HELP!! opinions on land price made an offer

themamahen · #1 04/15/08, 05:21 PM

Flew to KY~ Spent 6 days looking at land. Fell in LOVE with a Beautiful piece of property.

Made an offer

Was Turned down, NOT even a counter offer~

Now i need some opinions and advice

The property I am looking at is 23 acres about 50/50 in woods and pasture.
has 2 creeks
nice size pond
Rolling hills and some flat spots
a hidden meadow
Wild plums, cherries, hickory, acorn, blackberries

the land is surveyed

There is NO:

fencing
structures
utilities

SIGHSSSSSSSS

I offered 1500 an acre, He has it listed at 2300 an acre. he FLAT REFUSED my offer,

I heard from the realtor that the land resale in that area is not the best because it is 13 miles from town, perfect for me, but not a lot want out in there. But the neighborhood is nice.

I realllllllyyyyyyyyyy love this property.

Asking price 52,000

What should i offer that would be fair????

or should i just say NO >> crys then

thanks all in advance

kim

ericjeeper · #2 04/15/08, 05:30 PM

How bad do you want this piece of property? Around here 2300 won't buy you anything. start at 8k an acre.

ROSEMAMA · #3 04/15/08, 05:30 PM

I can't give a lot of advice without knowing more (what part of KY, mineral status, etc)
but land around here is greatly varied in price, with the average unimproved mostly wooded acreage going for about $3500/ac. If there's valuable minerals under the surface (oil, Nat. gas, coal) and the rights go with the surface rights, price goes up.
Also with big city types buying up land to escape Cap. gains taxes, prices are rising sharper.

What you have to ask yourself is this, "How much can I afford?" "How badly do I want to work my bottom off to get it?"

It sounds like a lovely piece of land, good luck!

nathan104 · #4 04/15/08, 05:41 PM

Well, you cant be suprised at the refusal of your offer. A 35% decrease in price is quite substantial. If its listed at 52K and I wanted it and it didnt look like any other offers were on the table at the time, I would probably start off at a minimum of $45K. And that is just based off his sales price and in no way takes into account what the land is actually worth. Also, if its newly listed or has not been on the market very long, dont expect a large drop in price. If you make another offer, I would come with a a first offer of 45K and see what he counters. My advice does not take into account the lands actual worth, or if you can even afford the higher price.

#5 04/15/08, 05:52 PM

Quote:

Originally Posted by nathan104

Well, you cant be suprised at the refusal of your offer. A 35% decrease in price is quite substantial. If its listed at 52K and I wanted it and it didnt look like any other offers were on the table at the time, I would probably start off at a minimum of $45K. And that is just based off his sales price and in no way takes into account what the land is actually worth. Also, if its newly listed or has not been on the market very long, dont expect a large drop in price. If you make another offer, I would come with a a first offer of 45K and see what he counters. My advice does not take into account the lands actual worth, or if you can even afford the higher price.

I would have to agree. Having our place for sale, I find it quite insulting when someone offers me so much less than our asking price. I think sellers base their prices on many factors, but they must think that they are someplace in the ball park of what they can get. I imagine that most are prepared to come down a bit--but a bit, not 35%. You may not have gotten a counter because he just doesn't think you're serious.

themamahen · #6 04/15/08, 05:56 PM

Thanks eveyone

currently land in that county is going for 1700 to 2000 an acre country land in town it's higher. BUT the seller is a multi millionaire who does owner financing so he doesnt care if i pay it off in full or pymts.

He bought a 320 acre farm and is dividing it.

Someone else offered to buy the whole thing for 400K (roughly 1250) an acre. and that made him mad as well.

LOL at least mine was higher.

I think maybe tommorow i will call and make a 45k offer. i just didnt want to spend all my $ on just the land as the utilities cost will be somewhere around 10K

BUT I LOVE THIS PROPERTY!!!!

ErinP · #7 04/15/08, 05:59 PM

Sounds nice. It'd go for an easy $800 in my area.

