What are you willing to PAY ??

[M-5]

I know there are tons of variables to the specific regions of the country and land prices vary greatly. But to keep it simple lets say your closest neighbor has decided to sell a small portion of tillable land over 20acres less than 50acres . this portion joins you in any fashion whether it on a boundary line or corner post. What is your going rate for land and what is your heII no rate .

Here avg is 2000 to 2500 and acre. but I have seen some sell for 5k to 8k

 

[dun]

Depends on the land and how much I want it. Timber maybe 1k, really good pasture 2k. That being said, this farm is 75% pasture/hay fields and 25 timber. House and several barns and shops. Was offered just under 3k and turned it down

 

[Son of Butch]

Cheap as possible, but Land adjoining yours is worth at least a 10% premium if necessary to me.

 

[midTN_Brangusman]

Neighbor that joins me has 45 acres of good pasture that I lease, two ponds and a barn. He asked me the other day if I would be interested in purchasing it, he is asking $4,500/acre. I would love to own the land but I can't see paying more than $2,500/acre for pasture land.

 

[Philip-TX]

Cheap as possible, but Land adjoining yours is worth at least a 10% premium if necessary to me.

or 10% DISCOUNT for quick sale....

Depends which side of the fence you are on (so to speak) :cowboy:

 

[callmefence]

I would jump all over it for 4,000

 

[M-5]

I understand Cheap as possible. But on these smaller parcels They tend to sell quick and people wanting a farmette will pay a premium for this sometimes its a good neighbor sometimes not. DO you only consider the land price and offer separate price for EXTRAS . WHat if extras that are included when factored into the land price doubles it. Wouldn't that benefit the value of your land with it driving up the avg cost of property sold in your area???

 

[Dueyb]

A guy can buy what's cheap and have a nice balance sheet in the end, or can buy what's close or makes more sense and likely be happier if he can swing the deal. The way I see it is that there are financial and non-financial costs to moving cows/hay around from farm to farm. Time, fuel, equipment, stress, etc. That farm should be worth more to you as it is more efficient to operate. If/when you decide to rent it out, itall rent for more $/acre then similar smaller tracts. That being said, the neighbor gets an easy sale and typically saves realtor fees selling privately so they should WANT you to buy it. Being a good neighbor prior to the offering goes a long way. I agree these smaller tracts sell for more as more market participants can afford them on a total dollar amount sale price. If you can swing it I wouldn't be afraid to pay 10% over market for adjoining ground. It is a long term investment so you'll be glad you did at some point in the future. Grass farms sell for $2000-2500 and rent for $60-100/acre in my area but probably only one nice one per year in my county sells in the open market.

 

[Deepsouth]

I'd pay the equivalent (same amount ) per acre as one good bred cow would cost.

 

[Dueyb]

I've also heard taking out a fence line between you and a neighbors you just bought is one of the best feelings a farmer gets....and may only get that chance once or twice in a lifetime....depends on your area. I haven't had that chance yet but working on it.

 

[tdc_cattle]

Probably whatever I could afford to/bank loan me.

We got a first right of refusal on the neighboring land when bought the place that is the center of our cattle opperation.

We gave a slight premium to get that, and I really don't know if we'd have bought the place without it. Ill do any and everything possible to get the rest when the time comes.

 

[True Grit Farms]

Farm land is worth 3-4 times what cut over is worth. You'll never see a profit on it, except for the grandkids living there one day. If I could afford the payments I'd buy it.

 

[Dueyb]

I like your thinking tdc. First Right of Refusal is great because it takes you (the most motivated buyer) out of the competition when they decide to auction or list the farm. We did the same thing on a small house and 5 acres that adjoins our farm so we can control who lives there if it's not us.

 

[Aaron]

Went through this last fall with neighbor. I wanted an adjoining 80, of which 30 was poor hayfield and the rest bush pasture - lots of rock and poor fence. I was comfortable at $250 per acre, willing to do $375 and my crazy, insane, just because it is close and joins with my own price was $500/acre. He wouldn't sell it separately from the rest of his land and ended up getting about $650/acre. Worked out well for him, but someone down the line is going to be taking a pay cut on that land. Lots of land coming up here for sale in the next 3 years, so better deals will be available.

 

[J&D Cattle]

My house sits on 40 acres and is right against town. I gave $2,000/acre 5 years ago and thought it was a bargain. I'd gladly give the neighbor who has 37 acres behind me $3,000. His piece also borders town although it a different road. In comparison I'm trying to get closed on a 120 farm approx 12 miles from town that is half pasture and half timber and will probably end up giving $1375/acre for it.

 

[tdc_cattle]

I like your thinking tdc. First Right of Refusal is great because it takes you (the most motivated buyer) out of the competition when they decide to auction or list the farm. We did the same thing on a small house and 5 acres that adjoins our farm so we can control who lives there if it's not us.

It also has the added bonus that the part that they sold off to us makes the rest quite a bit less desirable without it.

 

[thommoos]

What was I willing to pay, 21.5 pasture came up next door I dragged my feet long enough for him to get bored with it I still paid $4k and acre, 900 more than i paid for my original 30 acres.

 

[TexasBred]

Sold some three years ago for $7500 and retained minerals. Don't know that it has gone up much but certainly hasn't gone down. Crazy thing is that people are snapping it up about as soon as realtor gets a sign up.

 

[callmefence]

Sold some three years ago for $7500 and retained minerals. Don't know that it has gone up much but certainly hasn't gone down. Crazy thing is that people are snapping it up about as soon as realtor gets a sign up.

Crazy thing is the more rocky , hilly, brushy and thorny it is the more it's worth.

 

[Jabes0623]

Our property is in an L shape, I'd pay a 10% premium on the acreage that would fill the L in & make it a rectangle. Other than that I wouldn't pay one penny above fair market value.

The land right across the street, I don't even know how much there is, belongs to a woman in her mid 90's so I imagine it will be up for sale here in the near future. I usually hope for people to do well but knowing her kids I imagine they'll be asking an arm & a leg for it so hopefully it sits for a long while & maybe I can score a deal.