DLD":2h85irq7 said:
55 acres across the road from us brought $2K an acre. It's solid blackjacks with an old run down house and a couple run down sheds. There is a water well, but the water is really hard. No ponds or running water, fences bad on 3 sides, just fair on the 4th. One side fronts a blacktop county road. If it had been cleared, with decent fences, it MIGHT have brought that just because of the smaller acreage, if it had been much bigger more like $1600 to maybe $1800. No mineral rights included.
Guy that owned it was on disability, lived in an old mobile home there, very rarely saw him. First I knew it was for sale I saw a sign from real estate agency that specializes in hunting properties - I went by and talked to him, he said they were asking $2k an acre. I told him I'd give him $1k an acre, $5k today and the rest as soon as the title work was done, he said if they can't sell it in 30 days I'll take it. It sold in less than 2 weeks.
That is a perfect description of what I see in this county. It stays on the market for several months. It usually sells when they get down to about $1200 acre. The problem with the properties like you describe is the cost of putting them into production:
1. Grading and clearing including renovating pasture.
2. Utilities. Electric/water. Watering stations.
3. Infrastructure for feed, housing equipment, roads, etc.
4. Fencing.
How do I know? I did it. I bought these 80 acres for 1K per acre. I bought a Cat D3G and cleared and graded for infrastructure. I have put $25,000 in fencing. If it was not for the cost share program, I would be under water.