Opinion Needed

[TexasBred]

Everybody lines up at the courthouse on sheriff's sale day. Only thing, everybody else knows about it too, especially the realtors, and it usually sells for close to what it's worth.If the property has hidden liens – other loans, an IRS lien, a contractor's lien, etc. – it's possible you'll become responsible for them after purchasing it. That could instantly transform the biggest bargain you ever saw into the most costly mistake you ever made. Hope you got a title policy.

 

[Jeanne - Simme Valley]

Everybody lines up at the courthouse on sheriff's sale day. Only thing, everybody else knows about it too, especially the realtors, and it usually sells for close to what it's worth.If the property has hidden liens – other loans, an IRS lien, a contractor's lien, etc. – it's possible you'll become responsible for them after purchasing it. That could instantly transform the biggest bargain you ever saw into the most costly mistake you ever made. Hope you got a title policy.

TB - we purchased land attached to our farm that the County repossed for back taxes. All houses/lots/farms in auction were with already checked out titles & free of liens. Was "hoping" to really get a great deal - didn't - but it was a fair price.

 

[cow pollinater]

You can make an "as is where is" offer and get the thing into escrow. If you need to borrow to buy the place the bank will want an appraisal before they will lend. Sometimes you can make an offer for what you're willing to pay and agree to handle all apraisal costs, government inspections,etc. Sometimes people just want stuff to get handled for them and if you agree to handle it and give them a little money they're happy.
That may sound fairly dishonest to those of us who are concerened with what things are worth but to someone who just wants everything to stay the same with a minimum of hassle it's a great offer.... In her thinking, it may well be worth the lesser price of you handling the entire deal so that all she has to do is sign.
If that works then you absolutely want a coppy of the apraisel. It may well be worth more than what she wants to sell it to you for. If it is then your net worth looks better when you're ready to grow.
Also, consider her tax situation and yours. You can find alot of common ground if you're willing to sit down and talk about how to structure it so that it's best for her taxes. If you offer her less but can come up with a way to make that sheltered then it's a better deal than more money that she'll get taxed on.

 

[TexasBred]

TB - we purchased land attached to our farm that the County repossed for back taxes. All houses/lots/farms in auction were with already checked out titles & free of liens. Was "hoping" to really get a great deal - didn't - but it was a fair price.

That's good....but not always the case. Often up to the buyer to determine condition of title.

 

[john250]

Skyhigh, I honestly think you aren't seeing the forest for the trees. I looked at a map. You're 25 miles from Richmond and closer than that to I-85 for starters. If you don't want to farm the place, slice it into 4 or more and sell each for what the widow is asking.
Were it me, I'd have a check in the widows hand before the sun goes down Monday. All the caveats mentioned by others apply. Make sure you get a survey and clean title.
I'm in a rough, hilly, wooded area and thats still a great deal. If she lists it with a realtor or auctioneer you'll be looking at a lot more money, I think.

Don't get me wrong I want the land to raise row crops. I just can't afford to pay anymore than 130,000. I wouldn't divde the property I would rather farm it. I see what you are saying and thats an excellent point in which I have not looked at and thats another option. Thanks for opening my eyes to that.

I should leave you alone, but I'm back. :wave:
How much of the 118 acres will raise crops? I hadn't considered that. To me VA is beautiful but mostly pasture and hunting leases. I don't get over the mountains very often.
In Indiana/Ohio anything which will raise crops is selling for $5000+. Really. Now, it is pretty crazy to give $5000/acre for land which may produce 60bu beans in good hands in good years, but if you want it that is the price. Most buyers are adding that land to existing, successful operations so the whole burden doesn't fall on the newest purchased. If you have done your pencilwork and you really can't sleep at more than $130K then put some flowers on the gentleman's grave, do what you can for the widow, but don't count on owning that land unless you can somehow keep it a secret from every realtor and auctioneer in the county. And your aggressive neighbors. In 30yrs I hope you can look back and say you made the right choice. Best wishes.

 

[skyhightree1]

86 acres is what I currently rent for fields and farm. Well yea other farmers have asked about purchasing the property but she has told them I have first option to buy. hopefully its something within my budget and within reason..

 

[Jogeephus]

I'd go ahead and buy it cause it won't matter after Friday anyway. Speaking of which, I can't believe no car dealers have been using this tactic to sell their cars.

 

[skyhightree1]

I'd go ahead and buy it cause it won't matter after Friday anyway. Speaking of which, I can't believe no car dealers have been using this tactic to sell their cars.

