Posted by Mark (WV) on January 25, 2002 at 11:24:43:
I really don’t know where it is located.Just working off pics and a person that has been to the property. My exit if the deal goes through will be to sell the house with about 100 acres to a buyer allready on the shelf.
I was thinking that the land value would have to be at or above 1000 per and any house that is brick here that size would be about 100k,so that was what I was looking for a round figure for the land value.
At your guess of 1 to 1.2 per I should be all right.When I made the offer they had asked for 250k and mine was for all cash at 170k, so the only way I could lose was if land would fall to the level of around 500 per.
What I was thinking was that if the land was good for about 800 and the house would come in at 100 with about 15 in repairs.
So this is what it would look like,
Land @ 800 per = $128,000
House as is $ 42,000
total price $170,000
Sell @ 100 acres at 1200 per = $120,000
with house before repairs = $60,000
Total sale $180,000
Profit $10,000
Land remaining 60 acres ? $
I was just afraid when I go to the place in about a week land would be worth 100 bucks an acre !
I have it sold geting 50 k down and bank money for the rest if it appraises out at the above figures.Should do well having the 60 ac. left over for the real profit,like you said if nothing else the timber should be worth 5oo per ac. so that would be all profit.
Thanks to all
Mark
Posted by Mark (WV) on January 24, 2002 at 20:46:33:
I know this is sort of weird to ask, but I put a property under contract today an need some help from someone in E. Ohio.
This is one of those site unseen deals that might bite me but the risk is understood and I can handle it.
The property is in the Zanesville area of Muskingdom county.IT is a 3/2 brick ranch all I have seen is a pic. and house measurements . The house is about 1400sf with a carport it has 160 acres of land that is 50/50 woodland and fields.
I have it on contract for 170k and have put 50k down on it with a wire transfer of funds. The house is about 4 hours from me so due to time constraints I had to move or lose the deal and it took cash to get them to accept the offer.
What I need is someone that is from around there to tell me off the top of there head, the value of land in this county and what this type of house normally would sell for.
I know with out going to see the house it would be immpossibe to get a good close comp , but all I can ask for is to be within 30- 40 % of value.
I took a shot and it might get me but I don’t think so, But if someone that from around there is investing they would know for sure.I still have a exit if it won’t comp out but I would sleep better for the next couple of days if I knew for sure.
Mark:
$1000 to $1200 per acre should be a safe number. There are several factors that could kick this up, however. You mentioned half the property was in timber, so there could be some extra value there. Likewise, there’s gas and oil in this area and this could add some value as well. If the property is along a state highway (or just off one) and close to I-70 it could have more value. By the same token, if it’s really out in the sticks. it could be less.
Your best bet might be to put a few acres with the house (5 - 10) and sell it apart from the land. Residential lenders here don’t tend to attach much value to land. If you could give me a better idea of where in the county the property is located and how much is tillable farmland, I might be able to be a little more helpful.