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My former client Chris has contacted me several times over the years about a vacant lot adjacent to his property, and his concern that a developer would build a mega-mansion or try and divide the lot to build more than one house, despite the single-family zoning restrictions. Since the lot is on the south side of his home, another house would block a lot of natural light.
We had tried to locate the owner of the property on several occasions to see if Chris could buy it, to no avail. Just before the holidays in early December 2018, the lot came on the market and Chris contacted me to see if he could try and buy it. Having been in the neighborhood for 15 years, and raised their two kids in the house, Chris and his wife Polly were very attached to both.
I did some research and quickly realized that the lot was quite over-priced and that the address for the property belonged to the house next door, which the listing agent and her buyer were unaware of.
I immediately contacted the title company to make sure we could get the correct address and had several diplomatic discussions with the listing agent about the property being over-priced. The agent was a part-timer and a friend of the buyer and was just taking their lead in determining price. She told me that the sellers were not that motivated to sell but thought they would just try it out!
So, it was a tricky situation, I really did not want Chris to pay more for this property than it was worth, but it was hard because he and his wife had an investment in preserving their privacy, and they also liked the idea of designing and building a new house on the lot.
In order to justify paying a higher price, I consulted with a fellow agent in my office, Jeff Wolfe who specializes in land division. With his help, we realized that a third house could be built by subdividing part of Chris and Polly’s large lot and adding part of it to the vacant lot, creating two build-able lots.
So, if Chris and Polly changed their minds and decide to move at some point, they could create two build-able lots and make a profit. Jeff was kind enough to meet with us to discuss what steps would need to be taken to see what could be built.
Incidentally, I am so grateful to work in an office where agents are willing to help each other and share expertise, because this is not the norm in the real estate world!
Chris and Polly decided to put in a lower offer, and I provided a long justification for why, using relevant comparable sales, plus lots of information about the slow-down in the housing market and how builders are being more conservative in their offers, given the much higher costs of building materials due to the trade wars, and the uncertainty of the housing market.
We expected a counter which we got, but still felt it was too high, so we tried one more counter and the sellers decided to accept our offer which was $75,000 less than the original list price. Chris had a 30-day feasibility contingency, which he was able to extend to get all the info he needed.
So now Chris and Polly no longer worry about what is happening next door, and I feel that they did not over pay, which makes me happy.
Ready to sell your home? Go here to see what you’ll gain by having me by your side during this complex process. Ready to get started? Contact me today, or go here to learn more about me. Want more information? Check out my Top Secret blog post of FAQs for Sellers.
