How much sould I pay for land?

[beginnerfarmer]

I am wondering is 30,000 bucks a good price for 11 acres? I am wondering could u get land thats bad, and that dont have good water?

[navygirl]

I'm no expert on real estate but before purchasing, I'd see what land is going for in the area you are looking at. Is everyone else paying that much per acre?

Since you are asking about water and soil quality, I am guessing you haven't viewed the land in question? You should. Either go look at it yourself or have someone you trust check it out for you. Don't buy it sight unseen.

Best of luck...

[Bresias]

That's about 1500 per acre, and the way prices are these days, it's not too bad.

But it could be a crappy piece of land.

The first thing is always water. If you are going through a real estate agent, make sure this person does all the research for you. I know, I know, they are not to be trusted. But you'll know if this person is giving you a line if he can't or won't answer your questions. Then run, find another piece.

Make sure you get FULL DISCLOSURE on the title, see if there are covenants, find out about the neighbor's wells and septic systems, make sure it isn't a darn wetland preserve, you know, all that.

I expect that for this price it isn't "scab land", or it wasn't mined for lead or mercury or any time recently (they sell that stuff for just under a thousand per acre!).

Also, navygirl is absolutely right. Find out from the real estate person what the surrounding land has sold for recently, or at least similar land nearby. Even if it is reasonably priced, don't stop there. Look at it, walk it, check the dirt, and drive all over and around it.

[Gary in ohio]

Very much location depenant. I county south of us 30K wouldnt get you an acre, in my county you get 2-3 acres some area 30K gets you a small lot in town.

[gilberte]

Originally Posted by Bresias

That's about 1500 per acre

$30,000/11=$2,727.27.

[kmaproperties]

just as gary said, I sold a 1.1 acre lot for 85000 wich is the going rate in Bath ohio. My friends bought 50 acres one hour south of us for 120000.
LOCATION LOCATION LOCATION, the realestate montra.

as far as water, go and check the county or state well logs for the area, this will give you a good range for depth and how much they are making per minute. Ask a property owner next door what his well is like.

Arnie

[Danaus29]

Location
Location
Location

And you have to check zoning, soil percolation, mineral rights, easements, slope, all kinds of stuff. I know of properties here where you can have absolutely NOTHING in your back yard because of a gas pipeline easement. We looked at 17 acres in Hocking Hills ($12,000 obo) which wasn't worth $500 because it wasn't buildable. I've got 1/2 acre that I could sell for $80,000 because of the LOCATION and the fact it is buildable. We passed on over 40 acres for less than $50,000 because it was too far from any major cities, it was miles and miles away from even a tiny town.

Not enough information to figure this one out.

[Alice In TX/MO]

It might be a good idea to spend about six months doing research about land values in your area, or the area in which you want to live. You need to find out about all the things mentioned above. Education before you make a purchase will save you a LOT of misery later.

Get a spiral notebook. Go through the newspaper and write down the info on each interesting property you find...one per page. Go look at each property and make notes on each one.

Find a realtor who is willing to educate you without making a quick sale.

[BCR]

If you are uncertain at all, dso not buy yet. Wait. Decide where you are going, live there for a year and get to know the area. Then start researching as Rose said.

It could be $30K is cheap or expensive....depends on what you are going to do with it and how well suited it is for that purpose.

[agmantoo]

Purchasing land for farm production is no different that any other capital investment. You need to ascertain the return on investment. With $30,000, a 10% net return from a low risk investment is acceptable. Properly done, your farming enterprise is still going to be difficult to render this percentage year after year. If however, you will factor in the appreciation for the land at say 3% it becomes achieveable. The appreciation will be recognized as a windfall in the future should you decide to sell or it will be equity in your estate should you hold. Now we are a 7% net return which is more readily accomplished. With the initial invest of $30,000 we now need to net $2100 per year. Therefore, you now need to attempt to verify that the 11 acres in question can yield the $2100. Example. Eleven acres in a good pasture growing area can support a cow/calf per 1 1/2 acres per year around with rotational grazing. Provided the calf per year will net $300 (again achieveable) then the needs are met and the purchase is justifiable provided you want to be in the cow/calf business at this level. In good years such as we are currently experiencing the calves would bring $3500+. Obviously land that cannot support a cow per 10 acres will not have the cash flow to net the needed return. Asking around the farming community you can determine the carrying capacity of the land in the area. The above is given as an example only to better assist in making a judgement in the land purchase. I can add that I have never made a land purchase that did not make money above the purchase price if I held the property. Most made a tidy profit. Obviously,to render an income that will support a person you will need more land and in the example an operation of this size is only a part time enterprise. Hope this helps your decision making.

[SteveD(TX)]

Depends.

I am a real estate appraiser, and I've seen land sell from $300 an acre up to about $5 million per acre. So you're within that range.

[Mutti]

You also need to seriously consider the future use of the land around/near you. Alot of places selling cheap around here but future plans call for the xway to go thru and also a Supercenter. Pretty sure the state isn't gonna give you a profit for your land! A supercenter will brings loads of traffic,congested roads and alot of smaller businesses. Had one built in our country seat and a sleepy little town is gone. We never go there anymore. My Sis bought a place 30 miles from St. Louis--city wanted to build a dump out by her subdivision...huge trucks would be traveling a narrow two-lane in long caravans daily--all the citizens banded together and hired a fancy environmental lawyer and got it stopped but it was quite a process. Just around the corner a neighbor put up a sawmill..talk about noisy; lucky for us he was loosing his shirt so shut it down. Zoning restrictions are something to think about as we basically have none out here in the boonies and anybody can do whatever they like...at least until they are caught! DEE

[ET1 SS]

I paid $900/acre. [I got riverfrontage and forest]















My in-laws paid $300/acre [they got forest]

[mountainman_bc]

Land around here goes for 40K Canadian per acre if you're buying a small farm. A city lot is over $200. A real farm is min a million. Not conducive to farming anymore.
ET1, that's a gorgeous piece of land. Does it flood??

[ET1 SS]

Originally Posted by mountainman_bc

Land around here goes for 40K Canadian per acre if you're buying a small farm. A city lot is over $200. A real farm is min a million. Not conducive to farming anymore.
ET1, that's a gorgeous piece of land. Does it flood??

I have 42 acres, yes the 5 acres or so nearest the river does flood come winter. LURC regs dont allow you to build within 250 feet from the river anyway, so I really had not planned on doing much building down there. Maybe just a little bridge crossing the stream, to allow easier access to the river.