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Not clear on how this whole bubble thing works

From an actual, yes I sent it email:

Hi ██████. Just going to ask for some clarification on a couple of things, OK?

Check me on some facts. This is how I have them in my notes, and I want to make sure I get them right:

  1. Buyer listed 29 ac at $██k/acre
  2. I called, and you quoted me $███k/ac for 7 ac, about 50% surcharge, which the seller thought would offset “loss of street access on one side.”
  3. I checked comps for wooded, bare farm, and developed land, sold and selling, and suggest $██k/ac is reasonable, or in other words about a 10% premium above asking price, because seller is indeed losing some street access on one side.
  4. Seller comes back with a suggestion that I pay net $███k/ac, or 10% higher than his first 50% inflated suggestion
  5. …for substantially less land.

I think maybe I missed a decimal somewhere. Or something.

Ken Muldrew said,

September 10, 2007 @ 12:26 pm

Is the 7 acre segment already a separate parcel? Otherwise, isn’t there a rather arduous path to subdivision that the seller has to navigate before the sale can be made?

Tozier said,

September 10, 2007 @ 12:36 pm

Which we’ve offered to do, and pay for. Over and above the money paid for the land.

Plus, he’s technically blocked by deed restrictions from subdividing. He has to transfer to a neighbor, or sell the entire lot as one. It’s us or nobody…

I admit it’s hard to get over the expectation that “land will always increase in value”. But to have it increase in value between stages in a negotiation… is a bit much.

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