Debating Land Purchase

[151Viper]

OK I am looking for some outside opinions on a land deal I am considering. I am looking at a 16 acre plot of land in eastern central ND. Currently it is used as a pasture and the farmer who owns it has been letting a relative keep some animals in it once in a while since he has no livestock. It has about 10 acres if high ground and 6 acres of river bottom area since there is a small river running through the property. What do you think about $2,000 per acre. I would also have to pay all expenses for the lawyer to set up the deal. Do you think this is an OK deal? I am looking to build a house on it in the next couple years.

 

[newmy1]

Probably a better question for a realtor, someone that can run some comps in the area and tell you for sure if a good or bad deal.

 

[Himark]

That would be a steal around here. I paid 4200 and acre for a 40 I bought a while back but that is not relative to your situation. You must really talk to local realtor and remember they will help you write a contract for a fee and know a heck of alot more about real estate than a lawyer. We write ready made deals for 750.00 bux and see it through the closing. Most places will do that, and personally the value of the market opinion is worth that let alone writing the deal.

 

[151Viper]

I know there are large variations in value in my area since I paid 20K for a 3acre lot that we built our current house on and I know that the 80 acres south of me sold for 25K. I missed out there but it was an inside deal. I was just curious what other people might have been paying for a "similar" deal. I will have to check with my local realtor that I use to see if he would be interested in writing up the deal. Thanks for the input.

 

[EricW]

You can usually go online to that County's Assessor's website and see the tax info with a parcel number or the land owners name. See what the tax evaluation is and generally it is worth atleast 1/3 more than that. So if your thinking $32,000 it's tax evaluation should be in the $20,000 range as a starting point.

Might also look at that county's current "Growth Management" legislation and specifically the "Comprehensive Plan" to see if there is going to be limitations on what can go on around the shorelines of the property or if it falls under any rural or urban designation in general. Many counties are incorporating up to and over 100' setbacks as part of their "Shoreline Management Plans" which means you could buy a bunch of frontage you can do nothing with. You should also check with the local "Water Conservancy Board" to see if you can get a water right to the water or check to see if any already exist. These can be transferrable and are getting more valuable.

Lastly, be careful using the local "Good 'Ol Boy" realator until you have an earnest money agreement contingent on your final inspection/approval. That way you have the property tied up and have a way out as well. Twice in my life I have lost good deals for asking honest questions around dishonest people. May they RIP.

Talk to the newest/youngest county planner and be vague. Good luck. EW

 

[Blu Du]

a good closing company can handle the whole transaction. probaly a fair deal. make him an offer. property isn't moving here at all. good luck getting a loan on property

 

[stum1967]

I bought 5.5 acres 25 miles east of Minot 2 years ago. I ended up paying $550 an acre plus all legal fees and all surveying costs and had to pay for all fencing changes and had to pay to install a new access approach for the remaining adjacent property because the corner I wanted had the only approach. If I added it all up, the land was only about half of the actual cost of buying the land. This was pancake flat pasture land with a grove of trees on it. With lots in minot going for $30,000 to $50,000 for a residential area, mine felt like a bargain.

 

[Highmarker]

Wish it was that cheap here.....eveyone is paying 20,000 to 30,000 an acre here!!!

 

[stum1967]

Have you been to North Dakota? Once you see it, you will understand why it is cheaper here.

 

[151Viper]

I bought 5.5 acres 25 miles east of Minot 2 years ago. I ended up paying $550 an acre plus all legal fees and all surveying costs and had to pay for all fencing changes and had to pay to install a new access approach for the remaining adjacent property because the corner I wanted had the only approach. If I added it all up, the land was only about half of the actual cost of buying the land. This was pancake flat pasture land with a grove of trees on it. With lots in minot going for $30,000 to $50,000 for a residential area, mine felt like a bargain.

If you don't mind sharing what did you pay for legal fees and surveying? You can pm me if you don't want to put it out for everyone. If anyone else has some input on this question I would appreciate your knowledge. I am hoping to sell my house and use the equity to pay for the land so hopefully the banks can eat ****.

 

[Transporter]

Seems ok to me. going around here for 1300 acre and that doesnt have a river.

 

[IShartd]

OK I am looking for some outside opinions on a land deal I am considering. I am looking at a 16 acre plot of land in eastern central ND. Currently it is used as a pasture and the farmer who owns it has been letting a relative keep some animals in it once in a while since he has no livestock. It has about 10 acres if high ground and 6 acres of river bottom area since there is a small river running through the property. What do you think about $2,000 per acre. I would also have to pay all expenses for the lawyer to set up the deal. Do you think this is an OK deal? I am looking to build a house on it in the next couple years.

Value will be dictated by the "Highest and Best Use" of the property. If you are planning on improving the site, can you legally do this under the current zoning? Does it currently fall under Agricultural status for the sake of property tax and assessed value? willl it in the future after improved? 6 acres of river bottom. Is the property within a FEMA flood plain, effecting insurance premiums in the future? Are their utilities in close proximity to the property? Any Easements?

I think you have a lot of research you may have to do, which in the end will help you when it comes time to make a offer. Pm me if you need any help.