I have 2 pieces of land and when I originally bought these I had planned on subdividing (making 5 lots out of 2) and selling all but the 1 lot I wanted. I thought that I could take whatever I made from the subdivision and use that to build. Ok, so fast forward almost 5 years and well over an additional $20K and the land isn't subdivided, but all the plans and permits are laid. At this point I've run out of cash and desire to subdivide and have decided to just sell.
I had the land listed with a realator, and even had a contract signed. Keep in mind that I already had the perc test, and septic design too. The buyer decided that they wanted to put the house where the septic was, and with the cost of getting a new septic design and where they wanted the septic to go, it was going to cost them another $20K. So needless to say the buyer backed out, after having signed an initial P&S....
In the mean time I was in discussions with a builder about some ground work on the "keep" site. Turns out he wants the subdividable piece, but doesn't actually want to pay for it- instead wants to work a partnership deal because he has the equipment and capabilities to do all the site and tie in work. Sounds ok, but that doesn't give me money to do anything... so I continue to pay my land mortgage, and rent... sounds great... oh wait that's sarcasm. So I decline the offer.
Ok so fast forward another 6 months. At this point I've let my contract with the Realator expire and decide I'll post it myself. Knowing this builders (we'll call him D) intrest I call and tell him I am going to post it myself, and ask him if he's interrested in buying it, he says he needs to "work the numbers"
I think, well we are going into winter, so building usually slows down...
In the meantime, my former Real Estate agent calls after having someone call her asking if I still had the land.- I sign a one time contract for this one person, give them a set of the prints, etc. and wait.
I call about 2 weeks later and ask if she has heard back.. nothing. Ok so I call "D" back, and see how he's fairing on this. He's worked the numbers and want it.... at dirt bottom price.
Since I haven't had any other interest, I say "Ok, let me call my realator and see what she has"
But (to his defense) we do talk about possible financing, and payment options. I call my realator to let her know I have an offer. I hear back from the realator a couple hours later, the other party wants it, bids 10K more, and it's a complete cash offer. Do I look like an idiot? OF course I'm interested in this deal. I call "D" back to tell him this, and see if he's interested in making a counter offer, but I get his voicemail so I leave all the info on that. "D" calls back, absolutely in a rage saying I thought we had a deal, this changes the figures... etc... By the way, a little background on "D"- he's in the business of buying, subdividing, building and selling, so he's no newbie to the real estate game.
I tell him we've not signed anything, and that this isn't personal, it's just business and of course I'm going to try to get the most that I can to clear my loss of time and money. "D" proceedes to tell me how he's worked the numbers to make his offer work for him, and how he didn't know I was going to try to get another offer... I admit that I am a sucker, and begin to feel a little guilty. This guy has been so nice all along, and willing to look at different building and site options with me on my "keep" lot... I begin to have a little more guilt.
However, I do realise that what he wants to pay will just pay off the lot... and not give me any capital, so I stay firm that I am entertainning this other cash offer. He, angrily asks how much time he has to make a decision. I tell him that I promised the realator I would call her the very next morning because after that I'm out of town until the following week. He become more angry and says "I only have a few hours to think about this?"
I go silent. What am I supposed to say? You're trying to lo-ball and guilt me into the cheapest price so that you can turn around and make a huge profit?
D calls back a few hours later with a matching offer... and lots of guilt.... this time I give in to the guilt all the while knowing I'm being a sucker. I accept the offer. I get off the phone pissed that I accepted his offer, pissed that I let him guilt me, and even more angry that I let myself be put into the corner. Financially it pays for the lots and gives me a little bit of money. I'm still angry and swear that I won't be "nice" to someone again. Lesson learned, he suckered me big time, I'm a dolt, and I will pay the price financially.
By the way, my butt is sore from kicking myself...
This is why you use a Real Estate Agent, so it doesn't feel like a personal attack...