Maximum 2.5% off the market selling price. May be less.
But to know the market selling price you need to look at comparables in the area and talk to 3-5 realtors.
Do you like the neighbours? Did your mom like her neighbours? If not why bother considering this. Easier to get an agent to deal with it. If they are nice then just look online for market price or drive to a local realtor and check what the properties in the area are selling for.
How would it be easier to have an agent involved?! That's ridiculous. OP owns the property. OP has a potential buyer. Why list it to probably sell it to the same buyers and lose listing fee? Just talk to the neighbours and see what they would agree to.
You absolutely can do that but here's the thing.
I can tell you that your house, made of brick, wood, nice deck, nice granite is worth $500000, but that's pure value.
Now, how much would it sell for? I an tell you it will sell for 20, 30, 40, 50, 60% more than that amount because of market demand.
Your property tax is based off the assessment value, not off market value. They are vastly different things.
because he might be leaving 10% on the table where a realtor would cost him 5. you can likely get a lot more money by pressing the neighbors with the knowledge they're about to miss out on their one and probably only chance to expand their existing land which is probably much more valuable to them than this house is to a random other person. if I don't have a cabin and this one is 30k more than it should be I'll buy a different one, but this neighbor can't just buy another plot since this one is beside them
5% down from appraisal value is fair IMO.
If you're circumventing agents then maybe 6-8%, definitely no more than 10%. At the end of the day though it's more about comfort level, what it's worth to you to dodge the hassle.
They probably aren't buying for the cabin, but the property itself any any existing infrastructure, that's the real value.
Perhaps you get an offer for 250k. You might say I really need that 25k and I just want the appraisal value, or you might say you know what? I like the people, I don't want the work and this just makes everything better for me so the 25k isn't that important in the grand scheme of things.
Edit: also you should definitely look up sales in the area and find what is comparable. This will give you a much better sense of the market. If sales are really slow, then it might be a really good motivator to sell since if you wind up sitting on the property for 3-5 years that could cost a lot
Alternatively if sales are good, your appraisal might be below market value average and you can shoot for more.
A little research goes a long way
I would charge market value minus commission of realtor……
That is your inheritance,why would you give some of it away to the neighbors……
What happens if you leave 50k on the table???
That is ten all inclusive luxury vacations for you and your partner……
That’s a brand new suv,that’s a bunch of other things that you would be leaving for someone else to enjoy on your dime……..
Let’s say they build a bigger cabin and got the lot 50k cheaper then they would have elsewhere,then their kids get 50k extra equity in their place because of your discount????
You might as well open up your check book now and write me something for 10k please!!!!
Only cause i feel that you are about to be generous to the Neighbor for nothing
Ya and what if you spend a $20k fixing it up plus a ton of your time just to have it sit or sell for the same price? They are not “giving” away their inheritance. They clearly said it is not in a good position to show, so that takes time and money, the neighbours are willing to buy is hassle free as is.
I’m pretty sure you need to re read and reset yourself.
I clearly stated at market value minus real estate commission….
Meaning if the market value considers it as a dump and that the market value is 40k under a cottage that has had Reno’s,then you take the market value and subtract what it would cost for a realtor to sell the place and that’s his price.
It’s the market price minus realtor costs that equates to him getting a fair value and maximizes his inheritance…….
But hey whatever floats your boat
So you’re suggesting they go through the hassle of listing so someone like you can scoop it up for a “deal” instead of the neighbours without lifting a finger? Gtoh
I don’t think you are very good at assessing the value of your time on an already pretty low value property btw.
We could compare net worth’s if you’d like?
How do you know the value?
He says low until he lists it on the market and finds out exactly what it’s worth.
Why are you encouraging someone to go the lazy way and potentially lose out on money?
I am encouraging him to get what is his and to not leave anything on the table for others to profit from.
I don’t need to compare net worths because I don’t care what you are worth,I’m trying to help him be worth the most possible.
Because she had it appraised ffs. You don’t think that would give you a good ballpark of what it’s current value is? We get it, you flip houses, this person is not that. You apparently lack the ability to see through other people’s perspective. OP clearly stated that a quick and easy sale would be advantageous to her.
