[MichiganDeb]

I have an opportunity to buy a 2600+ sq ft house (beautiful contemporary) on 8-10 acres in Laingsburg, Michigan. The area is agriculture-zoned. There are maybe 2 or 3 similar type homes within 2-4 miles (occupied), but it's mostly farm land (cows on the property next door, etc.). My friend who is very experienced in the real estate industry (though he's not a realtor) says that regardless of the quality of the home on the property, what I'm really buying is agricultural land and that I should base my offer on that, rather than on what the seller is asking for the house, which would put my offer WAY below the asking price. The home has been on the market for 8+ months, and the local economy is in the tank, so the seller is very motivated. Your thoughts? Anyone?

[Bydand]

Your friend is kind of correct. You are buying land that is zoned so it could be used for agriculture, but IS it? You are looking at a residential property that just so happens to be zoned for other uses. It isn't a bare chuck of Ag land, it has a house so make an offer according to comps (your Realtor would be the best one to ask what is realistic).

[MichiganDeb]

Thanks Bydand. I'll take your advice and run it by my realtor.

[Dwatted Wabbit]

I'm not sure about Michigan, but in some states like NH and ME you can get a property tax break known as current use. A plan for the land is set up with a county agent or someone like that, the land can be forest, farm, etc., and there are big tax advantages to be had.
In NH and ME there must be a minimum of 10 acres in current use, that means you need 10 acres plus the land the house, driveway, outbuildings, etc. sit on.
It's sure worth a look.
Good luck, that's the sort of place we'd like to take a close look at. Just think of the veggie garden you could have!

[Giesela]

General rule of thumb for land - the fewer number of acres the more you'll pay per acre.
I.e 500 acres of crop land will be less an acre than 50.
Your 8-10 acres is ag zoned but its too small to really "farm". The acre the house is on is usually zoned some sort of residential. The other acres will go for more than regular farm acres but less than a lot in a development.
Beforwarned - out there in the country you have very little protection against zoning changes and other weird things going in next door - like a hog slaughtering plant or a tire burning plant.

[thebreadlady]

if you buy a home in farming country it is always a gamble. the family dairy down the road from us with a few pastured cows is now a milk factory (4 to 500 cows now) with more and more confinement buildings going up and the cows never get out at all.
what you see out the window on sale day is not guaranteed to last. farmers go broke or die and the land is sold by the heirs. remember, the lot you can buy today was once another farm that he looked out his window at....