Land value in Weston County? (Gillette, Newcastle: flat fee, for sale, real estate)

[dlw777]

Could some of you good folks please steer me towards a good source for determining a fair value for 160 acres of undeveloped land in Weston County?

Thanks so much in advance.

[sunsprit]

You'll need to contact two knowledgeable local sources:

1) A real estate agent (or several) in the area you're looking at who has knowledge of the most recent transactions, and

2) A professional real estate appraiser that serves the NE Wyoming area. You can locate these folks in the phone book ... but most likely, you'll find them based in Gillette because it's the economic center of the area.

Wyoming is a "non-reporting" state, so the information you seek is not publicly reported and not readily accessible so you can make valuation determinations from comps. You must rely upon people who are "in the trade" who would know of the transactions or a professional whose business is to find that information out from those in the trade or directly from the parties to a transaction.

Of course, the real estate agents aren't going to share information with you that they don't think will support a possible deal from you ... and the appraisers don't give away their information, so expect to pay a fee (which may be hourly based, or just a flat fee).

Do not be mislead into determining FMV's based upon the asked prices that you see in the area for 1/4 sections or larger properties. They may be for sale by unmotivated sellers who are "fishing" in the marketplace ... and will gladly sell at well above FMV prices, otherwise, they'll hold onto the property. In my experience, you also need to be very wary about buying real estate agent owned properties (which they must disclose to you their "agent ownership") in the area.

[jody_wy]

just looking at 4 or 5 realtors, listing seem to run around $2800-$3000/acre

[sunsprit]

Originally Posted by jody_wy

just looking at 4 or 5 realtors, listing seem to run around $2800-$3000/acre

There's my point made about basing FMV's upon what you're seeing for asked prices ....

My expectation after looking at a number of ranch properties over the last 6 years in the Newcastle area is closer to $1,500 per acre for undeveloped 1/2's or 1/4's. And that would be a rather high figure per acre ... I'd be offering less, perhaps a lot less, depending upon circumstances. Larger properties are asked at well under $1,000 per acre, and that includes the infrastructure, houses, water development, utilities, possible public lands leases in addition to the deeded acreage, etc.

A lot of the valuation will depend upon siting, wooded or not, water availability, utilities, access roads, views, and so forth. That's where the information from a qualified appraiser is going to be invaluable re FMV's for a given piece of "undeveloped" rural acreage in the area. Local knowledge is absolutely paramount to the valuation process.

$3,000 per acre in that area is a "vanity" price, not supported by the productive capacity or development value of the land in any way. It would only be supported by speculation ... and the area isn't that strong for development potential "boom times" in the near future. Especially with the current market in extractive industries in the region and current soft job market. At $480,000 just for raw land ... add in the costs of infrastructure and a house and you could easily be looking at a $mil property for a residence .... that's a lot of money to spend if you're looking at living at the place on one of the typical local incomes of the area.

[jody_wy]

alot of those listing had some timber.... but most had been logged in recent years, my thoughts listing were more along recreation,white tail, mulies , turkeys and maybe a elk

[sunsprit]

Originally Posted by jody_wy

alot of those listing had some timber.... but most had been logged in recent years, my thoughts listing were more along recreation,white tail, mulies , turkeys and maybe a elk

Indeed, most of the properties I've seen in that higher end asked price range were "vanity" properties ... sold as "executive hunting" recreational resort properties, and featuring the wildlife that's in the area. There are some spectacular canyons/wooded lands/lush hay meadow properties ... some on the market at $4,000 per acre for sizable properties ... typical of the Black Hills recreation/resort land. If the buyer can afford and justify this type of property acquisition, so be it ... you certainly couldn't justify such a purchase on it's farm or ranching productive value, nor pay for it on a local income.

But that's not the bulk of Weston County land ... which tends to be a lot sparser. There's a reason why most of Weston County is Thunder Basin National Grasslands, which has wildlife, but is much more stark/barren countryside than the Black Hills type properties.

That's why the local knowledge valuation is so important for a specific area/location.