Land prices are so relative...

SteveD(TX) · #8 04/15/08, 06:05 PM

Unless someone is very familiar with land prices in this area, they aren't really qualified to give you an answer.

Sometimes sellers get a little indignant or insulted when someone makes an offer substantially below the asking price. Quite often there is no counter. Find comparable sales and listings in the area. Do your homework on what the property is worth and make a reasonable new offer if you are really interested.

themamahen · #9 04/15/08, 06:57 PM

The reason MY offer was so low was...... the realtor told me it was listed for 1750 an acre and AFTER I had made my offer he looked up the original paperwork and told me asking price. I figured he might not accept it after that.

edcopp · #10 04/15/08, 07:19 PM

Quote:

Originally Posted by themamahen

Flew to KY~ Spent 6 days looking at land. Fell in LOVE with a Beautiful piece of property.

Made an offer

Was Turned down, NOT even a counter offer~

Now i need some opinions and advice

The property I am looking at is 23 acres about 50/50 in woods and pasture.
has 2 creeks
nice size pond
Rolling hills and some flat spots
a hidden meadow
Wild plums, cherries, hickory, acorn, blackberries

the land is surveyed

There is NO:

fencing
structures
utilities

SIGHSSSSSSSS

I offered 1500 an acre, He has it listed at 2300 an acre. he FLAT REFUSED my offer,

I heard from the realtor that the land resale in that area is not the best because it is 13 miles from town, perfect for me, but not a lot want out in there. But the neighborhood is nice.

I realllllllyyyyyyyyyy love this property.

Asking price 52,000

What should i offer that would be fair????

or should i just say NO >> crys then

thanks all in advance

kim

I see two mistakes in the first sentance.

Any time you fall in LOVE with a thing (not a human) you lose.

#2 the Word Beautiful should only be used to describe a person. When you think some dirt is Beautiful, you lose again. I would say move on

luvrulz · #11 04/15/08, 07:25 PM

What county in Ky are you looking at? We're in Metcalfe county and acreage here is going for about $4k an acre......

YuccaFlatsRanch · #12 04/15/08, 07:56 PM

I think you need to get realistic. Electricity, a well and septic are going to cost you far more than $10K - fencing alone will eat up $10K, and you will need a road to wherever you are building, and do you have a tractor to do a good bit of the work - another $6-10K. $52,000 is way more than reasonable. Starting out on land I'd want to have not much less than $125K to get it ready to build.

Getting a homestead ready to raise stock, etc is a costly proposition - and then just think you can lose animals to predators and spend nights up birthing just like the rest of us.

I have 7 acres for $37,500.00, built all my buildings and my strawbale house myself - not done yet and I have at least $225,000 into the place.

Sorry to be a realist.

suitcase_sally · #13 04/15/08, 07:59 PM

I agree with edcopp. Anytime you fall in love with a property you are setting yourself up for a fall.

I would get a different realtor. Was your person a "Realtor" or "real estate agent"? Big difference.

Mare Owner · #14 04/15/08, 09:10 PM

Quote:

Originally Posted by themamahen

Thanks eveyone

I think maybe tommorow i will call and make a 45k offer. i just didnt want to spend all my $ on just the land as the utilities cost will be somewhere around 10K

BUT I LOVE THIS PROPERTY!!!!

Stick with what you decided before hand you can afford. It is SO HARD when you fall in love with one particular piece of land. BUT there are so MANY places for sale, you will be able to find one within your price range.

themamahen · #15 04/15/08, 10:08 PM

Quote:

Originally Posted by YuccaFlatsRanch

I think you need to get realistic. Electricity, a well and septic are going to cost you far more than $10K - fencing alone will eat up $10K, and you will need a road to wherever you are building, and do you have a tractor to do a good bit of the work - another $6-10K. $52,000 is way more than reasonable. Starting out on land I'd want to have not much less than $125K to get it ready to build.

