Iowa 136a - What will is go for?

[Tree Spud]

This looks like a nice parcel with income ag and river bottom land mix. Total of 136 acres with 96 tillable.

The Les McCauley Farm Auction Live Auction June 10th 1:00PM - United Country Midwest Lifestyle Auctions

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Wonder what it will go for?

 

[bwoods11]

No idea, but I am guessing it will be a lot!

 

[Howboutthemdawgs]

Who knows but I can’t wait for the day we break up an acre tract into 4 .25 acre tracts to maximize profit. Subdividing tracts is the death of wildlife management.

 

[Tree Spud]

No idea, but I am guessing it will be a lot!

With your local experience, where do you think this would look like per acre price? Obviously lots of variables, just curious on your thoughts.

 

[bwoods11]

Guess … 7-9k acre. But not as familiar with that area?

 

[swat1018]

There was just a sale of 82 acres in NEMO last week. Some wooded draws, a few CRP type fields, no good tillable. $4750/ac.

 

[Bill]

10K/acre wouldn't surprise me. But honestly that's further north in IA then I know about.

There was just a sale of 82 acres in NEMO last week. Some wooded draws, a few CRP type fields, no good tillable. $4750/ac.

I keep seeing things like this and wonder why I'm holding. But I have a neighbor who sold 350 acres when his kids were young. He said at $1000/acre he had to take the $. Now he wishes he didn't.

I sold beach property last spring and bought another immediately. If I held out for a price drop I'd be priced out of the area. Realtor called last week and said what I bought is worth 25% more in a year. This can't continue. But I'm not getting priced out so I'll hold and see where the cards fall.

 

[Hoytvectrix]

There was just a sale of 82 acres in NEMO last week. Some wooded draws, a few CRP type fields, no good tillable. $4750/ac.

I haven't heard of anything that expensive yet, but I don't doubt it. I've been seeing pure pasture ground that is landlocked go for over 4000 an acre. It's insane how quickly prices moved up in the area in the last two years or so.

Everyone says this can't last. Has recreational land ever gone down in value? I'm genuinely curious.

 

[SwampCat]

I haven't heard of anything that expensive yet, but I don't doubt it. I've been seeing pure pasture ground that is landlocked go for over 4000 an acre. It's insane how quickly prices moved up in the area in the last two years or so.

Everyone says this can't last. Has recreational land ever gone down in value? I'm genuinely curious.

My dad bought 24 acres on the Mo River in the early 1980’s just north St Joe. Pretty sure he paid $1800 an acre. 1/4 mile river frontage. It was appraised about 2005 - $1800 an acre. It didnt decrease in value - but compared to any savings accounts during that period - it didnt keep up.

 

[Howboutthemdawgs]

My farm is getting listed next week…prices are certain to go down now.

 

[Tree Spud]

I haven't heard of anything that expensive yet, but I don't doubt it. I've been seeing pure pasture ground that is landlocked go for over 4000 an acre. It's insane how quickly prices moved up in the area in the last two years or so.

Everyone says this can't last. Has recreational land ever gone down in value? I'm genuinely curious.

I don't think rec land is as volatile going down in value and it is in increasing value. The problem is when rec land gets valued like it is today, you run in affordability and financing issues. As an owner, if you have $200-$400k tied up in rec land that 10 years later has seen no real or just marginal gain in value, you have lost money relative to other investment options.

Regarding affordability, that is why you are seeing so many larger parcels being broken up and sold in 40s & 20s.

 

[Howboutthemdawgs]

I don't think rec land is as volatile going down in value and it is in increasing value. The problem is when rec land gets valued like it is today, you run in affordability and financing issues. As an owner, if you have $200-$400k tied up in rec land that 10 years later has seen no real or just marginal gain in value, you have lost money relative to other investment options.

Regarding affordability, that is why you are seeing so many larger parcels being broken up and sold in 40s & 20s.

