Jason, Even though it is over 80 acres it is still just a building lot. Isn't $400,000 a lot for a lot in that area?

Bill Roberts

Hi Bill- You are right, it is a building lot, but could be used as pasture but with the EQIP program you can not allow the cattle in the water so you have to lay a wire for them to keep out.  You also can not till the land for crops. 

As far as asking price it is $5000 per acre is not high at all for the area.  It is located inside the Omaha Metropolatin Statistical Area.  If you are familiar with the ins and outs of MSA markets and especially the "Regeneration of Rural America"  you know the two work together to bring great value to pieces like this.  With a brand new earth dam, cleaned timber, bringing electricity 2200 feet, a water well, and newly planted grasses the owner has put a considerable amount of money into this property already further increasing the value. 

Large tract building sites with ponds bring lots of attention.  The last piece I had comparable to this I sold had under contact in 21 days.  Since our area is covered in Loess deposits (crushed rock from glaciers) it does not always hold water well, but established proven ponds such as this one that is 35 feet deep are few and far between in the area.  I haven't even touched on the privacy or the view- two often sought after attributes of a large tract lot.

To give you a comp a recent sale in that area (<1 mile) a 40 acre piece with a 2 acre pond next to the road sold for over $4000 per acre.  They will be using the 40 acres as a building lot. 

Jason, I don't want to tell you your business but using that 40 acre plot as a comp leaves me with the idea that your 84 acre plot is only worth about $200,000 because there is little utility in the additional 44 acres.

Bill Roberts

There is a ton of utility in the extra 44 acres Bill?  I'm not sure where you are getting that?  Lets face it Bill, you're in San Diego and I am in Iowa.  Two different worlds.  I work in this real estate market on a daily basis and these are highly sought after lots?  The owners are asking $420,000, its worth $420,000 and I'm confident they will get $420,000.  I have clients flying in from 3 different parts of the United States to see it and its only been on the market a week.

Jason, I meant no offense. I wish you the very best luck with this listing.

Bill Roberts

I'm not offended Bill, not at all, just surprised at your comments.  If by "utility" you mean that the additional 44 acres will be "overkill" you might not understanding grazing or the cost of feeding cattle and horses.  This lot which is 44 acres larger than the other lot can support twice the livestock or provide a better recreational experience.  If you have 40 acres you only have so much room to do so much, but with an additional 44 acres you have many many more opportunities, and much more grass to support your livestock.  You can hunt, put in trails, have space to ride your horses and not on the same path over and over, you can get the home farther from the recreation.  The 84 acre piece is much more desirable than the 40 acre comp.  While its not a true strict comp, I only brought it up because you had questioned price.  Just the fact this one has 84 acres together ads additional value.

Jason, Thank you for your analysis. It does sound desirable.

Bill Roberts

Hello Jason,

Is this property still for sale?  If so, I would like to drive out to see it (and would need directions).

Thanks in advance,

Flint Calvin (fcalvin@yahoo.com)