Finding acreage

Laura VV · 10-19-2008, 08:48 PM

We've been going to open houses for the last several Sundays. We've seen a lot of awful houses. Today we saw a really neat piece of land. It was about 7 acres but the house was awful and tiny. It was really, really far out and priced way too high. But there was an indoor arena, a barn with stalls, and another building.

Why is it that in this market people still want big bucks for yucky houses?

barnbum2106 · 10-19-2008, 08:51 PM

they will eventually realize that they are priced too high when they still own the property a year from now! personally, i would price lower just to get ride of the extra payment without losing too much....

Faceman · 10-20-2008, 03:07 AM

The price of housing has gone down - the price of land has gone up.

kehlyrsmom · 10-20-2008, 05:43 AM

We have been looking for acreage and a house pretty much since we have been married "17" years and if we find a house that is sutiable in is only on a acre or two or if it has sufficient acreage the house is small and need of repair. We did find one last year that would have been a good fit but we had concerns about the school district.

redboy · 10-20-2008, 06:20 AM

Land owners realize that its not the house that has value, its the land it sits on. Houses can be torn down for far less than you could spend remodeling, but they aren't making more land.
That would require developers to come in with bucks (which they need to borrow at interest rates that make the whole thing economically fesible, so they can make a profit).
And, also, lawyers to get the proper zoning changes, and compliance from members of the neighboring communities, etc., etc.
Then state and county municipalities have to have the tax base to begin to put in proper roads, sewer systems, water access, build schools big enough to hold all the new children and enough books to educate, etc.
Increasing the tax base is what this current housing boom was all about, that and some GREED

through in as well.
If you like the property, look past the house part, even envision the house you would like sitting there.
Especially in THIS housing market crisis, people paid way too much for these
'houses' and really didn't get any/much land. A lot of people got sucked into the idea that bigger was better, even though they couldn't afford it, nor needed all the community amenities it came with.
The land is what holds value, housng styles change, as do building materials, and especially technology in home building materials,ie., energy effiecient heating and cooling systems, insulation materials, siding materials,
etc., etc.
But, it really is location, location, location.
Try to look past the older house, and think about the future.
What seems far out of town today, could be QUITE different in ten years.
When we bought our farm in 2001, we were 'Way' out there, and then, 'BAM', this housing boom happened, and all you heard about was this area we live in.
But, luckily it didn't quite get here, though, the developers tried their hardest to make that happen, we were still just a little bit too far away

.
But remember that, and think if its where you want to live in 20 years if things had kept going the way they were??
JMO, but if you like the land, it could be worth the extra $$, even if the house isn't your dream home.
It could be your dream farm one day

.
Good Luck, RB

rivervu2 · 10-20-2008, 07:07 AM

In this case the value is in the land and outbuildings.

Why don't you do a cost comparison of what the land would cost unimproved vs. the cost to build the barn and arena. Add to that the cost to build a decent house and then research what a turn-key operation like that would cost in your area. I would think an indoor arena is almost a must for serious training up there.
Is the house liveable until you get the new house built? Is the fencing adequate? Do you have the resources to buy this place and build a nice house? Sounds like it would be a great opportunity if the numbers work for you!

EquineAlberta · 10-20-2008, 11:12 AM

If you have an arena and a barn, why on earth would you need a nice house?

You can make an offer on what you think is reasonible. Sometimes people price high just in case they can find a sucker. remember to consider the price of things like utilities and property taxes.

Karen

Laura VV · 10-20-2008, 05:56 PM

The house we saw is way out in the boonies. The house was horrid. It's not in a desirable area at all. We live in a nice suburban/rural area and have 2.5 acres and a nice, large house. This house was awful. There was only about 7 acres and a few outbuildings. The arena was quite nice (and way more than we need) but none of the other outbuildings were anything to write home about. The pastures were not totally fenced in as they seemed to count on a woody area and a very, very old barbed wire fence to keep the animals contained. It would cost way more to tear the thing down and rebuild than you'd ever get from the place.

There's another piece of land close to the first one for about $150,000 less. It's got a river view and twice the land but no buildings. I'd rather have fewer, nicer buildings that are in an area closer to family. It amazes me how people think their homes are worth so much. Some of these places have been for sale for a year. Home sales have slowed here, but just within the last month.

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10-19-2008, 08:48 PM
Laura VV Halter broke Join Date: Aug 2008 Location: Illinois Posts: 51	Finding acreage We've been going to open houses for the last several Sundays. We've seen a lot of awful houses. Today we saw a really neat piece of land. It was about 7 acres but the house was awful and tiny. It was really, really far out and priced way too high. But there was an indoor arena, a barn with stalls, and another building. Why is it that in this market people still want big bucks for yucky houses?

