how much is to much.

[callmefence]

A pasture that joins you comes up for sale.
It's way good land for your area. Even has a established coastal , Kline Hayfield. It would greatly increase your carrying capacity. You plan on living on your place for your life. And you just really ****ing WANT IT.

Sellers gave in a little bit, but knows he's got you by the shorts. At what % over appraisal do you become a fool.

 

[artesianspringsfarm]

A pasture that joins you comes up for sale.
It's way good land for your area. Even has a established coastal , Kline Hayfield. It would greatly increase your carrying capacity. You plan on living on your place for your life. And you just really be nice WANT IT.

Sellers gave in a little bit, but knows he's got you by the shorts. At what % over appraisal do you become a fool.

I don't know but I am just about to find out myself. I'm convincing myself I will pay 125% of market value due to how strategic it is for my goals and the downsides of not getting it. Would love to hear what you land at.

 

[skyhightree1]

A pasture that joins you comes up for sale.
It's way good land for your area. Even has a established coastal , Kline Hayfield. It would greatly increase your carrying capacity. You plan on living on your place for your life. And you just really be nice WANT IT.

Sellers gave in a little bit, but knows he's got you by the shorts. At what % over appraisal do you become a fool.

I have paid double what something was valued because I wanted that area to be locked down without people having right of ways best decision I made but if a place fenced has water and established pasture or fields ill give a lil more depending on how much I like the place

 

[Cross-7]

I'm in a similar situation.
I'm thinking I'll over pay to get it as long as it can make the payments, but they will only loan 75% of appraised value.
The upfront out of pocket will never be recouped

If it can't pay for itself then I'd pass on it

 

[TexasBred]

Tough question. Hate it when someone gouges you and expects you to just smile and put up with it. Being adjoining property gives it more value to you anyway as well as the improved grasses. Multiple appraisals usually give a pretty good spread in value. Just depends on the appraiser. Id' make an offer I felt comfortable with and see what happens....sit back and let the seller think on it a while.

 

[M-5]

If appraisal is 2500 an acre I would go up to 40% (3500) per acre. or pay what they want for land but try to get added value in something else tangible < Equipment , tractor, free lease on other property etc

 

[Rafter S]

You're the only one that knows what it's worth to you and how bad you want it, but look at it like this. If you decide to pass on it, then for the rest of your life you may regret it. Of course you can regret either decision, but how likely are you to spend the rest of your life regretting it if you do buy it?

 

[Bestoutwest]

If it can't pay for itself then I'd pass on it

Good advice.

 

[HDRider]

Do you have a feel for how long it will sit on the market?

 

[Cross-7]

Say it's a 200k property
Asking is 250k
75% loan 150k
Leaves 100k out of pocket
Payment of about 15k a year
If it can make the payment ?

The problem is if a situation arises and it has to be sold
It's only worth 200k and you lose 50k plus the interest paid

 

[HDRider]

Use a phantom buyer.

 

[Farm Fence Solutions]

For the most part, land will only change hands once in your lifetime. I'm guilty of throwing a little fencing $ into a deal to make it pencil out, and I've not regretted that in the long run. I've never heard anybody say "I sure wish I had less land".

 

[Bestoutwest]

Use a phantom buyer.

How do you do that? Create a corporation?

 

[Son of Butch]

I've never heard anybody say "I sure wish I had less land".

Except when paying property tax... especially any significant lake shore.
Depends on location, in some you have the honor of being taxed well out into the lake.
I assume no unusual property taxes involved in Texas and even if that is, it all is already factored into any appraisals.

 

[HDRider]

Use a phantom buyer.

How do you do that? Create a corporation?

Have someone act on your behalf.

 

[True Grit Farms]

I've let land go that I've really wanted plenty of times, I refuse to over pay for something I know the value on. Is there any chance of a lease with the option of first refusal to buy possible? It's your money do as you please, but take into account that if something happens to you your family will have to deal with the property.

 

[Cross-7]

I was thinking in terms of my own situation.

Say youre paying cash money and not financing.
What would your ROI vs what you're getting on that cash now ?

 

[Hunter]

My dad has said that his worst investment was buying land b/c he was never going to sell it.
Obviously that is only in regards to money and not personal enjoyment.

This is a good topic as I am also looking at some land but it needs a lot of fence work and I am not sure what I want to offer.

 

[pdubdo]

Sometimes checking your own comps can give you a better/more realistic picture of what land is selling for in your area. Appraisers sometimes just pull the minimum (I think 3) and are done with it. I bought land 2 years ago and the comps ranged from 1795/acre to 4300/acre. Dug in and saw what factors raised the price on certain properties and helped me feel better about my final decision.

 

[Son of Butch]

My dad has said that his worst investment was buying land b/c he was never going to sell it.
Obviously that is only in regards to money and not personal enjoyment.

This is a good topic as I am also looking at some land but it needs a lot of fence work and I am not sure what
I want to offer.

Your Dad shows wisdom regarding investments; as a 'true investment' is only measured in $ and personal feelings
mean nothing. It's human nature to over value intangibles as an excuse for making poor choices when investing.

Unsolicited advice:
Consult with your Dad for his opinion on the land value and fencing costs ect before making an offer.
Not saying you have to do what he says... but seems he would be a good sounding board and resource to use.