Marketing Agricultural Land - Posted by David C. Cooper
Posted by David C. Cooper on June 08, 2007 at 10:21:21:
I’m talking with a seller about 20 acres of Agriculture (AG) Zoned property in a 100 yr flood plain in extreme Northern CA that I’d like to wholesale to an investor. It’s less than a mile from the ocean and a lake with a 2bd 2ba house built in the 90’s and an old redwood barn built like 100 years ago but in great shape.
The owner tried to parcel the land out and sell the plots but local government won’t rezone it Residential or allow him to break the property up. It is obviously useful as a ranch, not sure about farming on it because I don’t know what kind of crops would grow there. It could also be turned into a B&B or Dude Ranch type of vacation spot.
Vacant residential lots around here go for $60-100k/acre, but I don’t know where to look for AG comps. In a residential zone the house comps at about $150-180k ARV. It looks like it only needs cosmetic work. The land would sell for $1-2M and the owner is asking $600k and owns the property free and clear. He is flexible and I’m sure I can get a better price or definately terms, so I’m excited.
Then, I start thinking. This type of property seems like it would be difficult to market. The meat of the market is in SFRs in nice neighborhoods near schools and that’s where the buyers are. Most of those buyers aren’t interested in 20 acres even if it’s a great deal. I was thinking about calling local farms/ranches to see if they were interested. I’d like to have a clear idea of where I’m getting my buyer from before I make an offer because I don’t think any of the investors on my list really want AG property.
My question is how would you market this property and find a buyer?
Would it be easier to tackle the system and try to get it rezoned and broken up for residential development?