Now, if it were me living there, I'd probably try to rope together a counteroffer more in my price range, and set down to some bargaining. The idea of trying to run someone else off their private property would NOT occur to me.
Yep. The homeowners would be better off forming a coalition and letting him decide between 1) a fair price for all the land and 2) not one damn cent from any of them. I suspect, faced with the prospect of not recouping anything, he's sell them the property at a more reasonable price.