I was recently contacted by a client to represent them as they had a request to sell just a few “mere feet” of their property to a residential developer. The client’s “mere feet” of property was required so the developer (who was developing next door), could add an additional home site to their development.
Although the developer presented the initial offer to the client, the question was asked if the offer was fair. The answer, I said, is in the Zoning Code! Although the size required by the builder was small indeed, the reduction of the “mere feet” from my client would preclude from their future ability of selling the remnant property as a partial Lot. Therefore, due to the city’s Zoning Code, the size of the parcel that the neighboring developer required really didn’t matter! The future value of my client’s lot (without the “mere feet” bought by the neighboring developer) would have prohibited my client from seeing the full value of that ½ of a lot under today’s current Zoning Codes.
To summarize the transaction, my client owned enough front footage width to develop one home, with enough land remaining to facilitate ½ of a lot in the future. With that “mere feet” being sold to the developer next door, my client would be at risk in the future in selling their remaining land for full value for that ½ of a lot. In that, my client would perhaps risk the entire future value of this ½ lot by selling just the “mere feet”.
In an effort to protect my client’s financial future with respect to the value of this remnant lot, I suggested that we charge the developer today’s lot prices based on the ½ of lot which was being risked.
Do you have tough questions on real estate values? The answers can, at times, be found within the zoning codes, and comparing this to the real estate values of today. Let us know if we may assist you with your tough real estate questions. The answers are out there and with over twenty years of experience, we can help you make the decisions that are right for you, your family, and your future.