Crazy Land Prices!!!
- Thread starter Shovelbuck
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doubledrop32
New Member
Some land up around Sioux city (don't remember the small town ) sold for $21900 about a month ago. 80 acres that bright around $1.76 million
seven twenty
PMA Member
Keep in mind that there were 4 sellers listed. If 2 of them were buying the other 2 out, it only sold for 1/2 that. (Only $8450/acre changed hands) 1/4 if you figure the 2 buyers split it.
We had a situation like that around here last mo. Guy buying his 1/2 fm the rest of the family who had been willed the other 1/2. They insisted on an auction, people not in the know thought he was crazy bidding what he did for "junk" land, but in the end it only cost him 1/2 of the sale price.
We had a situation like that around here last mo. Guy buying his 1/2 fm the rest of the family who had been willed the other 1/2. They insisted on an auction, people not in the know thought he was crazy bidding what he did for "junk" land, but in the end it only cost him 1/2 of the sale price.
droptine37
Life Member
This truly is amazing. How do you short farmland? This is the perfect example of a bubble in my opinion? I know with residential real estate guys could buy credit default swaps to get on the other side of the housing bubble. Not sure farmland has as easy of a way to take the other side.
Another interesting thing about this "land" rise. It's really mainly the class A soils that are garnering all the money. Class b and c soils and rec ground are not seeing the same increases the top soil ground is receiving. We actually just got an appraisal done on some Rec ground we were planning to sell and were stunned at how low the appraisal was. It actually prevented the sale from going thru. Just a FYI for land owners who see articles like this and assume their ground is increasing at the same rate. Unless you can find a cash buyer right now for rec ground from what I can tell you'll be hard pressed to get a bank to loan someone money on anything valued much higher than 3k. This was northern Illinois to boot. Hour and half from downtown Chicago. I am sure all situations are different but interesting for sure.
Another interesting thing about this "land" rise. It's really mainly the class A soils that are garnering all the money. Class b and c soils and rec ground are not seeing the same increases the top soil ground is receiving. We actually just got an appraisal done on some Rec ground we were planning to sell and were stunned at how low the appraisal was. It actually prevented the sale from going thru. Just a FYI for land owners who see articles like this and assume their ground is increasing at the same rate. Unless you can find a cash buyer right now for rec ground from what I can tell you'll be hard pressed to get a bank to loan someone money on anything valued much higher than 3k. This was northern Illinois to boot. Hour and half from downtown Chicago. I am sure all situations are different but interesting for sure.
