Part of me wants to continue writing about politics (or nothing at all) so that the good banter continues. I love my diverse friends! Especially when I find out that spouses don’t necessarily agree on the issues like Jim and I don’t. More evidence that we’re “normal”!
Side note – if you don’t often read backwards the post from the 4th has gotten quite a bit of traction that’s worth checking out and weighing in on.
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A little blurb about some personal heartburn… as you know we have the lot behind us that is currently empty and not actively being sold. We had discussed buying it from the owner but he wanted $55K for it and we just weren’t willing to shell out that kind of money for a plot that’s largely unusable. Several (about 4) other neighbors were in our same position – had land they wanted to buy behind them but couldn't reach an agreement. Their situations turned into a new neighbor which has led some of them to feeling frustrated or, in one case, misled. Our next door neighbor is so mad about the position of the house that was put behind him that they’re getting a lawyer and are considering moving.
The developer is looking to work on this lot and make it sellable by the end of the year so now we have to make a decision as to whether or not we want to buy it or if we want a neighbor. It's proven that houses go fast in our neighborhood - our subdivision alone has over 20% of the active building permits in the township! We’re trying to learn from the hindsight of our peers and are taking our purchase opportunity more seriously. The new offer on the table is $45K and he doesn’t seem likely to budge on it. His pitch is that WE could sell the home to Ryan Homes and have a house built on it or, when it’s time for us to sell, it would be a good bargaining chip for our potential buyers. Really, of course, our plan is to buy the land and do nothing of the sort – we’d be buying it so a house DOESN’T go up.
The cost to develop the land is estimated at $5000 and there will be additional expense of seeding/sodding it and adding to the sprinkler system to include it in the reach.
While we’re leaning towards the purchase I'm feeling the weight of yet another five digit check being written and our savings constantly being depleted. This puts off my porch project by another several years. : (
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Welcome, Cortny! I’ll aim to entertain!
2023 Year in Review: Tough breaks, but it’s all right
11 months ago
9 comments:
I think it would be a tough call on whether to buy the plot of land. It is, however, nice to hear that your neighborhood is a popular neighborhood. :) Whats your porch project?
Tough call - think of it this way, though, how much more will you enjoy your porch (& deck as I'm assuming your porch will be in the front of the house) in a few years if you don't have another house crammed right up against yours? How will it effect resale value either way?
Or, is this the house you plan to stay in until your kid(s) grow(s) up, goes to college, gets married, etc? Wow, that leads me to think that with the lot behind your house Nicole could have her wedding in your backyard!
I say if you can afford it, do it.
Tough call! It's one of those awesome "real life" problems that don't have an easy answer. The monthly payments on that lot are meaningful so I think it comes down to 1) are you planning to stay in this house for a long time and 2) how much utility could you get out of the lot. Utility can be to keep green behind you too so it's a tough value proposition. One other way to look at it is would you be willing to work an extra XX number of months before retiring or changing to stay at home or part-time schedule in order to enjoy the extra lot for XX number of years you will stay in the house. It's funny because it's like taking a new BMW and burying it in your back yard but it guarantees having that back yard! I think what scares me most is could it REALLY be built on, because if YES then it's really an investment rather than a cost, but if NO and they are trying to play hardball then it is a sunk cost - though still has a value based on quality of life arguments.
I think they're being assholes. I can't believe that the lot behind you is "buildable"! There's no way. But I also see what your neighbors are dealing with and that would SUCK. We bought in our neighborhood for several reasons, among those the fact that 1) it was done being developed and we knew what we were getting for neighbors and 2) the lots are a half acre each and we aren't on top of each other.
If there's even a remote chance they could actually sell it and develop it, I'd buy the land. But it's true that it's like buying an expensive car you'll never get to drive.
I assumed you were staying in this house until you died. Maybe that's because I'm staying in mine until I die. :) Good luck with this hard decision. I personally wouldn't want my neighbors right on top of my like that.
I *LOVE* the analogy of buying a BMW and burying it in the backyard! That's great...
From the selfish perspective, I'm a little bummed that they've just now gotten around to decided they're going to sell that lot. If it was available six months, I would've wanted to build there! :)
Key point: Just because you buy it this year doesn't mean it has to be developed this year. Just get it so that no one else can have it, then worry about developing it. I mean, worrying about the price to put sod down and install a sprinkler system kinda seems like putting the cart before the horse...
Why not try to split it with your neighbors and treat it as an "easement"?
Some good paperwork could protect both of you and keep your values up.
Dave
I belive $45k is too much money. I believe you would never recover the money back if you had to sell, especially in the economic challanges we are facing now. When you thought it might have been around 20K at one time, that again would have been a different decision process. I believe you may have to keep an open mind about the possibility of moving some day, just because you may want to move. It happens a lot. Most folks I know that build their first home, usually move on to another of simular age and quality, or because things just change, they just move. I say keep your savings intact for now, and look into holding on to that money for what I believe will be a time you wish you had it for bigger things in your future. They just want too much money for it. Again, if you have to ever sell, you value will be based on square footage of the house and not too much about the land behind you, unless there is another house on it. The other issue is that you can not expect you home value to increase much in your neighborhood, until they are all done building. If you had to try to sell your house say next spring, the competition to just build a house in the area would not allow you to make a profit on the home, until all of the lots are taken and all of the homes are built. This was the experiance I had when I built my first home. The value never really went up, until they were done building. Please consider very carefully, ALL of your options, before you decide.
David
Ah, a problem I've already forgotten how to understand here in my crowded city neighborhood! I can't even comprehend having a lot anywhere near my home... I have a parking lot! Kids do donuts in it at 1am. :)
I thought I already commented...apparently not.
I'm on the side of BUY IT. Then again, it's not my money I'm "spending". I understand the financial hardships that could bring (I'm assuming you'd re-finance your mortgage to get that included?? who knows).
The reason I'm on the side of buy it, and admittedly I have NOT seen your property, however, it's my belief that new developments don't have enough yardage. Where is Nicole going to play as she grows up?? Do you really want to worry that your new neighbors will be able to see *all* of you as you step into your shower? I'm with Dave - buy now, but don't worry about the investment yet to make it the full yard. Nothing wrong with keeping it overgrown (if the builders/whoever currently own the property don't have to keep it manicured, why would you?). Besides, you saw DEER out there. Isn't that worth it?? :)
again, though...I'm spending your money. If I were in that situation, I would not be able to afford it right now. Then again, assuming all things were equal, I'd also be married with that second income plus another parttime job and a kid......
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