Old house...big lot
Got another one for y'all. Negotiating with a seller (absentee owner) who has a 100-year-old 3-bed, 2-bath, 1600 sq ft, 2-story house on a half-acre. This is 2 to 3 times the size of other lots on the block. The other houses in the area are 2/1's and 3/1 or 3/2 comps within 1/2 mile are selling for no more than $100k. The house is really rough. Been vacant for almost 2 years and needs serious work (I'm estimating $60k). My best guess is that it would be better to demo the existing house, split the 1/2 acre lot in half and build 2 new 3/2 ranches. New construction in the area is going for $125k-$135k. Seller has had the house on the market recently listed as low as $30k. My initial offer was for $10k and he's countered with $25k. I'm having my doubts about this working but figured I'd run it by everyone and get more input from another angle.
Thanks!