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Joined: Feb 2004
Posts: 19,221 Likes: 3
Campfire Ranger
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Campfire Ranger
Joined: Feb 2004
Posts: 19,221 Likes: 3 |
Damn. In my area a nicely wooded 160 acre parcel would go for $1,000-$1,200 an acre. The owner is asking a lot; but it is neighboring property that you and your family will be able to use and enjoy for the rest of your lives. I don't like to borrow money for anything, either, but I think if you can swing it without spending the next 20 years eating beans and driving beater cars, you should go talk to the owner. Explain how you want to use it, what you think a realistic price is, and see where he really is on it. If you sit on it figuring to wait a few years and some developer buys it, you'll be ticked off at yourself as long as you live. We had 50 acres of all timber sell for $5000 an acre not far from our 46 acres. This would be right at 50 miles southwest of Des Moines. This sale went through last year so I think that is a current price for big timber around south central Iowa. The only thing I can see this ground being $5000 is timber harvest and deer hunting. There is only a small tin barn on the property, nothing tillable and no house. kwg
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
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Joined: Sep 2011
Posts: 60,941 Likes: 15
Campfire Kahuna
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Campfire Kahuna
Joined: Sep 2011
Posts: 60,941 Likes: 15 |
If there are walnut trees on that, the walnut lumber is worth a lot.
These premises insured by a Sheltie in Training ,--- and Cooey.o
"May the Good Lord take a likin' to you"
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Joined: May 2001
Posts: 18,345 Likes: 1
Campfire Ranger
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Campfire Ranger
Joined: May 2001
Posts: 18,345 Likes: 1 |
What are the property taxes on a 1.6M piece of land. Can you put it in AG/Timber deferral?
Carpe' Scrotum
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Joined: Feb 2011
Posts: 26,389 Likes: 6
Campfire Ranger
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Campfire Ranger
Joined: Feb 2011
Posts: 26,389 Likes: 6 |
Damn. In my area a nicely wooded 160 acre parcel would go for $1,000-$1,200 an acre. The owner is asking a lot; but it is neighboring property that you and your family will be able to use and enjoy for the rest of your lives. I don't like to borrow money for anything, either, but I think if you can swing it without spending the next 20 years eating beans and driving beater cars, you should go talk to the owner. Explain how you want to use it, what you think a realistic price is, and see where he really is on it. If you sit on it figuring to wait a few years and some developer buys it, you'll be ticked off at yourself as long as you live. We had 50 acres of all timber sell for $5000 an acre not far from our 46 acres. This would be right at 50 miles southwest of Des Moines. This sale went through last year so I think that is a current price for big timber around south central Iowa. The only thing I can see this ground being $5000 is timber harvest and deer hunting. There is only a small tin barn on the property, nothing tillable and no house. kwg It's all about the deer in those parts. My brother owns land near there for one reason, giant deer.
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Joined: Jan 2006
Posts: 5,678 Likes: 3
Campfire Tracker
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Campfire Tracker
Joined: Jan 2006
Posts: 5,678 Likes: 3 |
Property values …………….location location location. About 5 years ago we bought 40+ acres in TN. Half the people we know said we paid to much. The other half think we got a great deal. The half that said we paid to much kept on telling us how much they paid in 1980, 1985, 1990, etc.
If you are not buying it to flip for a profit the only thing that matters is if you are happy with the price. Otherwise check some comps for similar property's and form an opinion.
My biggest fear is when I die my wife will sell my guns for what I told her they cost.
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Joined: Jul 2017
Posts: 1,556
Campfire Regular
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Campfire Regular
Joined: Jul 2017
Posts: 1,556 |
One has to keep everything in perspective. It is location, location, location. if you think 10K is a lot per acre take a look at lakeshore property up north...Ugggggggg
living the good life every day
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Joined: Feb 2011
Posts: 741
Campfire Regular
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Campfire Regular
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I’m nuts for land, especially land near mine. In this case, the purchase just doesn’t make sense. If development next door is imminent, it sounds like you may be better off selling yours and upgrading elsewhere.
To go into debt for land that you’d be using in a way that isn’t consistent with its highest value use is unwise, financially.
Also, conservation easements came to mind as a way to help with the $ end of it. Here, I’m not sure that’s be wise either. You’d be screwing the future heirs to the land to help yourself. Such an easement would effectively remove its value as potential development.
Last edited by turkish; 10/24/19.
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Joined: Nov 2015
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Campfire Outfitter
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Campfire Outfitter
Joined: Nov 2015
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Joined: Jan 2005
Posts: 12,359
Campfire Outfitter
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Campfire Outfitter
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Bedford. and guys,,,,, it is not $1.6 million any more...
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Joined: Jan 2005
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Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2005
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I would not come close to 10k/acre if I but an offer in. They just reduced and now it's 8.8k/acre. and, completely cut over within last 15 yrs
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Joined: Jan 2012
Posts: 6,791
Campfire Tracker
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Campfire Tracker
Joined: Jan 2012
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Land next door only comes up for sale on adverage one time in your lifetime...but for 10k/acre 160 acres? That's way too much I don't care what kind of bucks it has...unless it has the potential to carry itself and at leas make part of the payments..
