So let me tell you about my dilemma and see what you all think.

Currently I hunt a place out in north central texas. it's a very nice place that a friend owns on about 160 acres. The topology is nice, quite a few elevation changes, tank, hardwoods, lots of plowed fields that we usually plant with winter oats, etc.

Beside the spot I hunt is a 40 acre tract that I think is really nice. It is right off a county road, has 2 wells, electricity, creek running through, access, etc.

the 40 acres went up for sale and we talked about it. it would make a good addition to the 160 acres already there even though I would own the 40, we would probably work some community thing out by adding a gate between the two, etc.

The people who own it now originally wanted $3750 an acre and the broker figured they would probably take $3250. They didn't have any takers. Recently we understand they "really" want to sell the land as quick as possible, so I believe they will take even less. I might want to make an offer on the property, but would like some advice on where to start. heck, I'm not even sure this is a good decision as a whole..

here is a screenshot of the land, green is where i hunt, already owned by someone else who is a friend, yellow is what is for sale.

http://screencast.com/t/kGUzIwlN

it's a scary proposition, but it sure would be nice I think.

Not sure were excatly were the 40 acres you are looking at is located but last month we purchased another 79 acres that joins our 200 we all ready have out in Callahan county couple of hrs west of Dallas and we only paid $1600 an acre.To me $3250 an acre seems awfull high I'm sure you could find a better deal than that just my .02 worth

Did I miss the county and location? The price seems high with the description of "north central"

It may be high, or it may not be. I paid $3200/acre on my 40 acres and the average selling price of parcels between 25 and 100 acres in my area is close to $6000/acre. So obviously I was quite happy to pay $3200.

As far as whether or not it's a good idea, you're more familiar with the land than anyone on this board. If the hunting is good and you like the area, by all means, go for it. But you definitely need to ask yourself a few questions:

- Would you still consider buying it if your friend sold his 160 acres? You never know when that will occur.
- Is the potential for any of the other neighbors to effectively ruin the place there?
- Is the land in a compromised spot where it may one day be surrounded by tons of "ranchettes" or something similar that could kill the hunting?

Like I said, you know the place better than anyone on this board. Just make sure you're comfortable and make a market or slightly below market offer.

Good luck.

Land that size is going for $1800 to $2300 here in Stephens county. If you can get it for the right price, land is always a good investment. Rarely does land go down in price. It may hold it's own for several years but when the economy is booming it skyrockets.

I think it's a bit (a lot) high too. The spot is in Erath county. It does have structure on it (2 houses in pretty bad shape), but I don't think I would want to keep it.

I think right now is really a good time to negotiate down though.

what's that place behind it?

A dairy. Not much I can do about that.

Sometimes a dairy can attract Deer. They do around here. The cool thing about a dairy is when they have to dump a load of moo juice, it's usually during the summer, not during hunting season. They are SE of us, when the wind is out of the SE, it smells like the stock show around here. But when they dump a bad load, It's just about unbreathable outside.

From a Realtor's perspective:
1. Property has been on market how long with no takers?
2. Compare to other sold properties of similar size and location.
3. Access/road frontage, it looks like there is only the upper right corner for access/frontage, that could shave some value.
4. It does have 2 wells and probably septic as there are two structures.
5. Is it listed for lot value only? Meaning the only value they are placing on the property is the land itself.
6. Future value (highest and best use). Does the dairy have negative effect on value? Not only in your mind but future purchasers as well?
7. Ultimately, what you offer is what it is worth to you.

I know the place/area.. There are good deer around there for sure!

It has been on the market for about 8 months. The dairy isn't a big deal.. It does cause the nitrate levels to increase in local tanks and sometimes the flies are unbearable. Lot value only, the structures are old and I would probably remove them (more expense).

It's hard to tell with comp properties around the area. There are wind energy turbines all around, so everyone thinks their land is worth more than what it probably is.

Is there an ag exemption on the property? You can also check the appraisal district valuation...not always a good indicator of market value but good info none the less.

Erath co isnt even near where I thought "north central" Texas was! Seems like a decent price for that area but I would get comps for the last land sold that is similar. Lots of people are "asking" but VERY FEW seems to be selling. When I bought my land, we were able to find about 5 comps that were "similar" to mine.

That is a good question on AG exempt and I would find that out asap.

With the flies and smell I would offer half since all you want it for is rec value. No one would want to build there unless the dairy shutdown it sounds like.

It's ag exempt AND on the very tip top corner there is a renter who pays about $275 a month. If I were to do this, I would keep that rolling. Currently cows and wonderful equine roam the land. I'm awaiting the appraisal.

You don't think it's out of line to offer 75k on a place listed for 150k? I mean, I guess nothing ever hurts, but seems impossible. Of course, they haven't sold it yet.

You are free to offer whatever you like on a property, the only one to say it's out of line is the seller.

Sometimes it boils down to money. Money spent to get a deer, if that's your goal. $100,000 in investments, getting say
6%=$6000. What kind of a deer can you shoot for that yearly and on what kind of a lease? I got 20% on my money last year.
Just a thought.

The tax appraisal on the land is about $138,000. The house that stands there is appraised at about 25k. So for 40 acres (minus the house) that is $3450.

The tax appraisal on 140 acres adjacent to the 40 acres is $265,000 which comes out to $1892 per acre.

There is nothing on the 40 acres that makes it more valuable except the fact is has a homestead (which has its own taxes). Is it because it has a homestead that it is appraised so high? Just trying to make sense out of it.

Thank you for the valuable information thus far. It's been helpful.

No, the homestead has no bearing on the land value (appraisal wise), the per acre value is probably more of reflection of the amount of land. A 5 acre tract will cost more per acre than a 20 acre tract and so on.

Yeah, but a 140 acre tract shouldn't cost slightly over half of what a 40 acre tract costs. The spread between those sizes in property is about 12-15% on a per/acre basis.

jaymz - why don't you have a broker representing you?

I do, I am just trying to work out a little due diligence.. get educated ya know

I am rethinking the entire thing. I don't really need a place to hunt so the purchase would be an investment.. I don't know that I need that type of investment right now. All I would want to do is improve on it, put a big old duck tank on it.

However, I wouldn't have the money to do anything on it, i'd be broke paying off the loan! hehe

Though I sure would like it!

When my Dad passed away, the guy who manages the money wanted me to put my share into stock market and other investments, I told him no way. I wanted to invest the money in land, so I purchase several hundred acres. If I had put the money in the market I would have lost more than half of it in the last couple of years. I dont think you can go wrong buying land.....

Had you put the money in the market a few months later you would come close to doubling your money by now. You never know. Land hasn't exactly appreciated in the past 3 years for most locations but you still owe taxes and spend on improvements. If you have the spare cash and get a good price it is a great idea. But over paying and just have enough to pay a note is not a wise investment.