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Oops, I meant 'worth to you'. Valuations, while often befuddling, are supposed to be based on the economic theory of finding a buyer in a reasonable amount of time. If a certain set of circumstances came to fruition I believe you could sell a $500k property for $1mil but that would be...

My advice is to carry out a feasibility study on what it is worth to you, figure out how much you are willing to pay for it and then offer far less than that. As always, you have no idea what the seller's motivation for selling is and often people acquire properties for a song.