Sounds like it won't generate any income ..
Even if you had that kind of cash ....just think how many trips to Africa and or Canada Alaska you could do...
Or buy land in Missouri Kansas Nebraska...for half or less with probbly bigger bucks and likely some income potential..
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Joined: Oct 2013
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Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2013
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Land next door only comes up for sale on adverage one time in your lifetime...but for 10k/acre 160 acres? That's way too much I don't care what kind of bucks it has...unless it has the potential to carry itself and at leas make part of the payments..
Sounds like it won't generate any income ..
Even if you had that kind of cash ....just think how many trips to Africa and or Canada Alaska you could do...
Or buy land in Missouri Kansas Nebraska...for half or less with probbly bigger bucks and likely some income potential.. You don't own land do you?
Writing here is Prohibited by the authorities.
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Joined: Oct 2013
Posts: 8,490
Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2013
Posts: 8,490 |
Bedford. and guys,,,,, it is not $1.6 million any more... And then average in the cost of your family farm and your cost becomes more reasonable, add to that your family enjoyment and the cost again decline, our land was the best investment we ever made,
Last edited by jimy; 10/24/19.
Writing here is Prohibited by the authorities.
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Joined: Sep 2013
Posts: 11,269
Campfire Outfitter
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Joined: Sep 2013
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Bedford. and guys,,,,, it is not $1.6 million any more... And then average in the cost of your family farm and your cost becomes more reasonable, add to that your family enjoyment and the cost again decline, our land was the best investment we ever made, Next to my wife and kids, having land has been my living dream. I am lucky.
Gun Shows are almost as comical as boat ramps in the Spring.
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Joined: Dec 2008
Posts: 6,939
Campfire Tracker
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Campfire Tracker
Joined: Dec 2008
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But in combining them, DO NOT put up your existing property as collateral. If the economy goes south, you could lose what you already have.
This is sound wisdom. If it's been on the market for about 6 months, the contract with the agency could be nearing an end. Give the guy a call and ask him how much longer the contract is good for. Ask him how he came up with that price, or was it the agent that did. Many times the agent is just doing what the owner asks him to, whether it makes sense or not. If it was the owner that came up with the price, tell him you will call him back when he is no longer under contract. If the agent came up with the price, tell him to fire the agent.  During the course of the conversation ask him why he is selling the land. Try to get a feel for his priority. For some people the priority is getting as much as he can, and he doesn't care how long it takes. For others they need the money for some particular reason and might be more flexible on the price. Regardless try to find out. Ask how long he's willing to sit on it, if he got a "reasonable price". To finance it, (which is tough with raw land) it has to appraise. Ask if he's had it appraised. Don't show your cards until the property is no longer under agency. Just let on that you MIGHT be interested at the right price. I don't believe for a minute they are taking 25 deer off that property every year unless they are just shooting anything with fur. This is good advice. My understanding though, is that if the realtor knows or finds out you contacted the seller while the contract was in place, he can push to force the seller to pay him his commission, even if you consummate the deal after the contract has expired. I might have a third party contact the seller direct. Just feel him out as CJ suggested. I would probably not consider buying this land given all the knowns; minimal income potential, landlocked by development, price, etc. If I was leaning towards taking on 3/4s of a million in debt, it would definitely be something that I could enjoy and produce some income to offset.
Montana MOFO
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Joined: Jun 2012
Posts: 4,774
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Campfire Tracker
Joined: Jun 2012
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I would kick myself if the land next door came up for sale and I didn't make a real hard run at it.
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Joined: Sep 2011
Posts: 60,941 Likes: 15
Campfire Kahuna
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Campfire Kahuna
Joined: Sep 2011
Posts: 60,941 Likes: 15 |
The short story is, a man near me was buying up prime Iowa land, and looking great. I'm talking a few thousand acres, the mid 80's came, and farm prices dropped, interest went way up. He lost everything but the old home place.
That man had a degree in business from Yale.
These premises insured by a Sheltie in Training ,--- and Cooey.o
"May the Good Lord take a likin' to you"
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Joined: Jan 2005
Posts: 12,359
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2005
Posts: 12,359 |
The short story is, a man near me was buying up prime Iowa land, and looking great. I'm talking a few thousand acres, the mid 80's came, and farm prices dropped, interest went way up. He lost everything but the old home place.
That man had a degree in business from Yale. Yes! Millions of folks not yet born in the early '80s that think Real estate / land ALWAYS goes up. Not so, chillen, not so.
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Joined: Dec 2011
Posts: 1,041
Campfire Regular
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OP
Campfire Regular
Joined: Dec 2011
Posts: 1,041 |
Another price drop on this of over $200k, to just under $7500/acre. Two price drops in less than a year on the market. Not sure what to make of that other than they are not getting any interest. The most I would pay is 5k/acre. Just going to keep an eye on it for now and see if it keeps dropping.
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