What is land worth guys?

[Hopperbin]

I guess land in my area has undergone many improvements that may not be reflected in the assessment. Also since my highest assessed land is also my poorest productively, we have a new assessment now so will see if many changes, I would immagine anyone wishing to sell has bragged his land up while others paying taxes for the next 30 years have given reasons for reducing the assessment. If you have driven past the land since forever and have experience with how you can improve the land your judgement is sound. Looks like you can make a good deal, myself I would jump at something like that. Then again I keep telling myself I am not buying anymore land.

[bluefargo]

Interesting discussion. I too have hilly, rocky, sloughy land (52000 assessment) that seems at times to out produce my flatter no rock land.(66000 assessment). But the flat land is way easier to farm and has 155 cult acres.
The lower assessed land has only 135 acres and is a pain to farm. The sloughs are deep and there isn't much potential to improve.

Freewheat - if the land is closeby, you are confident it is productive and you can make the payments buy it!

It looks like you will be bidding about $86000 which would be a little high for this area but it sounds like you are in a pretty productive area.

[gustgd]

Another thought on assessment is that's what the lenders will use as a value
ex Affinity will only lend at 75% of assessed value.
or If the land is paid off loan 75% of assessed value as security on your LOC which gets you better rates.

[checking]

Bluefargo, you may have a point. I guess I'm just down on assessment because it isn't done often enough to reflect changing positions, which then causes farmers going out of business to say that they require 1.3 or 1.7 times assessement. If it was current a person could rely on it, and plus or minus land value based on available competition, location, ability to pay for it, alternate uses, building and storage assets, hunting, privacy, scenery, the neighbour complained my horse chewed the paint off the hood of his truck and there is a nice little pasture over there, and on and on. It's either that, or the reeve of the municipality telling me that the highest assessed land in the entire municipality, which I happened to own at the time, should never have been broken up. He had a spear to throw, and I wasn't about to be on the receiving end of his point! I've seen beautiful crops grown on sandpiles that had the groceries applied, and it rained. Same year, I've had lodged disasters on heavy clay. So, spear aside, point taken. Have a good year.

[bluefargo]

Very good point gustgd.

The "new" assessment was set up to more accurately reflect the current value of land. Ofcourse land values are always changing so the actual assessed value does get out of date as compared to the market fairly quickly.
But the system does a great job of indicating the relative value of one quarter vrs another.
Its a good system and we are lucky to have it.

[bluefargo]

Checking
I posted before I saw your reply.

I agree with most of what you said. Right now as I understand it, the system looks at only the agricultural potential.

And you are right. I wish it could be kept more up to date.