LMAO... GOOD POINT...

 

[hillbilly beef man]

130k for 118 acres would be a great deal around here, but beware when her family gets involved. I rented a 31 acre farm in my back door for years. My father and grandfather before me have rented this farm. We all had kept the fences up and helped the landowner at his house anytime he needed help. He had a mill and we let him borrow trucks and equipment anytime his broke down. I considered him a friend. I had tried to buy it from the landowner every year with the same response that he wanted to hold onto it, but he would let me have first dibs on buying it since my family had always been so good to him. I found out he was selling it from the surveyor marking off a lot. Turns out some niece wanted an acre to build on, and this was more important than his word. I was able to buy the rest of the farm, but I am going to have a neighbor 200 ft from my back door in the middle of a now 46 acre farm. Moral of the story, promises mean nothing when family gets involved, and an oral agreement is not worth the paper it is printed on.

 

[backhoeboogie]

and an oral agreement is not worth the paper it is printed on.

Now that there's funny.

 

[skyhightree1]

that is funny

 

[tsmaxx47]

i'd wait till she gave me a price and then counter offer if needed . Who knows she might want less :?

good point gonzo, wait till she names a price, the amount you're comfortable with isn't going to change.

 

[skyhightree1]

I finally got my price... $ 345,000 for the land. I asked how did she come up with that figure she informed me it was a number in her head she liked. I informed her there was no way humanly possible I would pay that much nor could I afford it. She had a non caring attitude then asked me would i come paint all her buildings on her farm... FOR FREE... I informed her I am not interested in the land nor painting your buildings or doing anymore free work. I felt bad but it had to be done.

 

[Jogeephus]

I empathize with you. Been there myself. Just don't blow the bridge just yet.

 

[Anonymous]

I finally got my price... $ 345,000 for the land. I asked how did she come up with that figure she informed me it was a number in her head she liked. I informed her there was no way humanly possible I would pay that much nor could I afford it. She had a non caring attitude then asked me would i come paint all her buildings on her farm... FOR FREE... I informed her I am not interested in the land nor painting your buildings or doing anymore free work. I felt bad but it had to be done.

People always think they're sitting on a gold mine. Let her get some comp sales and a reality check. Then see what she wants for it

 

[TexasBred]

I finally got my price... $ 345,000 for the land. I asked how did she come up with that figure she informed me it was a number in her head she liked. I informed her there was no way humanly possible I would pay that much nor could I afford it. She had a non caring attitude then asked me would i come paint all her buildings on her farm... FOR FREE... I informed her I am not interested in the land nor painting your buildings or doing anymore free work. I felt bad but it had to be done.

People always think they're sitting on a gold mine. Let her get some comp sales and a reality check. Then see what she wants for it

That's the beauty of having a professional appraisal done. Both parties are made aware of property values on comparable properties that have recently sold with adjustments made for meaningful differences. Disregard "asking prices".

 

[cow pollinater]

I think I'd put in a written "as is where is" offer for what you'd like to pay with at least a 90 day chance for her to counter-offer but the longer the better for a lowball offer. If there are liabilities such as underground fuel tanks or water storage ponds that are not up to code you can word the offer so that she understands that those will mean less money in her pocket if she asks for more money from someone else.
As it stands, you're walking away. If you at least make an official offer then you have a chance. You can even make upkeep on her property after the sale a condition to sweeten the pot if you have to.
I bought a bunch of property from an older gentleman and I saved a ton of money simply by handling EVERYTHING for him. It took a while for him to figure it out and he had a few better offers in the mean time from a monetary standpoint but in the end what he wanted was to not worry about it and have the ground go to someone he trusted and I've given him that complete with continueing contacts with certain people who had treated him well.
Don't be scared to make a firm offer. The worst that can happen is she'll say no and as it stands now you've done that to yourself.

 

[highgrit]

I was hoping to see it work out. But right now is a bad time to buy farmland. I guess you might as well make her your best offer. But when I read other farmers had stopped by and talked to her, it didn't look good.

 

[skyhightree1]

I empathize with you. Been there myself. Just don't blow the bridge just yet.

No bridges blown yet but I am not doing anymore free work.

 

[skyhightree1]

Yea, I know the other farmers that stopped by and spoke with her we all said the same thing no way. Now there is a real estate developer that has stop by as well. He may give her that price to put a sub division in there he will make that amount back by 10 times fold. I told her id give her $135,000 and thats it tax accessment on property was $ 168,000. I would hate to see that good farm land get turned into a subdivision but im not rich and can't afford her price.