What's a fair price on this 23 acres plot?

Maxpowers · #1 06/30/12, 08:24 AM

There's a 23 acre plot attached to my property that's available to me. The owner said he wasn't sure what to ask but looking around he was thinking 7k per acre. He is willing to do an owner finance.

15 acres are cleared and used every summer for crops. The rest has trees, I wouldn't call it wooded though. So a mix of trees and unused open areas.

I tried looking around for something comparable but it's in a unique situation in that it's sandwiched between mine and two other peoples properties, so no utilities or road access. I figure he's only got 3 potential buyers and the other 2 have lived here their entire lives.

It's in SE Michigan, about 30 minutes from Ann Arbor.

LonghornGardens · #2 06/30/12, 09:55 AM

I'd jump on that.

Tinker · #3 06/30/12, 10:31 AM

$7,000 per acre, with no buildings, utilities or road access is EXTREMELY high in my area--it would go for more like 1-2 thousand per. The no road access is his biggest drawback--as you said, who other than an attached property would be interested?

You could go on realtor.com, and see what bare land is going for in your area, to compare, but with the no access, it should be less that other listings.

BUT, if it was attached to mine, and I really wanted it, (and could afford it), I would pay whatever he was asking. You never know if one of the neighbors might give access, and who knows what someone would build or do with the place.

Nimrod · #4 06/30/12, 01:19 PM

Check Michagan law and see if you have a similar law to the one in MN that says there is no such thing as a landlocked piece of property. If there is no access, the adjacent land owner MUST provide a right of way. You might have to provide an access to whoever buys it so you would have them driving accross your land.

If you are really serious about buying the land you should pay for an appraisel. This should give you comparisons to other similar parcels that have sold recently. It will take into account the landlocked aspect as well.

I don't know what land prices are in your neighborhood but $7000 an acre sounds way high, especially in this market. I am buying 34 acres in a similar situation, with an access issue, about a third wooded, and the rest replanted into a tree plantation. I am paying $885 an acre and it's right in the middel of The Brainerd lake vacation area. There are lakes all around.

Maxpowers · #5 06/30/12, 02:07 PM

It's not exactly landlocked. Here's the best way I can think of to describe it. His property makes an upside L shape, he's selling the small piece. My property parallels the bigger section with the part available wrapping around my property to the back.

So if I buy the 23 acres it just makes my lot bigger but still a perfect rectangle. It also makes his lot more rectangular. The plot in question also borders two other peoples properties. But this is what causes the plot to not have any road access.

I tried zillow and didn't come up with much. An appraisal may be a good idea.

copperkid3 · #6 06/30/12, 09:40 PM

Quote:

Originally Posted by Nimrod

Check Michagan law and see if you have a similar law to the one in MN that says there is no such thing as a landlocked piece of property. If there is no access, the adjacent land owner MUST provide a right of way. You might have to provide an access to whoever buys it so you would have them driving accross your land.

If you are really serious about buying the land you should pay for an appraisel. This should give you comparisons to other similar parcels that have sold recently. It will take into account the landlocked aspect as well.

I don't know what land prices are in your neighborhood but $7000 an acre sounds way high, especially in this market. I am buying 34 acres in a similar situation, with an access issue, about a third wooded, and the rest replanted into a tree plantation. I am paying $885 an acre and it's right in the middel of The Brainerd lake vacation area. There are lakes all around.

of surplus property that the state of Michigan has tried to unload over the years, I've found a number of them that were/are 'landlocked' and there was no legal way to gain access to them without working out a deal with an adjacent property owner; a difficult proposition to attempt BEFORE the sale and even more so, after. The only ones who might purchase such property, would be those whose land it adjoins....which normally limits its' value unless there are more than one who are bidding on it....which might make it worth more....depends on who wants it. Unless this property is within the greater Ann Arbor growth region and has nearby readily & available utilities, sewer or land that meets perk testing.....it's doubtful that it would be worth what he is suggesting; especially in the present depressed economy. Offer him half and see what he says.....but only if you want it that bad.

I'm assuming that the land in question, is west of AA, as most of the cheaper (and available) land is between Chelsea/Dexter & Grass Lake areas for those who are moving out of the "city".

Maxpowers · #7 06/30/12, 10:17 PM

I'm in the Manchester/Clinton area. Certainly cheaper than Ann Arbor or Saline, probably also a bit cheaper then Chelsea/Dexter. Nice detective work.

As far as wanting it, we definitely want it but like everything it's a matter of financing.

Tinker · #8 07/01/12, 07:08 AM

Looks like property is going for that high in that area:

Clinton Land for Sale - Clinton, MI Land Real Estate - Realtor.com®

Amazing!

Maxpowers · #9 07/01/12, 10:27 AM

I think a lot of those are closer to Ann Arbor and being sold as development plots. I saw 25 acres in Tecumseh on there with road access, two nice horse barns and electricity for the same asking price of the 23 bare acres behind me.

I found this pdf for MSTU showing 3-4k for agricultural land and 7-9k for residential in this area. http://www.google.com/url?sa=t&rct=j...TY_jde2HB8DzLQ

BlackWillowFarm · #10 07/01/12, 11:51 AM

Chances are being close to Ann Arbor is keeping the price on the higher side.

For comparison I have 26 acres going up for sale 25 minutes south of Grand Rapids that will be priced around 4K per acre. It's mostly mature woods with some old pasture that has gone to scrub and small trees.

Maxpowers · #11 07/05/12, 11:01 AM

I walked the property with him and we came to an agreement in the high 4's. I still think that's a bit higher than "fair market value" or what an appraiser would give it but there's also the what's it worth to you factor. With this property the back of my property will be a half mile from the road.

Measuring it out on google earth, it's 14 acres of crops, 3 acres of wetlands and just mixed scrub and trees on the rest.

Tinker · #12 07/05/12, 02:41 PM

I bet you won't be sorry you bought it. Congrats!