I Want The Land Not The House - What Will Be The Price?
I want to attempt a short sell. There are 3 one bedroom units on the property. The units are in such bad shape, that the owner can't get insurance and an appraiser couldn't price the units. They are a mess, and are not up to code. The owner could be fined for having tenants living under the current conditions. They are not worth rehabbing unless starting from www.scratch.The owner owes 40K on the property. The owner is also 4 months behind in payments. I want the land to build on in the future.
How do I figure out how much the land is worth? AND how do I figure what price to submit to the bank?
I would have the appraiser give a value for the land only, and then subtract the cost a licensed contractor would bid to raze and remove the units.
I agree with johnbriscoe. However, I'm surprised that the appraiser didn't conclude that the highest and best use of the property was essentially a building lot.