Buying lot adjacent to ours

[Anonymous]

We bought a house out of state a few years back and there’s a small lot next to our property. We are acquainted with the owners and they are nice people. They’ve reached out to us asking if we would be interested in buying their lot. If we go through with this, we expect to pay in cash and not use a broker. We’ve only ever used a broker in prior home purchases, and they’re the ones who make sure we dot our i’s and cross our t’s with home inspections and what not. Given we won’t have any representation, what should we be sure to do to protect ourselves through this process, aside from an inspection?

This property is a little unusual and likewise, has few or no comps. We have not talked price yet. How do we determine a fair value for the lot with no comps?

Alternatively, should we hire someone, like a real estate lawyer or broker but at greatly reduced commission, to help us through this purchase?

[Anonymous]

If it’s a lot why do you need home inspection ?
I would find out about zoning and find out what you can use it for.
Yes, for real estate lawyer to help with out.

[Anonymous]

Is it an urban lot? Is there any chance there's anything bad underground like an old fuel oil tank?

[Anonymous]

You should get a survey and make sure that it has clear title.

[Anonymous]

Work with a local title agency. That's what I did, same situation. Honestly, it's easier than dealing with real estate agents. As it turns out, real estate agents are just a drag on commerce.

[Anonymous]

You could hire an appraiser to determine the value, but it sounds like it only has value to your neighbors and you, so it really doesn’t matter what others think it’s worth in this instance. What do the neighbors want you to pay?

[Anonymous]

Talk with the title company about whether they can determine if there are any easements across the property.

[Anonymous]

This is OP. There’s a small house on the lot, hence the inspection. It looks like it’s in pretty good shape, and DH and I were thinking we could use the house as guest accommodations including long-term stays for the grandparents. It’s definitely zoned for residential and I wouldn’t expect any weirdness like an oil tank given the history of the neighborhood.

Forgot about the title company, thanks! Yes, I will definitely hire a title company to make sure title is clear.

So I should hire a title company, appraiser (as we have no idea about price), and maybe a home inspector?

[Anonymous]

Anonymous wrote:You could hire an appraiser to determine the value, but it sounds like it only has value to your neighbors and you, so it really doesn’t matter what others think it’s worth in this instance. What do the neighbors want you to pay?

They haven’t named a price yet.

[Anonymous]

I would google the property address and see information on Redfin and Zillow and other sites and see the tax assessment.
With that information, size of the house , neighborhood and rental potential you can get close to the cost of the property.

[Anonymous]

You can also hire an appraiser.

[Anonymous]

How is the property unusual ?

[Anonymous]

Anonymous wrote:This is OP. There’s a small house on the lot, hence the inspection. It looks like it’s in pretty good shape, and DH and I were thinking we could use the house as guest accommodations including long-term stays for the grandparents. It’s definitely zoned for residential and I wouldn’t expect any weirdness like an oil tank given the history of the neighborhood.

Forgot about the title company, thanks! Yes, I will definitely hire a title company to make sure title is clear.

So I should hire a title company, appraiser (as we have no idea about price), and maybe a home inspector?

SO you're buying a second house. This is a question about buying a house off market. That's different than buying the next door empty lot.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is OP. There’s a small house on the lot, hence the inspection. It looks like it’s in pretty good shape, and DH and I were thinking we could use the house as guest accommodations including long-term stays for the grandparents. It’s definitely zoned for residential and I wouldn’t expect any weirdness like an oil tank given the history of the neighborhood.

Forgot about the title company, thanks! Yes, I will definitely hire a title company to make sure title is clear.

So I should hire a title company, appraiser (as we have no idea about price), and maybe a home inspector?

SO you're buying a second house. This is a question about buying a house off market. That's different than buying the next door empty lot.

Yes, that’s correct, I never said it was an empty lot. Do you have any advice?

[Anonymous]

If it's a weirdly sized lot, and small, it may increase in value by becoming part of your property.

You should definitely seek to understand if the house is "non-conforming" in some way to local zoning. And if there are easements (its access road is on someone else's land, or someone else has built something on its lot that has grandfathered status (like a fence incorrectly placed over a property line onto this lot).

The main reason people check these situations out is to understand what might later interfere with their use of the property.