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I can remember having to explain to a lender in New Jersey why the closest comp that their appraiser could find for a country property down here was 20 miles away: "Well, here it's entirely possible that's the next neighbor down!"
When I'm trying to come up with comps for a rural property, I start with the land prices in the area, remembering that, just like houses, and swimsuits, you pay more per acre, or square foot, or square inch, for smaller ones than larger ones. Once we've got the basic average price per acre in the area, then we start with the amenities. Instead of a swimming pool, is there a stock tank, a pond, a year round creek? How about trees? Are they oaks or hackberries or pecan trees or mesquites? (Depending on which, trees could be a positive or a negative.) Instead of what kind of floors does it have, what kind of soil does it have? What kind of grasses? Are there any endangered species on the property? Does it have its ag exemption? (That last can be a biggie.)
Then, once that's done, we start with the house (which can be less important than the barn to some buyers, keep in mind) and any outbuildings. Where does the water come from? Well, city, private water? If well, how many and how deep? Presumably it's on septic - how old and what kind is it?
And so forth and so on. Yes, it's a fair question. But be prepared, when you ask it, to sit on the porch and jaw a spell.
It is, indeed, a whole nother ball game from doing a CMA on a house.
I had 3 different realtors tell me my house could be listed at $625K. Yet, when I look at listings in our zip code that are comparable, they are listed for less and not selling........so at this point, I would definitely get an appraisal done (if I wanted to sell that is). There is absolutely nothing within my area that is comparable to my house.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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As a rural Realtor, it can be VERY difficult to pin down a number on some homes, after a few years in the business, it becomes easier to make value judgments, but they can be highly subjective even though they are correct more times than not.
I guess you have to actually trust us to make the call.
Since we have been on the market a LONG time and are in the same situation as you are..rural with few recent comps, we have tried to figure every which way to arrive at a price we're comfortable with.
I feel we have done a good job by using the average sale price per acre of land ($12000. x 7) plus our barn (a finished building with heat/air/plumbing, etc) at the cost to build it ($60.000.) plus our house at $100. a sq ft (cheap when you consider the added amenities, etc.-$270,000).
This adds up to $414,000. and we've come down to $397,500 from our original asking price of $424,900.. Arrived at by consulting 5 realtors.
I'd say that's very fair and I feel comfortable that the price is completely justifiable. If you try figuring your place my way, maybe you can see how your price stacks up?
I don't know where you live, but we're in NE Ohio where prices have stayed rather even..not like some of the more volatile areas of the country.
In the same boat here and it was difficult! Land here apraises strangely to me. If it is ag and farmers only pay x so the comps base the acreage on that but if a developer bought the land then it goes way way up with out the developement. No equality that I can find. Now I did get an appraisal a yr ago and then when we pulled comps they came from a 20 mile radius. The house is listed 65k under last yrs appraisal.
Now here is the kicker, we had a contract and the mortgage company did their own appraisal site UNSEEN over the internet and refused to finance at contract price. So they came back and offer 100k less.
I'd like to add, having had to defend my ag, that in defending your ag you will want to take pictures with you of whatever you're currently doing, receipts for what you've done yourself, and, first and foremost, before you go down there, READ THE STATUTE! It's available online. Sometimes they think the statute says something that it doesn't, and if you've read it and have it fresh in your mind and question what they say it says and they have to check it, it can make all the difference.
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