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Please let me know your thoughts;
There is a house I am thinking about putting a bid on. The house is a fixer-
upper, I would have to pull out the walls and put in all new mechanicals and
insulation. The problem is that it is on one of two parcels, the bank took
the one with the house (from a defaulted equity mortgage) but they do not
have the other parcel, which will eventually go up for tax auction. Without
it, there is not much yard for this house.
I want to put a bid on the house, but need to ratchet down my bid to leave
myself the financial room to bid on the other parcel when it eventually is
sold. The original two parcels together were 100K, but I am not sure how to
estimate the value of the empty parcel (how much are other folks likely to
bid up to at auction) so that I can take that from my overall offer. I was
sort of thinking 100k = 50k for house, 50k for land, and half the land is
gone, so offer 75K, but honestly that still seems like too much (75K for a
house that needs work, with half the land, and no guarantee I will get the
other half so I might not have a yard)
I am looking for any information on how to correctly determine the value of
the empty lot, so I can bid accordingly.
Thanks,
keith
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Relative land value?
