Land prices

[Texas Gal]

I had someone ask me how much I thought improving their place .... clearing brush, building a couple of tanks and planting grass, would effect the value. I told them it would increase it but had no idea how much. This is in area where most any kind of acreage starts around $2,500/acre ( without any minerals) and is within 90 minutes of a large metro area ( Dallas/Fort Worth). I haven't seriously priced land in almost 20 years so I'm out of touch.

Any thoughts??

 

[backhoeboogie]

It seems I get better deals when someone approaches me. The last two places I bought (very small acreage) the land owners offered up below market prices.

There is a lot of land out there for sale that aint selling and it won't sell for the prices they are asking.

There are always situations where someone from up north moves in and is accustom to paying mega-bucks for land. In their opinion, all land here is cheap. They buy the land. Then the tax appraiser wants to raise everyone's land values to match what the fool paid.

Hence, I don't think you can look at the prices advertised and get a true value of what land is worth. You can go to the court house and watch forclosures get auctioned and see what someone is willing to pay.

 

[cowboy43]

In our area people are not looking for imroved land, rugged brush land sells the highest , they are looking to subdivide or use it for wildlife, and weekend homes. I think with the cost of improvements you would be lucky to get your investment back.

 

[bigbull338]

sometimes adding improvements to a place in hopes of increasing its sale value will blow up in your face.i know a guy that bought a 1500ac ranch.an he went in with dozers cleaning out an building pools building some new fences putting in nice gates dozing down an old set of pens an an old dairy barn.an when all that was done he wanted $4000 to $5000 an ac,place never sold at that.i think he gave a $1000 an ac an sold it maybe for $1500 an ac.so i figure he lost some big money on the deal.

 

[cow pollinater]

Bankers will look at the land as whatever it's intended use is worth and it's past production records regardless of how much money has been dumped into "improvements". So anything above and beyond it's appraisal value will have to be cash out of pocket for a potential buyer... Unless you can convince someone else to fork over whatever your freind did for the same improvements they're likely just SOL. Most likely it will make the place easier to sell but doesn't absolutely make it worth MORE.

 

[cross_7]

I had someone ask me how much I thought improving their place .... clearing brush, building a couple of tanks and planting grass, would effect the value. I told them it would increase it but had no idea how much. This is in area where most any kind of acreage starts around $2,500/acre ( without any minerals) and is within 90 minutes of a large metro area ( Dallas/Fort Worth). I haven't seriously priced land in almost 20 years so I'm out of touch.

Any thoughts??

based on my limited experience there are lots of people that are wanting a hunting/recreation/weekend get away place.
i think any improvements should be with that in mind but be sure that you are not spending more than you'll get in return.
ponds are a good investment as long as you don't break the bank doing it.
i don't think it would pay to thin the brush/trees and most hunters like the thick cover.
a small cabin of some sort is a big plus and i've seen some that are fairly reasonable that could increase the selling price quite a bit.
might list it with a realtor and price pretty high to see what kind of feed back you get.

 

[Jogeephus]

There was a study done on this several years ago and they found it made no difference to the actual calculated value of the land however people who added "curb appeal" usually ended up getting what they were asking and on the whole averaged 20% more for their property. Like mentioned, you can spend more than you are going to get out of it and it is "curb appeal" so you need to just dress up what is readily seen like the entrance and things along the roads. You are selling them a dream and inspiration. So tell them to drag the ford pinto off the blocks and hide it somewhere out of sight. :nod:

 

[Texas Gal]

Thanks for the feedback ;y'all brought up some interesting issues. These folks inherited the land and are debating what to do with it. The wife's thinking they'll become millionaires by selling while the husband is thinking more long term. Glad I'm not involved in that decision! I can't see selling family land that's been paid off forever when all you have to do is keep up the taxes, which are nominal.

 

[bigbull338]

Thanks for the feedback ;y'all brought up some interesting issues. These folks inherited the land and are debating what to do with it. The wife's thinking they'll become millionaires by selling while the husband is thinking more long term. Glad I'm not involved in that decision! I can't see selling family land that's been paid off forever when all you have to do is keep up the taxes, which are nominal.

some people have no loyalty to whats been in the family for generations.an want to pass it down to their kids.they aint making no more land so you better hang on to what you got.

 

[TexasBred]

Thanks for the feedback ;y'all brought up some interesting issues. These folks inherited the land and are debating what to do with it. The wife's thinking they'll become millionaires by selling while the husband is thinking more long term. Glad I'm not involved in that decision! I can't see selling family land that's been paid off forever when all you have to do is keep up the taxes, which are nominal.

some people have no loyalty to whats been in the family for generations.an want to pass it down to their kids.they aint making no more land so you better hang on to what you got.

When you live 2000 miles from the inherited land it often is more of a liability than an asset and best turned into something with real value to you...such as cash or a note receivable.

 

[Caustic Burno]

Price of land never changes it is always what the market can bear. I remember I could have bought the 200 acres across the road for 200 dollars an acre. That was high dollar when I was making four bucks an hour. Today they want 3000 an acre it is actually cheaper from a percent of income today versus 35 years ago.

