Someone wants to buy my investment property for unit development…What is a fair price here?

Hi everyone,

I have a local developer who is interested in purchasing my investment property to eventually develop units. We have no idea of a fair price and whether a normal 6 week settlement is suitable or to take an option settlement (1% now and the rest in 12 months time). He has offered a higher option settlement of $550,000 or $500,000 for a 6 week settlement.

The house is in the Parramatta area of NSW, it is 700 sqm, near a railway station, shops. We are currently renting the house out at $250 per week.

We assume that the developer will eventually purchase the two houses next to ours as they are also zoned for unit development.

Can anyone give us an idea of how to work what is a fair price for our house? And is it better to accept a lower price (but get the cash in hand) OR to go with an option 12 month settlement?

Thanks everyone in advance for your replies,

Marsmac