deal I'm not sure if the actual sale price differs from what she got me. This is in Amsterdam, NY as well.
Plot 1: 2024 market value of $6,900. 45x120
Plot 2: 2024 market value of $3,800. 100x94
I'm still pretty new to the game, so I have no experience with land deals, ground up construction, zoning, things of that nature, and am wondering what the best play is.
Sell one to help with acquisition costs and build an ADU on the other? Sell both? Build on both? I am open to any ideas. Thanks everyone
Most Popular Reply
@Griffin Malcolm I have a similar situation (except my lots weren't free, lol).
The first step I'm doing is checking with the city zoning to see what they would allow before I get too deep with looking at plans, financing and construction. Once the city gives direction, then start to look at available options and penciling out the numbers to see what makes the most sense.
If they won't let you build on it, explore doing a lot tie agreement so that you can combine the parcels and when you go to resell it, you can ask for a higher price point based on the large lot.