10-19-2008, 08:51 PM
barnbum2106 Weanling Member Join Date: Oct 2007 Location: Pensacola, FL Posts: 333	they will eventually realize that they are priced too high when they still own the property a year from now! personally, i would price lower just to get ride of the extra payment without losing too much.... __________________ Owned by: Bo & Hoosier RIP my Bailey bug. You will never been forgotten my love. Miss you...07/14/2009 RIP my Lucy Goose. You unexpectedly left but not without leaving hoofprints on my heart. 01/21/2010

10-20-2008, 03:07 AM
Faceman Kid Safe Join Date: Aug 2005 Location: Arkansas Ozarks Posts: 7,421	The price of housing has gone down - the price of land has gone up.

10-20-2008, 05:43 AM
kehlyrsmom Yearling Member Join Date: Nov 2007 Location: Washington, IL Posts: 804	We have been looking for acreage and a house pretty much since we have been married "17" years and if we find a house that is sutiable in is only on a acre or two or if it has sufficient acreage the house is small and need of repair. We did find one last year that would have been a good fit but we had concerns about the school district.

10-20-2008, 06:20 AM
redboy Greenbroke Member Join Date: Mar 2008 Location: Eastern Shore of Maryland Posts: 3,164	Land owners realize that its not the house that has value, its the land it sits on. Houses can be torn down for far less than you could spend remodeling, but they aren't making more land. That would require developers to come in with bucks (which they need to borrow at interest rates that make the whole thing economically fesible, so they can make a profit). And, also, lawyers to get the proper zoning changes, and compliance from members of the neighboring communities, etc., etc. Then state and county municipalities have to have the tax base to begin to put in proper roads, sewer systems, water access, build schools big enough to hold all the new children and enough books to educate, etc. Increasing the tax base is what this current housing boom was all about, that and some GREED through in as well. If you like the property, look past the house part, even envision the house you would like sitting there. Especially in THIS housing market crisis, people paid way too much for these 'houses' and really didn't get any/much land. A lot of people got sucked into the idea that bigger was better, even though they couldn't afford it, nor needed all the community amenities it came with. The land is what holds value, housng styles change, as do building materials, and especially technology in home building materials,ie., energy effiecient heating and cooling systems, insulation materials, siding materials, etc., etc. But, it really is location, location, location. Try to look past the older house, and think about the future. What seems far out of town today, could be QUITE different in ten years. When we bought our farm in 2001, we were 'Way' out there, and then, 'BAM', this housing boom happened, and all you heard about was this area we live in. But, luckily it didn't quite get here, though, the developers tried their hardest to make that happen, we were still just a little bit too far away. But remember that, and think if its where you want to live in 20 years if things had kept going the way they were?? JMO, but if you like the land, it could be worth the extra $$, even if the house isn't your dream home. It could be your dream farm one day. Good Luck, RB Last edited by redboy : 10-20-2008 at 07:27 AM.

10-20-2008, 07:07 AM
rivervu2 Started Join Date: Jun 2008 Location: Florida Posts: 2,515	In this case the value is in the land and outbuildings. Why don't you do a cost comparison of what the land would cost unimproved vs. the cost to build the barn and arena. Add to that the cost to build a decent house and then research what a turn-key operation like that would cost in your area. I would think an indoor arena is almost a must for serious training up there. Is the house liveable until you get the new house built? Is the fencing adequate? Do you have the resources to buy this place and build a nice house? Sounds like it would be a great opportunity if the numbers work for you! __________________ *"A government big enough to give you everything you want, is big enough to take away everything you have."* *Thomas Jefferson*

10-20-2008, 11:12 AM
EquineAlberta Kid Safe Join Date: Aug 2004 Location: Alberta, Canada Posts: 6,418	If you have an arena and a barn, why on earth would you need a nice house? You can make an offer on what you think is reasonible. Sometimes people price high just in case they can find a sucker. remember to consider the price of things like utilities and property taxes. Karen __________________ New Hillside Website The Art of Praise

10-20-2008, 05:56 PM
Laura VV Halter broke Join Date: Aug 2008 Location: Illinois Posts: 51	The house we saw is way out in the boonies. The house was horrid. It's not in a desirable area at all. We live in a nice suburban/rural area and have 2.5 acres and a nice, large house. This house was awful. There was only about 7 acres and a few outbuildings. The arena was quite nice (and way more than we need) but none of the other outbuildings were anything to write home about. The pastures were not totally fenced in as they seemed to count on a woody area and a very, very old barbed wire fence to keep the animals contained. It would cost way more to tear the thing down and rebuild than you'd ever get from the place. There's another piece of land close to the first one for about $150,000 less. It's got a river view and twice the land but no buildings. I'd rather have fewer, nicer buildings that are in an area closer to family. It amazes me how people think their homes are worth so much. Some of these places have been for sale for a year. Home sales have slowed here, but just within the last month.