I would definatly put a new fence on the survey line.
Good fences make good nieghbors, especially if they are in the right spot.
One thing no one else touched on is if either one of you has a mortgage or if either one of you sells your property. Banks want a proper survey. Lines need to be in the proper spot.
I wouldn"t offer to sell the 80ft to him, even at 3700 an acre (which around here isn"t squat), then it just looks like you are greedy and want $$$
Don"t feel bad if your nieghbor gets upset if it isn"t in his interest, you need to look out for yours. This is America, and so far we can still own property
Get a local, sharp lawyer, even if it is just for consultation
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