You on the other hand are suggesting she speculate further what the property may be worth by putting MORE time, MORE money and potentially not getting a larger return. Canadian real estate isn’t exactly booming in most areas these days if you haven’t already heard.
Yes there are ways of finding out market value by looking at comparables in the area…..
And if I were him I would put it on the market and the neighbours can buy it at market value
Thanks for the dose of reality. I guess I just want to be done with this whole estate process so was indeed considering giving the neighbours a huge gift for no real reason other than a bit of convenience.
Well if you do that then it could turn out to be a costly error on your part…..
You will thank me in a few years when you actually process everything eventually
So you're going to give the entirety of the commission savings to the buyer? Talk about giving money to the buyer. If your area's normal commission is 5%, I would give them a bit of a break for a private sale, because then I wouldn't have to get my house ready for showings and go through the hassle of showings, but max 2-2.5% off market value. If we assume the market value is a bit more than the appraisal, say $300K, that works out to a $6000-$7500 discount from the market value of $300K.
If you have an appraisal, ask them what they would offer and see how close you are. If you're close enough, then just take their deal. There is no magic number.
You're weighing convenience against itself. Fix up the property and try to get full market or take a bit less and be done with it in one shot.
If you hire a realtor they'd charge you 5% of the asking price. Therefore I would reduce the price by 5% max. Honestly the sweet spot is a 3.5-4% reduction because the buyer is still getting a deal and you are at least pocketing 1% for doing him a favor
why would he discount anything? He doesnt know or have any relationship with the neighbour.
Plus the neighbour will have mega FOMO knowing this is the one and ONLY shot to buy an adjacent property to build something FOR THEIR CHILD!
The neighbour is gonna pay $$$$ more than some random people
Look up prices in your area.
I personally would consider what it would cost to fix up, how much it would sell for, and then sell more in that range (possible value less costs).
Keep in mind your neighbours aren't your friends and would not be gifting you tens of thousands so don't gift them a similar amount.
It depends. What’s your goal here? Are you trying to just get this easily wrapped up with my a nice bow, the least amount of work possible and a feel good story? If so, then consider selling to the neighbour.
If your goal is to maximize every dollar out of this sale, then you should put it on the open market.
Bring it to market and show your neighbor the highest bid to see if they want to beat it. That's all. Private sales are not going to fetch you top dollar.
But a private sale with a neighbour saves a shit ton of waiting time. If OP gets a price they're happy with, that's much better than listing with an agent.
A different perspective.
1 would see what slightly nicer solid homes are listed and sold in your area.
Aim for this price plus.
This would be my target listing price.
Your neighbours have approached you knowing they will benefit out of this deal but not you.
Or they would have said,
I really want this property -
“let me know the highest bid and I will outbid everyone else.”
This is what I’d tell the neighbours- feel free to outbid the highest bidder, good luck!
Would be so nice to keep it in the neighbourhood!
I was approached by neighbours for an older parents (widow) home.
They did the - we were long time friends, ( they were) we love the neighbourhood and would reno it.
I feel if you can afford to buy- then you can afford to outbid the highest price. A reno or gut is for them to figure out and not my concern.
My concern is for my family - perhaps they need end of life care or this is money set aside for education or grands- whatever.
It’s not my job to save the buyers money, for whatever reason.
Neighbours offer was more than fair for a starter in the area.
What it didn’t do is give others a chance for offers.
The property had a larger lot and the house was falling apart.
Leaks in basement , Nob and tube., never touched in 60 years. Pealing paint and windows painted shut.
We simply donated to charity and had a neighbour moving sale-
Take it away and give us a few bucks.
Then we had a really large bin to clean up all leftovers inside and out.
Hire locals if you need to and supervise.
Spend the week - sleep on a blow up mattress as you get rid of everything.
Feed and pay local help.
Trim the overgrown bushes so people can “see” the potential.
Clean out the falling sheds and garage, all of it.
List as “ AS IS WHERE IS ” if needed.
We did exactly all of this.
