Assessing the value of a development project
I am working with a seller on a unique property in Somerville / Cambridge, MA line in a very hot area and am wondering the best way to attack this. Basically its 3 small abutting lots (1 residential, 1 mixed, 1 commercial). I can easily gauge the value based on its current usage, however anyone that buys is likely going to knock it all down and build condos. I want to bring in a RE developer to take zoning into account and value it based on that, however the seller probably won't trust their value because they'll have a vested interest in the property. The other option is to bring in an appraiser (which I've been told with run 3 to 5k for something like this). Can anyone provide any insights on this and how to get the seller the most for the property? Thanks
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Not trying to be cruel here, but if you do not have the skills to evaluate the value of this property for him, you should not be selling it for him. You as an agent have a responsibility to any of your sellers. Perhaps you can locate a commercial broker in the area who specializes in lots or commercial development. They could have a better feel for the value without the appraisal.