Cost of Site

somesoldiers

We recently sold our house and are hoping to build beside the mrs' parents. The land we had our eye on is not owned by them so we asked her dad to approach the neighbour to see would they be interested in selling . They said they would but remained cagey about the price.


We decided to get an independent valuation done to get an idea of the fair value of this in today's market and also to have an idea of what our mortgage company would value it at.


This came back at 35K for .75 acre. We told the owner and gave her the report. She said that the valuation of the land should be roughly 1/3 the cost of the house we would eventually build, that an estate agent had told her this. Of course this is nonsense but she is determined to accept no less than 50K.


We flatly refuse to pay any more than the valuation so we are at a bit of an impasse. Should we suck it up, pay the 50K and move on?

draiochtanois

This post has been deleted.

somesoldiers

draiochtanois wrote: »

This post has been deleted.

thanks, we will certainly consider that. Our valuer suggested that we offer 40K for an acre, which would be an even rawer deal for the seller so we didn't even bother.

Skybox

Your issue as I see it is that you have approached the owner. They were not looking to sell so if that's the land that you are after, you will always end up paying a bit more than if the owner had it up for sale. What you could suggest to the owner is to get their own valuation at your expense and go from their.

If all goes through as you hope, you will end up living next to this person for years so you will want a good relationship with them.

JeffKenna

To offer 35k for a site is very unreasonable especially considering that the agricultural value of that site would be 8k-10k if sold on the open market (varies depending on location). Realistically you want to compensate the owner 25k for the nuicience of having a house situated next to them/adjacent to their land.

Also, moving next door to the Mrs parents....rather you than me!

runawaybishop

somesoldiers wrote: »

We flatly refuse to pay any more than the valuation so we are at a bit of an impasse. Should we suck it up, pay the 50K and move on?

The valuation is irrelevant if the owners weren't thinking of selling and have no real need to sell. If its worth 50k to you to build there than go ahead, otherwise look elsewhere. 15k might not seem much in the long run of things but on a mortgage that extra 15k can mean a good few years extra before you are cleared. There also isn't much point negotiating a larger site unless you need it, it just takes more time and money to maintain.

Rackstar

What part of the country? Is it being sold subject to planning permission?

somesoldiers

Rackstar wrote: »

What part of the country? Is it being sold subject to planning permission?

Kells, yes subject to PP

somesoldiers

somesoldiers wrote: »

We recently sold our house and are hoping to build beside the mrs' parents. The land we had our eye on is not owned by them so we asked her dad to approach the neighbour to see would they be interested in selling . They said they would but remained cagey about the price.


We decided to get an independent valuation done to get an idea of the fair value of this in today's market and also to have an idea of what our mortgage company would value it at.


This came back at 35K for .75 acre. We told the owner and gave her the report. She said that the valuation of the land should be roughly 1/3 the cost of the house we would eventually build, that an estate agent had told her this. Of course this is nonsense but she is determined to accept no less than 50K.


We flatly refuse to pay any more than the valuation so we are at a bit of an impasse. Should we suck it up, pay the 50K and move on?

Are you for real? YOU want to buy something that was not for sale. They're not bothered about selling. Your attitude might push the price up significantly!
You are getting off on the wrong foot with your prospective new neighbours already!

bee06

I would say 35k would be cheap for a site being sold subject to planning persmission depending on the location. We have our site of the same size valued at 70k when we built.

Rackstar

somesoldiers wrote: »

Kells, yes subject to PP

35k is probably a bit cheap. 50k more like it. Offer €42k and see what reaction that gets.

somesoldiers

Deleted User wrote: »

Are you for real? YOU want to buy something that was not for sale. They're not bothered about selling. Your attitude might push the price up significantly!
You are getting off on the wrong foot with your prospective new neighbours already!

They did not have for sale but would have always expected that one of our family would offer and almost bit out hands off when we offered.
I have other options but only a small number would actually get PP in this area, hence my unwillingness to offer 15k more than an independent valuation

Rackstar

Who did you get to do the valuation?

MouseTail

€35k seems very cheap for a site that size in Kells, I can see why the neighbour is flats out refusing it.

somesoldiers

MouseTail wrote: »

€35k seems very cheap for a site that size in Kells, I can see why the neighbour is flats out refusing it.

It's 3 mile outside, 2 similar sites now on daft right now 55k 1.3, 40k .8

murphaph

All irrelevant for you unfortunately. The price is whatever your neighbour will accept for it and not one cent less. Their financial status will be a bigger determining factor than what Jack down the road wants for a different site.