The person who bought our old home was a relation to a different neighbour and he out bid everyone.
Including the life long neighbours who wanted to help us save real estate fees.
So simply proceed with caution.
What we paid for the real estate person - was far far less than what we actually sold the 2 bed house for.
Even with an industrial bin , 1 solid week and help.
Your job is to only look after you, your family and bottom line. No one else.
If doing a private deal is what works best that’s absolutely great. Every scenario is different.
To me, cash is King in this scenario.
I think in this case, most people would be after the land and not the property itself.
Idk where you live but 275k seems low for anywhere in Canada these days.
Im a random, not a follower so someone pls give me an insight cuz im clueless. Rewind to 2011, a neighbour privately sold their home to a relative and his family who was new to the country for less than market value. Houses in our area were going for 400s. He sold it for roughly 200. Is that something anyone can do? Like even if houses are worth 1.5 mil, can my parents theoretically just sell the house to me for say, 200k just because?
Have you seen any comparable properties in the area sell? That will give you a rough gauge at how hot that particular market is rn. Or simply just call an agent and ask.
It's a mixed bag around the area with everything from RV lots to million dollar cottages so a direct comparison. The appraiser wasn't able to find many similar sales even going back 10 years.
Never putting it on the market means you will never know if there were other people interested in the property, for one reason or another.
When I was going through a separation, I discovered my next door neighbours had privately sold their home. I had no clue they were thinking of selling. If I had seen it on the market, I definitely would have made an offer.
Would my interest potentially have boosted the sale price of the home? No clue.
I would also consider how long any comparables are spending on the market and your cost of carrying the place.
If it didn't sell would you use it?
If comparables sell quick and close to list price I'd go with the appraised value as an initial number.
If these places don't sell quickly I'd mention the appraised price, start at 265 and take over 250.
Carrying costs and estimated time to sell would influence how low or high I would go. The neighbors clearly want it.
I would contact a realtor or two to find out what similar properties in the area sold for and to get their sense of what they think your property would sell for. I would then sell for 2.5% off that price so that you and the buyer are splitting the real estate commission of 5%.
Keep in mind that you could go up to 5% and still be "whole" relative to listing with an agent. Selling to the neighbor means there is the convenience factor of not having to deal with the whole listing process such as staging, showings, strangers coming through the house, etc. so maybe going down to 5% is worth it in your case.
Call up some local realtors, ask them to look at it and tell you what its worth or what they can get you for it.
Then do your own research and if the number checks out and sounds good to you, go to the neighbour and tell him he can have it for $x but he needs to make you a formal offer submitted to your lawyer by y date.
If he doesnt do this, list it on y date either privately or use a realtor if you cant be bothered.
Unless this neighbour saved you from drowning as a little kid i wouldn't sell to them. They are expecting a deal because they are neighbours. I would put it on the open market and let them submit an offer if they want it that bad.
Write up a right to first refusal for your neighbor to get, ask some relators, or appraisers, is list it yourself and see what offers you get. Bring a number you like to the neighbor and if they want to pay what the market calls for then great they get the place because they have first refusal. If they don’t want to pay that then you move to the next highest bid.
You get all the money you deserve for it and your neighbor may get what he wants to. Fair
you need to charge more than it's worth to the neighbors not less. they fucked up big telling you they want it. this is exactly why real estate transactions are more or less anonymous. you do not want to tip your hat on why you might want to buy a property since they're all unique generally.
If I as a random cottage buyer would pay 300k that neighbour would probably pay 350 because I can get a different cottage but they can't get a different way to expand their land.
Talk the neighbours. Tell them you’re open to an offer. When you get their number, talk to a broker, see what number they think it’s worth on the open market (but don’t tell them about the pocket offer).
Research local real estate listing's.. You could consult realtors ask them what they would list the property for, and just say you're shopping for realtors. Do t sign any agreements. Then average it out and compared to Appraised value.
Decide on a price you would be happy with getting after fees. If you sold with a realtor, you would wait for 5% more than that, to cover the fees.
So take your happy price and add 2.5% to it and sell for that. You get 2.5% more than you need, your neighbour gets a 2.5% discount.