I know I’m preaching to the choir with this crowd but I have a doctor buddy of mine who will never pull the trigger on land, he can’t make it make sense for him on paper. He is heavily invested in the market and while historically that may provide a better return he is losing out on years and years of enjoyment. If I own my land for 10 years and never make a cent off of it but enjoy the hell out of it I can’t value that high enough.

 

[Bszweda]

Howaboutthemdawgs

I know I’m preaching to the choir with this crowd but I have a doctor buddy of mine who will never pull the trigger on land, he can’t make it make sense for him on paper. He is heavily invested in the market and while historically that may provide a better return he is losing out on years and years of enjoyment. If I own my land for 10 years and never make a cent off of it but enjoy the hell out of it I can’t value that high enough.

What's your end game after selling your property? Gonna buy another one? Owning land is a labor of love. You are literally paying hundreds of thousand of dollars for something you then need to manage. A lot of people don't have the time to enjoy their property if they have a typical job that only gives them 2 weeks vacation. I am debating putting mine up just so I can then invest and catch the market on the up swing.

 

[b116757]

Have some listings in my area of Kansas at $4825 some has sold for around $4000. Totally agree about owning land for the enjoyment. I have other investments and they are vital to my retirement plan but I enjoy real property immensely wouldn’t trade it for a stack of cash unless I was pulling roots and moving to a different part of the country completely but then I would be buying more wherever I moved to.

 

[Howboutthemdawgs]

Howaboutthemdawgs


What's your end game after selling your property? Gonna buy another one? Owning land is a labor of love. You are literally paying hundreds of thousand of dollars for something you then need to manage. A lot of people don't have the time to enjoy their property if they have a typical job that only gives them 2 weeks vacation. I am debating putting mine up just so I can then invest and catch the market on the up swing.

Actually already bought a bigger piece with a house on it. I was running into a dilemma where I was wanting to spend as much time at my place as possible but despite the cabin on it being nice, it wasn’t quite at that point my wife and 2 year old could go and feel comfortable. I have no doubt I paid a premium for my new place but when i started weighing the benefits of them being involved and what that meant to my time increase I could make it work.
I’m not saying you are wrong in your thought process but if you don’t make a killing in the market (which you very well may) that would be a tough pill for me to swallow. Behind my family there is not anything on earth I love more than my land!

 

[b116757]

Howaboutthemdawgs


What's your end game after selling your property? Gonna buy another one? Owning land is a labor of love. You are literally paying hundreds of thousand of dollars for something you then need to manage. A lot of people don't have the time to enjoy their property if they have a typical job that only gives them 2 weeks vacation. I am debating putting mine up just so I can then invest and catch the market on the up swing.

The farm will be handed down to one of my kiddos the other two will likely get cash or other investment property I will not break up the large tract between them. I may very well buy a second farm before going to meet my maker in which case one of the other boys will get the second farm. One of my boys has autism and will require some trust gymnastics to be financially taken care of after my wife and I are gone. One or both of the other boys will likely be named executors of his trust.

 

[williams111]

There is a 400 acre tract, 260 rough tillable 140 timber/pasture that was just listed, the mother that owned it passed away and the kids are selling it. The are asking 4.5 mil. $11,250/acre. It has been nuts around here what land prices have done. How can this continue? I'm glad I got my little chunk when I did.

 

[b116757]

There is a 400 acre tract, 260 rough tillable 140 timber/pasture that was just listed, the mother that owned it passed away and the kids are selling it. The are asking 4.5 mil. $11,250/acre. It has been nuts around here what land prices have done. How can this continue? I'm glad I got my little chunk when I did.

Those are some crazy per acre prices.

 

[b116757]

There is a 400 acre tract, 260 rough tillable 140 timber/pasture that was just listed, the mother that owned it passed away and the kids are selling it. The are asking 4.5 mil. $11,250/acre. It has been nuts around here what land prices have done. How can this continue? I'm glad I got my little chunk when I did.

Also loosing a million to capital gains taxes in a sale like that would hurt my soul just a little bit.

 

[Tree Spud]

Also loosing a million to capital gains taxes in a sale like that would hurt my soul just a little bit.

I wouldn't shed a tear with net proceeds of ~$3.5 mil