Getting a homestead ready to raise stock, etc is a costly proposition - and then just think you can lose animals to predators and spend nights up birthing just like the rest of us.

I have 7 acres for $37,500.00, built all my buildings and my strawbale house myself - not done yet and I have at least $225,000 into the place.

Sorry to be a realist.

OK lets be "Realistic"

WOW things sure are high there in TX~ the utility company will run the first 1000 ft free I pay the rest to my house that's Why elec. is cheaper on my estimate.
Moving on to septic 3500 the ESTIMATE.
since i will be buying my DH a back hoe for digging the foundation and septic grading the roads exc. will all be substancially less. (He has done this for 6 years)

Now onto fencing. I'm not trying to impress the neighbors, More just trying to keep the property bounderies. So T post and barb wire will undershoot YOUR estimate by 1/2.

AND I am not PAYING someone else to do MOST of this work So to me... YOUR estimates are extremely HIGH.

So far as the animals go... I already have them, so don't have to "Join the club there"

Tractor cost I WILL AGREE on

That's alot of $ you have invested in 7 acres. Good luck.

texican · #16 04/15/08, 10:26 PM

I'd'a turned you down too, if I wanted 2300 and was offered 1500.

One sister sold some of her land, scrub pine plantation for 2500... last year. Other sister decided to sell hers. She originally wanted 3000, several folks offered her 2500, a neighbor found out and gave her 5k. My land, that I bought for 500, ten years ago is now worth 5K...

2300 is a steal. If I wanted it, I'd go back with at least 2k. Who knows, he may be strict on his 2300... thing is, you might pass this land up, and never find another place as nice or as cheap, ever again...

Dickering is an art. You went in with your price. You should always know "your" price going in, but thats not the first offer. He/she may have thought that was your entry dicker... when you didn't raise, you may have insulted him, and the negotiation was over.

I have relatives that are masters at dickering... but, a rookie trying to dicker them down, will meet a 'stone wall'... if the person is wise, they bump their offer up at least halfway between what they offered and what the owner wanted... otherwise negotiation over.

retire2$ · #17 04/15/08, 11:06 PM

In addition to the other suggestions already given I would also go to the county seat and see how much he paid for the land and when. If the guy is a multimillionaire he may not sell unless he gets his asking price.

bloogrssgrl · #18 04/16/08, 12:36 AM

You might want to try having an appraisal done on the land. It will cost you but it will be an objective opinion that is justified with examples of what other comparable properties have sold for.

However, if this guy is not in a position where he HAS to sell it, you're probably out of luck. If he is,in fact a multi-millionaire, he can hold onto it for as long as he wants to.

If this is THE property for you, I would ask myself "How much am I willing to lose it for?" When DH and I bought our property, everyone thought we were crazy. But we loved the place and were willing to pay more than it was probably worth at the time. I haven't regretted it one bit.

fin29 · #19 04/16/08, 06:29 AM

I'll give one more "hear hear" to not falling in love with anything. If you let emotions get involved with real estate transactions, you're looking for trouble. Also, if you lowball--I mean REALLY lowball as you did--you set up a dynamic with the seller that YOU'RE unreasonable, which is likely to make the seller unreasonable for the duration of the negotiation.

Think of it like eBay; if you think this is the place for you, you need to crunch the numbers and see if it'll work financially. Then, bid the highest amount you can afford to pay, remembering all of the cash requirements above and beyond the down payment you'll have to come up with. If you can't work it out, move on. For every piece you find there are three others you don't know about yet.

Rocky Fields · #20 04/16/08, 06:47 AM

Hey.

You have to go to the real estate listings and check current comps in the area. Also, a good real estate agent can go into past listings to see if there is anything similiar to compare to.

Offers are free to make. Put another one in for $1900 an acre, half the distance between what he wants and your last offer. If he refuses, go up a $100 again with a little more delay, so he gets the idea you're getting topped out.

RF