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Old 05-22-2012, 06:57 AM   #1
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I know I know....but just a vague idea please!!

I have a client who claims that the vacant lot she purchased for 120k seven years ago is worth 2.5x more today, because she has site plans that she claims are a $40,000 value

How is this outrageous figure even possible. She's dreaming huh?

The lot is spectacular in its sweeping vista's but lets face it she's not building the Taj Mahal.

What is the most generous amount you could expect to pay for these site plans that would include 2000-3000 sq ft bungalow/w bsmt walk out

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Old 05-22-2012, 07:12 AM   #2
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Aren't site plans just a layout designed to the owners preference?

If the home was never built--I see no added value to the vacant lot---what is the likelihood that a future owner will want to build that exact house?

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Old 05-22-2012, 07:32 AM   #3
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Thats exactly what I thought, but somehow she has decided they're a 40k value, regardless.

Even if the rest of the world is wrong and the plans are worth 40k, plus throw in another 45k for time alone ( we will pretend the economic crisis never affected her lot) She is STILL over priced by almost 100k.

I can only shrug my shoulders
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Old 05-22-2012, 07:37 AM   #4
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If there has been substantial and high end development on neighboring properties or if infrastructure is now in place that was not seven years ago I can see the land valuing quickly. My best friend in Northern California developed really nice homes in the Half Moon Bay Area and they had the effect of raising property values substantially. Additional land plots became harder and harder to get and certainly increased in price rapidly. Supply and demand basics at play.

There are neighborhoods in Chicagoland suburbs that did not exist when I lived here before. I suspect people who had land in these highly developed areas did well. My home in Northern California was surrounded by fruit orchards to the point it snowed blossoms each spring. All those orchards are gone now and again, I am certain the land owners did well when the sold. Some even got their names on street signs.

I agree that the owner's $40,000 drawings for the plot would not cause a 2.5x increase.

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Old 05-22-2012, 07:39 AM   #5
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Not all people make for good clients----she would turn down all offers less than the asking price--
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Old 05-22-2012, 07:47 AM   #6
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Suggest to her that she get an appraisal for her own good, with the economy as it has been and things have changed in the last few years. If she isn't willing to do that it may be in your best interest to let that one slide. She could cost you some heavy bucks dealing with her refusals, just my thoughts.
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Old 05-22-2012, 07:47 AM   #7
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Quote:
Originally Posted by oh'mike View Post
Not all people make for good clients----she would turn down all offers less than the asking price--
You got that right !! Also the type to low ball everything as a buyer. I was complaining about her in another thread. She's also trying to sell privately. Good luck with that.

She would argue these plans include driveway and septic.

The lot is located a good 1.5 hrs outside of T.O. It sits atop a hill in a rural setting which affords these panaromic views. Although it is near a ski resort and the chalets there are expensive it must be sold within market valve as todays buyers are educated.

It is not in my market area so I can't say for sure of the value of increase but I do know that spectacular lots in a rich area do not not last

Thanks everybody
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Old 05-22-2012, 07:53 AM   #8
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Quote:
Originally Posted by jiju1943 View Post
Suggest to her that she get an appraisal for her own good, with the economy as it has been and things have changed in the last few years. If she isn't willing to do that it may be in your best interest to let that one slide. She could cost you some heavy bucks dealing with her refusals, just my thoughts.

Thanks Jim
I did say that last summer. I'm not helping her sell this place, but i have alot invested in helping her buy something down my way.

Time for us to have a serious chat, I'm really starting to resent the whole thing. She keeps emailing me whiny letters
If our relationship is over, then ce la vie


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