Homestead mailing list

["Gloria Morris" <gloriamorris59 AT gmail.com>]

Hi, Clint!

Hope I can be of some help. I'm just going to toss out a few ideas, as
I've bought and sold a few pieces of property, learned some lessons
the hard way, etc.

On 10/4/06, Clint L. Novak <CNovak AT cns.com> wrote:
> So, we went on our trip to Missouri.  We were going to look at 39 acres
> for $72,000 which turned out to be almost all steep hill and the realtor
> shows us a 30 acre piece that is more usable for $115,000 which is
> pretty far over our budget.

First, if you didn't see the piece of land that was perfect for your
needs, I would suggest that you ask yourself "what is the rush?"
Unless there is a pressing need to BUY NOW, perhaps you should take a
deep breath and wait for a more suitable property to come along?

> Here's the strange part:  We tried to look at the same piece in June but
> it had supposedly be "just sold yesterday" when I called on it.  The MLS
> showed it for $95,000.  Now the guy who bought it is the same guy who
> owned it sometime in the recent past.  He just decided to buy it again,
> and the realtor convinced him to sell it again 3 months later(for
> $20,000 more).  I emailed the realtor to get the new MLS and he said
> there isn't one, he just has an "Authorization to Show".

Many people buy land as an investment. Under those circumstances, it
is pretty much always for sale should the right buyer come along. This
is not a pressure sale, therefore, and it is doubtful that this person
will agree to sell to you for anything close to his purchase price, as
he does not need to sell it.

> Something seems odd about the whole deal, but we like the property.  It
> only has 10-12 acres of usable land, but a fairly nice access to the
> Black River.  He already said the owner would probably take $10,000
> less, which is only still $10,000 more than it was advertised at in
> June. Going price for riverfront land is usually about $2000 an acre and
> they claim it has $20,000 in improvements, which gets me a price tag of
> about $80,000.  The improvements incude a well, electric and septic(not
> where I'd like it) and a slab where a cabin could go(again not where I'd
> put it).

Improvements are only of value if they would have utility to the
potential buyer. The beginnings of a building (a slab) can add or
detract from the value of a piece of land, depending on the buyer. I
have seen such properties sit on the market for a couple of years
before the seller finally acknowledges that the "improvements" are not
those that buyers in the market are wanting, and that the lovely slab,
poorly placed or oddly shaped or just the wrong size for what most
people will want, will likely be jackhammered out by the new owners.
To YOU, the slab does not add value, as its location is not what you
want. What about its size and shape? Would you be happy utilizing that
slab? To YOU, the septic adds debatable value, again because of its
location. Do you really want to pay for "improvements" that have
little or no value to you?

> We've taken a slow cautious approach and if it sells, so be it, I'm just
> not sure what all needs to happen to ensure we don't get taken.

Go with your gut feelings. You like the property, or at least some
aspects of the property. But do you like it well enough to do this? My
thought is this: Don't let the emotional desire of wanting homestead
land push you into buying land at a price you cannot really afford,
with improvements that do not really fit your desires and needs, and
with considerable acreage that is unusable. Remember too that you will
pay taxes on the land whether you can use it or not. This is not the
last piece of available homesteading land in Missouri, after all!
Maybe another trip to MO later on, possibly with a different realtor
involved as the buyer's representative, would be a good idea.

> Any advice or opinions would be appreciated.

That's just my two cents. Take it for what it's worth to you! ;)

Gloria