Land values in your area?

[farmaholic]

WOW BP.....those numbers are just nuts

[the big wheel]

Make sure your accountant is actually working for you to save money and not working just to make sure the numbers are correct. There is a big difference.

[AC man]

Thanks for all the threads. I know there are so many variables that determine land values. I never heard about the comparable land values site,so will check it. I do have neighbors interested and will tender it out. I am fortunate that most of our land is in a block or within a mile. I know of 3 interested in moving onto the home quarter.

[farmaholic]

Then there's the emotional attachment to it. Or wanting that piece that an Uncle or Grandparent owned. ACman.... no kids interested in farming, or no kids interested in owning/inheriting it, or no kids.
Land is quite the asset, if non farming kids/beneficiaries can see past the value of it and think of it as a source of income..... but some might not need the income and might want that expensive cottage at the lake.

In some cases the owning generation, like fjlip said, lives poor and dies rich! then the beneficiaries get the payday. I guess we won't know when we're dead!

[the big wheel]

For what it's worth I did something new to me this past year. I m in a rent to own deal where I pay above normal rent but below owning the land price. That way the owner gets more cash and is in a better position tax wise down the road. I ll see how it works out in the end. But there are different ways of doing land transfers. I have a condition. Where if the owner want s to completely sell then we deduct the additional amounts I paid in excess from the price asked later. If that makes sense.

[farmaholic]

For what it's worth I did something new to me this past year. I m in a rent to own deal where I pay above normal rent but below owning the land price. That way the owner gets more cash and is in a better position tax wise down the road. I ll see how it works out in the end. But there are different ways of doing land transfers. I have a condition. Where if the owner want s to completely sell then we deduct the additional amounts I paid in excess from the price asked later. If that makes sense.

I'm assuming you have first right of refusal when it sells? What's your protection from being "bid up" past a reasonable price? Is it more of a Purchase Agreement than a Rental Agreement?

[sumdumguy]

I thought Big Wheels just get the secretary to cut the cheque, no problem.

[the big wheel]

This situation benefits both parties. Yes I could cut the cheque but why not have my money available to do other things at the same time benefit tax wise the owner? Honestly only time will tell if this is correct way to go.

Yes I have first refusal to purchase I have an interest declared on the title as I have money invested in the land. Should I not want to purchase I get money back when land sold. Market price determined by independent appraisal however we have an agreed maximum and agreed minimum price.

[AC man]

Farma, I have no kids due to being married later in life. I do have nieces and nephews,also step kids which are all in cities. I have nobody interested in taking over. If I don’t sell it will be rented out. We have all the kids in our wills for inheriting the land. I was hoping there would be a family member to take over and keep it in the family.

[AC man]

I have cousins with land at 5000/ac and wonder if any actually sells? How do you make that pencil out? My pencil can’t get sharp enough for those values.