My brother and I own adjoining waterfront lots in a prime location and a very hot market. Combined our lots total almost 2 acres, which is very rare in this location. The only shortcoming is the view, which isn't the ideal long-range sunset view.
We can subdivide them, to create a 3rd lot. For simplicity let's say they would be worth $1-1.2M each. We'd prefer to offer it as one lot to somebody wanting to build a large home. (There are a handful of very large homes, 20,000-30,000 sf, nearby). We are trying to decide where to price it. My brother is nervous about asking too much, but I feel that there isn't a "too much" for people that can build a 30,000 sf home.
In 2011 two lots were combined nearby creating a 1.4 acre lot with an impressive view, for $3.4M.
If we sold our 2 lots separately I think mine would likely sell for $1.3-1.4 and my brother's would go for $1-1.1+.
We've discussed pricing and settled on an asking price of $3.4M. He's afraid that if we ask too much we won't get any offers. I'd rather ask more and see what kind of offers we get.
If there's no interest we plan to make 3 lots and try again. The risk there is we could end up sitting on a lot or two for a while. (His, mine, and a shared lot) So, that would be more complicated and likely more time-consuming.
Can any of you with experience offer some advice?
thanks,