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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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.
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Originally posted by TX_Hoghunter View PostWhat he did has nothing to do with what the place is worth now. It is what the local land market will bear.
-john
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.
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Originally posted by bullets13 View PostFence 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.
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Originally posted by tdwinklr View Postmaybe 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.
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Originally posted by bullets13 View PostIt 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.
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Originally posted by bullets13 View PostFence 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.
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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.
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