This entry is to ask for an opinion from real estate agents or homeowners who could imagine themselves in this position. Here is the situation: A new interchange is built on the Interstate with a cloverleaf type design and the road crossing the interstate is upgraded to a four lane highway. There are numerous strictly residential neighborhoods with Homeowners Restrictions and Covenants that say the land can be used for residential only. However, the nearby cities on each side of the interstate are planning this area to have a great deal of upscale commercial growth. A large Target Supercenter/Shopping Center is put in on one quandrant on previous farmland. A YMCA, shops, restaurants, church, housing, and a park are put on another quadrant. A big box pharmacy is put on a nearby corner opposite a Harris Teeter Shopping Center. The value on all the residential neighborhoods (two are large doublewide neighborhoods and the others are brick and vinyl single family home neighborhoods) are now possible for commercial values provided 2/3 of the homeowner's will sign petitions to remove their neighborhood's restrictions. That is the basic scenario.
Numerous Realtor's are offering to list and market these homes at starter commercial values; investor's are purchasing some properties. Petitions are being written by attorney's for removal of restrictions. Developers and some businesses are coming in with offers for the property that lies directly on the highway. However, one particular agent is coming in to each neighborhood and contacting all homeowners both at the highway and far back in offering to list the entire neighborhood, in fact, requiring that she represent the entire neighborhood to sell it as a whole. She is presenting to these owners that she can get them about $200,000 per acre more than any other agent is saying is likely. And, they are only to sign her petition to remove restrictions and to rescind any signatures they have put on other such petitions. She promises that if the entire neighborhood will stick together, she will sell it as one piece to a big developer who won't bat an eye at a price as high as $500,000 per acre. Her listing agreements even say the neighborhood will be sold as a whole only. However, some property owners are already listed with other agents and some property owners are choosing to not list with her but with other agents.
Now the problems are beginning. Property owners along the highway listed with other agents have received offers on their properties that they would like to accept. However, this agent will not release the petition to these people so they can rescind the residential restrictions. They are stuck. Because their property is right on the highway and naturally worth a little more, offers she is negotiating are for the same price per acre for the entire neighborhood and does not offer them more. At the front of another neighborhood, an investor bought the properties lining the highway before this agent was ever involved here and is now considering developing them and requesting rezoning changes to commercial in line with the desired type of businesses the city wants. However, she controls the restrictions to that neighborhood as well and will not release them.
What is your opinion of this situation? I would especially love to hear from folks who may have witnessed a similar situation in a residential to commercial conversion. What is the best and most fair way to get these homeowners top price for their properties and not step on anyone's individual property rights?
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