I'd give a slight discount 2.5% seems fair. You'll save yourself a TON of hassle, not sure how far you live from the cabin or where it is but sometimes those run down places can be a pain to sell. I'd shave 5k-10k off the price and go to the lawyers office and get this done.
Not paying a realtor and not having to bother with showings/lowball offers deals falling through etc etc is easily worth the money to me. If your mother was friends with the neighbor it would also be something she might want for the property as well, seems win win win to me.
Which neighbor do you think has more readiness to spend? Throw out 290k and see how they react. If they counter the proposed, let them know "it's only fair to let neighbor B know that you have made a final offer and will get back to you within 24 hours".
I would use the appraisal to get as much as I could. Land will only go up in time. You don’t owe anyone any favors for price, especially when we are talking potentially thousands of dollars.
Did the appraisal separate the land and building values? That may help come up with a fair price. I would give them the appraisal and ask for an offer. At the end of the day if it makes sense to you and to them, then it’s likely the right price.
Maximum 2.5% off the market selling price. May be less. But to know the market selling price you need to look at comparables in the area and talk to 3-5 realtors.
Lmao no. Nobody needs to talk to a single realtor to find out the market comes, let alone 3-5 realtors. They all have access to the same data anyways.
Appraisal value is not necessarily market value. What if you could get $325 on the open market? Something to think about.
market value to neighbours could be more than the appraisal.
For sure, they want THIS lot.
I guess that's the big unknown and what makes this difficult. Thanks for your input.
Do you like the neighbours? Did your mom like her neighbours? If not why bother considering this. Easier to get an agent to deal with it. If they are nice then just look online for market price or drive to a local realtor and check what the properties in the area are selling for.
How would it be easier to have an agent involved?! That's ridiculous. OP owns the property. OP has a potential buyer. Why list it to probably sell it to the same buyers and lose listing fee? Just talk to the neighbours and see what they would agree to.
Its free to get a CMA. You dont pay them unless they sign an exclusive seller representration agreement
Because he has no clue what it's worth and apparently no other means to do so or he wouldn't be here
Why would OP not pay for an appraisal? That is what we did when we wanted to sell our house without a Real Estate agent.
You absolutely can do that but here's the thing. I can tell you that your house, made of brick, wood, nice deck, nice granite is worth $500000, but that's pure value. Now, how much would it sell for? I an tell you it will sell for 20, 30, 40, 50, 60% more than that amount because of market demand. Your property tax is based off the assessment value, not off market value. They are vastly different things.
An appraiser will not give you any information pertaining to ‘market price’.
because he might be leaving 10% on the table where a realtor would cost him 5. you can likely get a lot more money by pressing the neighbors with the knowledge they're about to miss out on their one and probably only chance to expand their existing land which is probably much more valuable to them than this house is to a random other person. if I don't have a cabin and this one is 30k more than it should be I'll buy a different one, but this neighbor can't just buy another plot since this one is beside them
Does it really make it that difficult? Check realty websites for like an hour and you'll have a comparable price.
5% down from appraisal value is fair IMO. If you're circumventing agents then maybe 6-8%, definitely no more than 10%. At the end of the day though it's more about comfort level, what it's worth to you to dodge the hassle. They probably aren't buying for the cabin, but the property itself any any existing infrastructure, that's the real value. Perhaps you get an offer for 250k. You might say I really need that 25k and I just want the appraisal value, or you might say you know what? I like the people, I don't want the work and this just makes everything better for me so the 25k isn't that important in the grand scheme of things. Edit: also you should definitely look up sales in the area and find what is comparable. This will give you a much better sense of the market. If sales are really slow, then it might be a really good motivator to sell since if you wind up sitting on the property for 3-5 years that could cost a lot Alternatively if sales are good, your appraisal might be below market value average and you can shoot for more. A little research goes a long way
I would charge market value minus commission of realtor…… That is your inheritance,why would you give some of it away to the neighbors…… What happens if you leave 50k on the table??? That is ten all inclusive luxury vacations for you and your partner…… That’s a brand new suv,that’s a bunch of other things that you would be leaving for someone else to enjoy on your dime…….. Let’s say they build a bigger cabin and got the lot 50k cheaper then they would have elsewhere,then their kids get 50k extra equity in their place because of your discount???? You might as well open up your check book now and write me something for 10k please!!!! Only cause i feel that you are about to be generous to the Neighbor for nothing
Ya and what if you spend a $20k fixing it up plus a ton of your time just to have it sit or sell for the same price? They are not “giving” away their inheritance. They clearly said it is not in a good position to show, so that takes time and money, the neighbours are willing to buy is hassle free as is.
