Selling price of land WOW!
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Topic: Selling price of land WOW!
Posted By: Marlyn nwia
Subject: Selling price of land WOW!
Date Posted: 09 Nov 2010 at 8:08pm
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Back from a land auction that was conducted yesterday. Bare farm land-no buildings-80 acres of productive farm ground. No housing or commercial development possibilities $13,950 per acre. $1,116,000 for an eighty acre farm. Marlyn nwia
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Replies:
Posted By: RSponenberg
Date Posted: 09 Nov 2010 at 8:15pm
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WOW!!! I do like the no housing or development thou,farms need to remain farms..
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Posted By: Brad(WI)
Date Posted: 09 Nov 2010 at 8:22pm
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When I bought my land, I calculated the roughly $3000/acre cost at 30 yr mortgage out. I needed $250/acre profit to break even (same as paying $250/acre rent). Good Iowa land will yield better than mine, but it still has to be somewhat equivalent to $1000/acre rent. Must be adjacent to his/her farm or really needed it!
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Posted By: Eldon (WA)
Date Posted: 09 Nov 2010 at 9:45pm
My brother bought South Dakota dry land a few years back for $300 an acre....corn and beans made over $300 an acre last year and this years crops were nothing to sneeze at....I think people are buying land in the wrong state! I cannot see how land at that price can pencil out...even in a good year....
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ALLIS EXPRESS!
This year:
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Posted By: Larry in OK
Date Posted: 09 Nov 2010 at 10:10pm
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My aunt and uncles farm sold a moth ago here in NE Oklahoma. 117 acres, 6 ponds, cross fenced, good pasture and hay meadows, house, barn, shop, several sheds. Good well and rural water available at the property line. Admittadly house and other buildings were a little run down but mostly cosmetic on the structures and perfectly livable/usable.
$180,000.
:(
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Some people are like Slinkies. Not really good for much of anything but they still bring a smile to your face when you push them down a flight of stairs.
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Posted By: Matt MN
Date Posted: 09 Nov 2010 at 10:26pm
I think we are missing some facts.. I don't believe that is posible to pay that much and have it work out?
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Unless your are the lead horse the scenery never changes!!
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Posted By: Tracy Martin TN
Date Posted: 09 Nov 2010 at 10:29pm
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Some people don't have to pencil it out. They have that much cash. One thing for sure,they ain't making more land, and you can't take the cash with you in the end. Tracy Martin
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Posted By: Marlyn nwia
Date Posted: 09 Nov 2010 at 10:39pm
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Matt; You are not very far from the high price land. It was sold in Sioux County. It is located between a large hog feeding operation and a large cattle feed lot. Both were interested in raising corn for feed but also needed it to depose manure. No other strings attached. Marlyn
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Posted By: Dale-OH
Date Posted: 09 Nov 2010 at 10:41pm
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188 Acres in Washington CH Ohio brought $6444 per acre, all farm ground no buildings to speak of.
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Posted By: Nathan (SD)
Date Posted: 10 Nov 2010 at 1:20am
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Sioux Co. Ia gotta have one of the highest livestock per square mile densities in the country. If you got alot of confined livestock yoy need the spreader acres. That is more than crop value.
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Posted By: randy
Date Posted: 10 Nov 2010 at 6:51am
8100 per acre in east central illinois. 113 acres, old timers here say they neve bought a farm worth the money for the last 100 years! Appreciation is what they hoped for all those years back.
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CA WD WD45 D17 D17 Diesel 7060 8050 8070
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Posted By: DonDittmar
Date Posted: 10 Nov 2010 at 7:54am
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People want that high prices for land here in Michigan too, the reason I havent bought any. No piece of dirt is worth 5000 acre where I am at, dont care whats on it
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Experience is a fancy name for past mistakes. "Great moments are born from great opportunity"
1968 D15D,1962 D19D
Also 1965 Cub Loboy and 1958 JD 720 Diesel Pony Start
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Posted By: Jim Lindemood
Date Posted: 10 Nov 2010 at 8:06am
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That might be a little on the high side in my area -- and my budget. There are folks that are trying to get that for land they think could be developed -- sure would hate to see these places go, but money talks. Older folks move on and younger families don't want to hang on to the "old places". Hard to argue with that if they can't make a fair living off the farm.
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Posted By: jaybmiller
Date Posted: 10 Nov 2010 at 8:08am
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please Don't kid yourself about 'no housing or commercial possibilities'..... Given enough time and $$$ ANY developer WILL get his way! When we in Flamborough got 'amalgamated' with Hamilton, magically overnight ALL farmland was rezoned into rural housing,making it easy to build houses.Land across the street from me is the BEST in southern Ontario for beans,well was....it now has a subdivision on it,soon another 25 houses jammed into it( developer got his way,60' front was 100',etc.)
Now the City wants to clear off 2500 acres for 'potential industrial/commercial' development.
I may not have sh!t stuck to my boots,but am disgusted that all the prime farmland in my area is and will be bulldozed away...
oh yeah..I'm 25 miles from the Niagara fruitbelt but can't buy ONE can of local canned soft fruits(peaches,pears,cherries,etc)...
end of all local farming...sigh..
sorry for the rant...
I'm getting old and crochetty
Jay
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3 D-14s,A-C forklift, B-112
Kubota BX23S lil' TOOT( The Other Orange Tractor)
Never burn your bridges, unless you can walk on water
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Posted By: DMiller
Date Posted: 10 Nov 2010 at 8:44am
Land near to us had been over $10,000/acre but mainly for development ground; housing boom is busted and the prices are beginning to falter. Last week the local realtors' came together to try to salvage some land value and opted to buy out a few parcels that had no lookers or offers since being dropped $2000/acre from $11500, they just know this will turn around and they will make a tidy profit(stupid).