 

[backhoeboogie]

Thanks for the feedback ;y'all brought up some interesting issues. These folks inherited the land and are debating what to do with it. The wife's thinking they'll become millionaires by selling while the husband is thinking more long term. Glad I'm not involved in that decision! I can't see selling family land that's been paid off forever when all you have to do is keep up the taxes, which are nominal.

some people have no loyalty to whats been in the family for generations.an want to pass it down to their kids.they aint making no more land so you better hang on to what you got.

When you live 2000 miles from the inherited land it often is more of a liability than an asset and best turned into something with real value to you...such as cash or a note receivable.

They don't need to come back sreaming foul when the mineral lease rights are worth more than what they sold the land for. It is widespread and there is a lot of whining going on too. Even seen it in my own family. They sold the land with minerals. Their loss. I told them not to do it.

 

[Texas Gal]

Thanks for the feedback ;y'all brought up some interesting issues. These folks inherited the land and are debating what to do with it. The wife's thinking they'll become millionaires by selling while the husband is thinking more long term. Glad I'm not involved in that decision! I can't see selling family land that's been paid off forever when all you have to do is keep up the taxes, which are nominal.

some people have no loyalty to whats been in the family for generations.an want to pass it down to their kids.they aint making no more land so you better hang on to what you got.

When you live 2000 miles from the inherited land it often is more of a liability than an asset and best turned into something with real value to you...such as cash or a note receivable.

Yes, sir, I'll grant you that. In this case, the inheritance is in the next county AND they are the sole heirs. Like I said, I don't have a dog in that fight. It should prove interesting to observe, though. Hope it doesn't cause marital problems.

 

[john250]

I had someone ask me how much I thought improving their place .... clearing brush, building a couple of tanks and planting grass, would effect the value. I told them it would increase it but had no idea how much. This is in area where most any kind of acreage starts around $2,500/acre ( without any minerals) and is within 90 minutes of a large metro area ( Dallas/Fort Worth). I haven't seriously priced land in almost 20 years so I'm out of touch.

Any thoughts??

Your land price is driven by its' development value. Not by ag value. I wouldn't spend a dime other than keeping it mowed, but that's me. I assume you'll be offering it soon, so why spend? JMO.

 

[TexasBred]

Yes, sir, I'll grant you that. In this case, the inheritance is in the next county AND they are the sole heirs. Like I said, I don't have a dog in that fight. It should prove interesting to observe, though. Hope it doesn't cause marital problems.

A lot of land laying around growing up in brush and other desirable junk because of absentee land owners. Some can't sell because heirs can't agree on everything. Some want to hold on to it because it has been in the family a long time and some actually do the research to find out what it's worth (with or without minerals) and put it on the market as they have no real use for it in their lives. None of the above is really wrong. As CB said it will always bring what it's worth if you have an informed seller and buyer. Seems a lot of wealthy folks from DFW area have skewed the market down this way and prices are extremely high because they're looking for tax shelters and money is no problem.

 

[Dave]

There are always situations where someone from up north moves in and is accustom to paying mega-bucks for land

We have the opposite problem. It is people from the south moving in. Of course the only people north of us are Canadians.

 

[backhoeboogie]

There are always situations where someone from up north moves in and is accustom to paying mega-bucks for land

We have the opposite problem. It is people from the south moving in. Of course the only people north of us are Canadians.

I was almost one of those people Dave.

You've got a nice place to live there. It makes sense. I did a year in Vancouver and a little bit more in Longview. My baby girl was born in Vancouver in '85.

Trojan was in a mess and PGE made me a heck of an offer back about '89. I was there for a week touring on their nickel. It was such a mess that I neglected the offer. Thank goodness because they shut her down.

PGE was going to buy my place here and apply it to a place there. There were some really nice places for sale on both sides of the Columbia. Real estate folks drove me around for two days looking. I like the area and have cousins in Vancouver. It is easy for me to understand why people would move there.

 

[Dave]

It is easy for me to understand why people would move there.

Please don't say this in public. This is a terrible place. It rains all the time. It is cold, wet, and always cloudy. No one in there right mind would want to live here. That is my story and I am sticking to it.

I understand Trojan was a mess. It is gone now. Those two Whoops plants that never did get finished are just down the valley from me. The cooling towers are still there. The only nucular left running is over at Hanaford.

 

[backhoeboogie]

It is easy for me to understand why people would move there.

Please don't say this in public. This is a terrible place. It rains all the time. It is cold, wet, and always cloudy. No one in there right mind would want to live here. That is my story and I am sticking to it.

I understand Trojan was a mess. It is gone now. Those two Whoops plants that never did get finished are just down the valley from me. The cooling towers are still there. The only nucular left running is over at Hanaford.

Shucks it don't ever rain there. It is a constant drizzle tho.

Nukes are my life. Got friends at Hanaford. Offers that couldn't be refused etc. they moved there. I outta move myself but the grandbabies are here.

We hire 20 engineers, get 'em trained and INPO certified and someone else will pirate them away. Maybe 2 left here 10 years from now. Don't blame 'em for leaving.