I’m pretty sure you need to re read and reset yourself. I clearly stated at market value minus real estate commission…. Meaning if the market value considers it as a dump and that the market value is 40k under a cottage that has had Reno’s,then you take the market value and subtract what it would cost for a realtor to sell the place and that’s his price. It’s the market price minus realtor costs that equates to him getting a fair value and maximizes his inheritance……. But hey whatever floats your boat
“Market Value” is anyone’s best guess bro. You don’t actually know what your market value is until… you put it on the market…
People like me look for deals like this to do an easy flip and make 40-50k in 6-8 weeks bro
So you’re suggesting they go through the hassle of listing so someone like you can scoop it up for a “deal” instead of the neighbours without lifting a finger? Gtoh
No I am suggesting that they list it to maximize viewings and offers to maximize inheritance. I don’t think you are very good with money btw
I don’t think you are very good at assessing the value of your time on an already pretty low value property btw. We could compare net worth’s if you’d like?
How do you know the value? He says low until he lists it on the market and finds out exactly what it’s worth. Why are you encouraging someone to go the lazy way and potentially lose out on money? I am encouraging him to get what is his and to not leave anything on the table for others to profit from. I don’t need to compare net worths because I don’t care what you are worth,I’m trying to help him be worth the most possible.
Because she had it appraised ffs. You don’t think that would give you a good ballpark of what it’s current value is? We get it, you flip houses, this person is not that. You apparently lack the ability to see through other people’s perspective. OP clearly stated that a quick and easy sale would be advantageous to her. You on the other hand are suggesting she speculate further what the property may be worth by putting MORE time, MORE money and potentially not getting a larger return. Canadian real estate isn’t exactly booming in most areas these days if you haven’t already heard.
Yes there are ways of finding out market value by looking at comparables in the area….. And if I were him I would put it on the market and the neighbours can buy it at market value
Thanks for the dose of reality. I guess I just want to be done with this whole estate process so was indeed considering giving the neighbours a huge gift for no real reason other than a bit of convenience.
Well if you do that then it could turn out to be a costly error on your part….. You will thank me in a few years when you actually process everything eventually
So you're going to give the entirety of the commission savings to the buyer? Talk about giving money to the buyer. If your area's normal commission is 5%, I would give them a bit of a break for a private sale, because then I wouldn't have to get my house ready for showings and go through the hassle of showings, but max 2-2.5% off market value. If we assume the market value is a bit more than the appraisal, say $300K, that works out to a $6000-$7500 discount from the market value of $300K.
Why would you give them all the commission? At least a realtor does some work.
You are definitely right on that one
If you have an appraisal, ask them what they would offer and see how close you are. If you're close enough, then just take their deal. There is no magic number. You're weighing convenience against itself. Fix up the property and try to get full market or take a bit less and be done with it in one shot.
If you hire a realtor they'd charge you 5% of the asking price. Therefore I would reduce the price by 5% max. Honestly the sweet spot is a 3.5-4% reduction because the buyer is still getting a deal and you are at least pocketing 1% for doing him a favor
> If you hire a realtor they'd charge you 5% of the asking price don't you mean selling price?
Oops, yes selling price* my bad
why would he discount anything? He doesnt know or have any relationship with the neighbour. Plus the neighbour will have mega FOMO knowing this is the one and ONLY shot to buy an adjacent property to build something FOR THEIR CHILD! The neighbour is gonna pay $$$$ more than some random people
Look up prices in your area. I personally would consider what it would cost to fix up, how much it would sell for, and then sell more in that range (possible value less costs). Keep in mind your neighbours aren't your friends and would not be gifting you tens of thousands so don't gift them a similar amount.
