I live on a block with three empty lots immediately adjoining mine. I want to buy them. The seller knows that, so he won't sell them to me at what I think is a reasonable price. He continues to list the properties at about 250% of what I think they are worth, (and about 300% of what comparable properties are selling for in the same market).

This situation actually works for him, as he isn't falling all over himself to get out now, (owns the property outright). He feels that he knows that, if he needs to sell it, I will buy it at a reasonable price. Until he needs to sell it, he can continue to list it for two and half time what it is worth. If someone buys it, great. If not, when he needs the money, he can sell to me.

The only reason any of this is happening is because the properties I want to buy are next door... Until I buy the property from him, I have to look out the window at them. If I am afraid he will sell them to someone else, I will have to decide whether or not meet their price. If they were someplace else, I wouldn't bother with any of this.

Therefore, living next door to property you want to buy brings an unnatural market force to bear...

YES, he is a fool.

Put your house on the market at a price that undercuts him. Then use a shadow buyer to make him an offer.

Have you ever watched the movie "Jean de Fleurette?" Evil plot, but they got the neighbors' land. Well, until Act II in Manon of the Spring. Makes you really take a hard look at the "sellers" and "buyers" and how we all see a little of our souls because we must have what we must have. And, of course, there are the nonplayers in the real estate game, who all turn a blind eye ... until they, too, have to play. Watch the film ... a real eye opener. Also, I think all first-time home buyers should watch Pacific Heights. And don't laugh and think a renter can't pull sh-- on home owners ... just take a look at the laws that protect renters in the Bay Area. Back in 2000, if you needed to toss a renter out, you had to issue them a $500 check. And then another once they moved. That's provided you can get them to move.