Advice on 5 acre land

2 Replies

Here is the potential deal…

The homeowner lives in Butler, Pa on a farm but owns 5 acres in O’Hara Township, Pa with 2 properties on the premises. One is a 2/1 and the other is 1/1 with a combined sq ft of 1,349.

The 2/1 is rented for 1,200. The homes aren’t worth much the land the homes on is more valuable. The land is leveled and ready to be built on. The seller has had a buyer approach him numerous times attempting to buy everything but he continues to decline all offers. He said they called him 6 months ago offering him $700k which he declined because his asking price is $800k. As far as motivation he WANTS to sell it because he is sick of paying taxes on the property which he isn’t even using.

I did some research on the comps around the area for how much homes are going for and their total lot area. There is more than enough room for a development company to be the end buyer on something like this and still make a ton of money. $200k-250k homes are on average 6,000 lot size sq ft in that area. Just doing some math 5 acres=217,800sq ft and 36 6,000 total lot size sq ft homes could go there.

How do you think this should be approached?

I doubt that is what the town planning folks are thinking. Roads, improvements, park, services.

That reduces from 36 lots to may be 24 lots. I will be surprised that you will find a builder or developer interested.   Your first order of business is town planning folks.

Land in America has not gone up much last 40 years. Developers will first start with default properties gettti

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