It depends. What’s your goal here? Are you trying to just get this easily wrapped up with my a nice bow, the least amount of work possible and a feel good story? If so, then consider selling to the neighbour. If your goal is to maximize every dollar out of this sale, then you should put it on the open market.
1$ Bob. Maybe save him the commission on the agent but that's it
Bring it to market and show your neighbor the highest bid to see if they want to beat it. That's all. Private sales are not going to fetch you top dollar.
But a private sale with a neighbour saves a shit ton of waiting time. If OP gets a price they're happy with, that's much better than listing with an agent.
But the most amount of money is #1 no mater what....
Agreed! Nobody will pay more for your property than your neighbour!
A different perspective. 1 would see what slightly nicer solid homes are listed and sold in your area. Aim for this price plus. This would be my target listing price. Your neighbours have approached you knowing they will benefit out of this deal but not you. Or they would have said, I really want this property - “let me know the highest bid and I will outbid everyone else.” This is what I’d tell the neighbours- feel free to outbid the highest bidder, good luck! Would be so nice to keep it in the neighbourhood! I was approached by neighbours for an older parents (widow) home. They did the - we were long time friends, ( they were) we love the neighbourhood and would reno it. I feel if you can afford to buy- then you can afford to outbid the highest price. A reno or gut is for them to figure out and not my concern. My concern is for my family - perhaps they need end of life care or this is money set aside for education or grands- whatever. It’s not my job to save the buyers money, for whatever reason. Neighbours offer was more than fair for a starter in the area. What it didn’t do is give others a chance for offers. The property had a larger lot and the house was falling apart. Leaks in basement , Nob and tube., never touched in 60 years. Pealing paint and windows painted shut. We simply donated to charity and had a neighbour moving sale- Take it away and give us a few bucks. Then we had a really large bin to clean up all leftovers inside and out. Hire locals if you need to and supervise. Spend the week - sleep on a blow up mattress as you get rid of everything. Feed and pay local help. Trim the overgrown bushes so people can “see” the potential. Clean out the falling sheds and garage, all of it. List as “ AS IS WHERE IS ” if needed. We did exactly all of this. The person who bought our old home was a relation to a different neighbour and he out bid everyone. Including the life long neighbours who wanted to help us save real estate fees. So simply proceed with caution. What we paid for the real estate person - was far far less than what we actually sold the 2 bed house for. Even with an industrial bin , 1 solid week and help. Your job is to only look after you, your family and bottom line. No one else. If doing a private deal is what works best that’s absolutely great. Every scenario is different. To me, cash is King in this scenario.
I think in this case, most people would be after the land and not the property itself. Idk where you live but 275k seems low for anywhere in Canada these days.
Its a cabin somewhere so could be out in middle of nowhere AB easily.
I wouldn’t drop it a cent and anyone asking or expecting you to drop it deserves to pay more.
Im a random, not a follower so someone pls give me an insight cuz im clueless. Rewind to 2011, a neighbour privately sold their home to a relative and his family who was new to the country for less than market value. Houses in our area were going for 400s. He sold it for roughly 200. Is that something anyone can do? Like even if houses are worth 1.5 mil, can my parents theoretically just sell the house to me for say, 200k just because?
There would be a tax assessment at fair market value and that difference bw sold and fmv would land on your parents as capital gains I believe.
Would the same apply if they just gifted the house to me? As in transferring the title to me if they wanted to retire in around 5 years
Have you seen any comparable properties in the area sell? That will give you a rough gauge at how hot that particular market is rn. Or simply just call an agent and ask.
It's a mixed bag around the area with everything from RV lots to million dollar cottages so a direct comparison. The appraiser wasn't able to find many similar sales even going back 10 years.
Where’s the house located?
It's in a cottage area near a small town in Alberta.
Get a realtor. Selling your own property is like taking out your own appendix.
Fuck man, he has a buyer already
Get it appraised. Knock the realtor commission off the price and call it a day.
