I am looking into purchasing my neighbors 200 acres and I know what he paid for the ranch less than 2 years ago. He is asking a significantly higher price and all he has done in cleared up about 50 acres and added new fence. Anyone on here know how I would place a value on new fencing and land clearing?
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get some local quotes on both, but needs to be similar to type of fence he has now and if he did the land clearing himself or not. Some of this fencing contracting now days is pretty steep. -
the same added value someone replacing their privacy fence in their back yard before selling the property would get - NOT MUCHComment
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Cost is gonna be around 1.50-1.60 a ft. He most likely wrote some of that cost off . A good new fence has value and a higher premium imoComment
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5 Strand Barbed Wire with H braces every 500' in West Texas with moderate brush (mesquite and cedar) and partly rocky -- $13500 a mile plus or minus. I try to keep the footage at 2.25-2.75 a foot. Grubbing is usually around $1200-1500 a day and depending on how thick it is, 50 acres could take up to 7 days done properly.Comment
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What he paid has little bearing on value... Fencing here is about 2-2.5/ft, and about $350/ac of 100% canopy coverage.Comment
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What he did has nothing to do with what the place is worth now. It is what the local land market will bear.
-johnComment
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Fence price isn’t really relevant. What’s relevant is what he wants to sell the property for. You might be able to work him down some, but taking the approach of “I know what you paid two years ago” isn’t going to get you far.Comment
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^^^This. What is your plan? Tell him you know he paid $600,000 for the place and then put $20,000 in fencing. So you think he should get $650,000 for his trouble of putting up the fence and land clearing?Originally posted by TX_Hoghunter View Post
The fence cost won't have any bearing on what the value of the property is today. Especially since he has already listed the property for sale.Comment
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maybe not but at least he would have some good 'ammo' with fence and clearing prices to use when he goes and makes an offer. And also checking the value on the appraisal office site gives him somewhere to start.Originally posted by bullets13 View PostComment
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It could. Then again, the owner of the land has some ammo in that the land is more valuable to his neighbor who wants to buy it than it would be to someone else who could shop around and buy somewhere else.Originally posted by tdwinklr View PostComment
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First rule in RealEstate, Location Location Location.Originally posted by bullets13 View PostComment
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I realize that comps. are the best measuring stick, except that not all sales are reported/some sales before brought to market. etc. I am merely trying to get an understanding of "improvements" in case it becomes part of a discussion. He is asking 80% more than what he paid 1.5 years ago. Basically I'm trying to glean as much information I can before starting a serious conversation with the owner. Ranch is not yet listed but coming soon.Comment
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Probably $2.50 ft range on barbed. +/-.
A lot of variables go into the clearing part.
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