Posted by Doris - Va. on July 17, 2001 at 19:46:24:
Roundhouse - Hi -
I just went through the exact same thing with a woman owner and her realtor.
The asking price on this small 21 space park and tiny SFH plus 6 acres of undeveloped land was originally 425,000. Been on the market for three years and realtor told us we could probably get it for 375,000.
After initial due diligence - using a capitization rate of 15% as major conversion of old septic system is needed plus upgrade of homes etc. - we came up with a value of about 260,000 and would offer 240,000.
The park by itself only valued out at 160,000. The other hundred thousand was the 6 ac. tract. That is being generous as well since mound and peat systems will be needed by developer on all but two lots of the eight zoned SFH lots on the tract.
Where these people got 3 to 4 hundred thousand is beyond me and my partner to comprehend.
I like the plan Ray Alcorn laid out for dealing with this type of situation.
In our particular case, we plan to look elsewhere.
Doris