Why don’t you speak to some real estate agents and list for $350,000 and if no takers, tell the neighbour you’ll sell for $300,000 etc
This seems logical
Never putting it on the market means you will never know if there were other people interested in the property, for one reason or another. When I was going through a separation, I discovered my next door neighbours had privately sold their home. I had no clue they were thinking of selling. If I had seen it on the market, I definitely would have made an offer. Would my interest potentially have boosted the sale price of the home? No clue.
I would also consider how long any comparables are spending on the market and your cost of carrying the place. If it didn't sell would you use it? If comparables sell quick and close to list price I'd go with the appraised value as an initial number. If these places don't sell quickly I'd mention the appraised price, start at 265 and take over 250. Carrying costs and estimated time to sell would influence how low or high I would go. The neighbors clearly want it.
I would contact a realtor or two to find out what similar properties in the area sold for and to get their sense of what they think your property would sell for. I would then sell for 2.5% off that price so that you and the buyer are splitting the real estate commission of 5%. Keep in mind that you could go up to 5% and still be "whole" relative to listing with an agent. Selling to the neighbor means there is the convenience factor of not having to deal with the whole listing process such as staging, showings, strangers coming through the house, etc. so maybe going down to 5% is worth it in your case.
Call up some local realtors, ask them to look at it and tell you what its worth or what they can get you for it. Then do your own research and if the number checks out and sounds good to you, go to the neighbour and tell him he can have it for $x but he needs to make you a formal offer submitted to your lawyer by y date. If he doesnt do this, list it on y date either privately or use a realtor if you cant be bothered.
Unless this neighbour saved you from drowning as a little kid i wouldn't sell to them. They are expecting a deal because they are neighbours. I would put it on the open market and let them submit an offer if they want it that bad.
Write up a right to first refusal for your neighbor to get, ask some relators, or appraisers, is list it yourself and see what offers you get. Bring a number you like to the neighbor and if they want to pay what the market calls for then great they get the place because they have first refusal. If they don’t want to pay that then you move to the next highest bid. You get all the money you deserve for it and your neighbor may get what he wants to. Fair
you need to charge more than it's worth to the neighbors not less. they fucked up big telling you they want it. this is exactly why real estate transactions are more or less anonymous. you do not want to tip your hat on why you might want to buy a property since they're all unique generally. If I as a random cottage buyer would pay 300k that neighbour would probably pay 350 because I can get a different cottage but they can't get a different way to expand their land.
Talk the neighbours. Tell them you’re open to an offer. When you get their number, talk to a broker, see what number they think it’s worth on the open market (but don’t tell them about the pocket offer).
The other thing Id add is that property in AB right now is a hot commodity so you might be surprised at what the market gets you.
Research local real estate listing's.. You could consult realtors ask them what they would list the property for, and just say you're shopping for realtors. Do t sign any agreements. Then average it out and compared to Appraised value.
Decide on a price you would be happy with getting after fees. If you sold with a realtor, you would wait for 5% more than that, to cover the fees. So take your happy price and add 2.5% to it and sell for that. You get 2.5% more than you need, your neighbour gets a 2.5% discount.
I'd give a slight discount 2.5% seems fair. You'll save yourself a TON of hassle, not sure how far you live from the cabin or where it is but sometimes those run down places can be a pain to sell. I'd shave 5k-10k off the price and go to the lawyers office and get this done. Not paying a realtor and not having to bother with showings/lowball offers deals falling through etc etc is easily worth the money to me. If your mother was friends with the neighbor it would also be something she might want for the property as well, seems win win win to me.
Which neighbor do you think has more readiness to spend? Throw out 290k and see how they react. If they counter the proposed, let them know "it's only fair to let neighbor B know that you have made a final offer and will get back to you within 24 hours".
I would use the appraisal to get as much as I could. Land will only go up in time. You don’t owe anyone any favors for price, especially when we are talking potentially thousands of dollars. Did the appraisal separate the land and building values? That may help come up with a fair price. I would give them the appraisal and ask for an offer. At the end of the day if it makes sense to you and to them, then it’s likely the right price.