really need help on land sale decision

Based on the most helpful WSO content, here are some key considerations for your land sale decision:

1. Easement Issues:

   • Residential Easement: Lack of frontage and reliance on a residential easement can significantly reduce the appeal and value of the property. This can limit access and visibility, which are critical for many types of development.
   • Sewage Connection: The need for an additional easement to connect to city sewage adds complexity and cost for potential buyers, further justifying a discount.

2. Floodplain Concerns:

   • Floodplain Impact: Having 20% of the land in a floodplain can restrict development options and increase insurance costs, which typically results in a lower valuation compared to similar properties not affected by floodplain issues.

3. Market Conditions:

   • Current Offers: The fact that current offers are about 80% of what you could have gotten two years ago reflects broader market conditions. The pandemic created unique market dynamics, and the current offers might be more reflective of the stabilized market.

4. Broker Pressure:

   • Broker Motivations: Brokers may have various motivations for pushing a sale, including their commission structure and market conditions. It's essential to critically evaluate their reasons and compare them with independent market data.

5. Comparable Sales:

   • Discount to Comps: Given the easement issues and floodplain concerns, a discount to sales comps is reasonable. The exact discount can vary, but properties with similar issues often see significant reductions in value. Consulting with a real estate appraiser or another independent expert might provide a more precise estimate.

For a more detailed analysis, consider reaching out to professionals who can provide tailored advice based on the specifics of your property and the current market conditions in Austin, TX.

Sources: From Real Estate Finance to Founder of Development Company - Q&A, From Real Estate Finance to Founder of Development Company - Q&A, Q&A: Home Run Deal/Project - ~$3mm Profit, ~6.42x EM, ~18 Month Investment Horizon, Commission Schedules - What have you been seeing?, Are transaction comps for hotels really 20x?