Vacant land to build my forever home for my family

10 Replies

I found a piece of property to build a house on for me and my family 5.44 acres . It is listed for $44,440 $8,100 and acre. Would $32,440 be a good asking price ? Prices in town are that for .25 - .50 acre $29,500 - $40,000 ........ but here is the kicker It was listed in 2010 for 25,770 for 6 months and went off the market Agin I 2011 for 5 mounts at 25,770 $5,000 an acre Now in 2018 on the market for $44,440 $8,100 acre are these people fishing , or has the property gone up in value the property is north of Nashville close the the Tn Ky line bethpage Tn 37022

First off, look at the comps in the area for parcels around 3-5 acres in a similar location. Is there anything negative about this lot?  Farther away from town, no city water/utilities, flood plain, RR, eye sores? All of those things can lower the price a lot. After looking at comps and also looking at any negative or positive aspects, what is this property worth TO YOU???

Offer what a property is worth (or less). If the property has been sitting for a couple of months (or years) do not even worry what the "price tag" is. Someone can be asking $900,000 for a property but if it has been on the market for a bit and I think it is only worth $650,000 I would probably offer $600k and go from there. 

Since this is property you will personally use, the lines are a bit blurred because then it is not 100% investment.

@Derrick O. I agree with what @Amy G. has stated. Since this is for your personal use, it basically just comes down to what you want to pay. The cost is a little irrelevant but having an exit strategy would be best. Raw land can be a tough sell.

If you have doubts, then I advise you work with a real estate agent that their specialty is raw land. Having access to utilities and location are huge with these types of raw land purchases. You are the buyer, so you don't pay for the agent commission. Why not use an expert, especially if it is free for you to do so?

@Derrick O. Ummmmm...you have in-town per acre costs but are you saying there have been zero sales of acreage in the past 6 months near this particular plot? It’s nice to isolate one property and look at it over time but it could either be cheap or expensive compared to surrounding areas. And raw land can be quirky. They could have listed 10 acres two years ago, sold 5, and now they have another 5 to sell. If you look at raw land you see (quite frequently) both a.) “will not subdivide” and b.) “additional land
/acreage available”. So unless you have static printouts showing the listing you just don’t know. Land is a little different because SFR home parcels...are...well...SFR parcels. People don’t routinely them and you can’t really easily subdivide an SFR parcel.

The land is level rolling hill . One driveway ,
One House at the beginning of the gravel driveway that owners child built a house on lived in then sold and 3 vacant lots for sale . The one I’m looking at is 5.44 acre the next lot is 6.44 acre for sale for 49,440 the third lot is not for sale and the owners of the property for sale have a house at the end of the driveway .
with that being said if I made any since of it at all
It’s been on the market 1 week concerned that $44,440 is to much seeing it for sale in 2010 for $25,800 and 2011 for $25,800
Cons
One drive off main road have to get rights to drive way for lifetime
There are restrictions but not bothering me
Pros
city water at main drive electric is at the main drive
Seller is getting it soil tested septic approved and paying for it

We offered $32,640, $6,000 an acre
They countered with $42,000
We went up to $38,000 told them we r working with our approved lender and our 20% down and this was as high as we would go . Waiting on a response back sellers agent is working directly with them by phone with our offer , waiting for a yes, no , or counter any advise is greatly appreciated thanks

Sounds like you pretty locked in at this point. Since it is not for investment purposes it doesn't matter much. Just getting the house build and permits ect... is really the hard part. Financing vacant land is interesting. Usually, those are just straight cash purchases. 

https://www.biggerpockets.com/renewsblog/pros-cons-vacant-land/

They said no to $38,000
Realtor said they may entertain $40,000
Just gonna leave this here . Kinda bummed

If this is something that is truly a deal and a place for your forever home for you and your family then why let it fall apart over $2k?  Seems like something that you could overcome if you really loved the property.  It's $2,000....

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.