I have been watching these properties for some time, investors, speculators, higher income level land holders are now trying to cash out before the dump prices cut in, thirty to forty plus percent of land in tillage here had been left fallow while awaiting the huge commercial/residential developments that used to happen so often, I am sitting back as it comes to a head. And Yes, they are not making more land, but fuel and equipment to re-clear land to farm is expensive, it is even more so to grade for development that may never accelerate to sellable; and yet , yes there has been no land "Made" since the dawn of time and the profit line to farm is still low enough to not cover $3500/acre for over thirty to forty years, the return at the other end may never come to fruition and the cost of maintaining the land to maintain it's value creeps ever higher daily.
Land that brought $4500-$5000/acre five years ago is not being actively looked at here for $3500/acre, there is little money from lenders available and unless you can cough up cold cash owner financing could be a problem to break into it as they are looking to a fast return to their own investment. Some cash is still out there but the "Old money" is waning fast for basic bills and expenses.
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Posted By: John (C-IL)
Date Posted: 10 Nov 2010 at 9:41am
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$8000 per acre at 3% is $240 per acre rent. Checked the return on CDs lately. If I've got the cash putting it in land certainly makes as much sense as having the cash earning less than 1% in the bank or the stock market where keeping your investment together in a crap shoot at best.
Sell some 200 bpa acre corn for $5 is a $1000 per acre, or 60bpa beans at $12 is $720. If you are financially capable $240 cash rent doesn't seem unreasonable.
There is money out there looking for a home, someone with a plan and some guts will do okay.
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Posted By: D17JIM
Date Posted: 10 Nov 2010 at 10:16am
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Lots of $5,000 dollar land around here the last 2 years. Most 1/3 and 2/3 arrangements have been the eqivalent of 150 to 250 $/acre cash rent. A lot of farm operations have old money and its a good investment at those prices. In the last 5 years the worst yields on this kind of land went 180bu/ac on corn and 50bu/ac on beans. Its not hard to see why the farmers with $'s are buying it.
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Posted By: ACFarmer
Date Posted: 10 Nov 2010 at 11:39am
My wife and I just bought a 140 acre farm for 4,800 an acre. Has 20 acres of woods but the rest is tillable. Also came with 2 pole barns, a 2 story house and 2 grain bins, one of which is only about 4 years old. Ground is pretty decent, not as good some but better than alot in the area. Dont think we will be able to touch that amount of ground in one spot for that kind of money ever again in our area.
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Making A living everyday farming with and working on Allis Equipment
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Posted By: Brad(WI)
Date Posted: 10 Nov 2010 at 7:21pm
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John is right on the return, looking back my numbers are a little different. My purchase was 190 acres. 158 tillable, came with house, shop, shed, and two barns. I had to take out a 30 year mortgage at 6+% interest. My yearly payment total divided by 158 acres came out to about $250, so I told myself I was paying myself $250/acre rent, or I had to make $250/acre profit to break even. I guess if I had cash to spend or deducted the value of the house and buildings my per acre cost would be lower. Anyone spending nearly $14000/acre either has a very trusting banker or a pile of cash to spend. My guess it is the latter.
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Posted By: MikesWilsons
Date Posted: 10 Nov 2010 at 11:44pm
Thanks for the sharing.
http://www.pennystockville.com/ -
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http://www.pennystockville.com/ - Penny Stocks
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Posted By: Jeff Z. NY
Date Posted: 11 Nov 2010 at 3:31am
Our farm just sold 3 acres with all road frontage on a state highway for $35,000.
But on the other hand I know a fellow with 86 acres and 1500 feet of brook frontage and roads through the whole property. Alot of woods and alot of open space in a very rural town. Post office and a gas station and that's it. 30 mins from Albany. $200,000 and can't sell it.??????
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Posted By: Jeff Z. NY
Date Posted: 11 Nov 2010 at 5:01am
In regards to the 86 acres developers don't want it for houses because there is no city sewer or water.
I bush hog it for the owner and if I ever wanted to build another house that is were it would be.
The only problem would be I would have to go back to work to pay the land taxes.
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Posted By: Jeff Z. NY
Date Posted: 11 Nov 2010 at 5:05am
PS: Bush Hog with his tractor. Massey 65 with a Perkins diesel.
Nice little tractor.
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Posted By: Brian F(IL)
Date Posted: 11 Nov 2010 at 10:56am
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There was a public auction today in Champaign county, IL, for two tracts of farmland 6 miles west of Champaign. There is zero to limited development potential. Bid price was $8,900/acre to the seller plus a 2% buyer's premium ($178/acre). That brought the total purchase price up to $9,078/acre to the buyer. FWIW.
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Posted By: Brian F(IL)
Date Posted: 11 Nov 2010 at 1:29pm
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Duh... 285.86 total acres in the above tracts. Buyer is rumored to be a non-farmer, cash investor.
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Posted By: RSponenberg
Date Posted: 11 Nov 2010 at 6:44pm
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We had our farm appraised 4 years ago and it was at $350,000.00 then for 108 acers...
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Posted By: David (in Mi.)
Date Posted: 12 Nov 2010 at 6:14pm
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Went to a land auction yesterday here in the thumb of Michigan, several parcials, all were bare ground, scattered around the county, 20 acres pieces all the way up to 198 acre pieces, and all of them sold for $4000 per acre or more. THe highest went for $4200 per acre. All where bought by local farmers from the area, i know most all of them. I bought land from my aunt's estate last fall and paid what i thought was to much at $3800 per acre, and looking back at it now, i am sure glad i did buy it. By the way i bought 240 acres of her farm.
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