WHO SAYS LAND VALUES ARE DOWN?
Yesterday (April 27, 2016) I attended an auction in Hiawatha, Kansas.
Two tracts of really good upland were offered for sale in Brown County, northeast of town. The first tract consisted of 155 acres with 149 tillable acres. It brought $1,600,000 or $10,738 per tillable acre. The second tract consisted of 105-107 acres with 105.72 tillable acres. It brought $1,425,000.00 or $13,517 per tillable acre. Those numbers are not typos, that’s the price they bought. Cash, close in 30 days. The whole sale was completed in about 45 minutes.
There was no room in the parking lot of the center where the sale was held and the room was full. Bidding was pretty fast and there were more than two bidders on each tract most of the way. The auctioneer (it wasn’t Barnes Realty, darn it!) was selling the tracts as total dollars, not by the acre and the bids were being raised $100,000 at a time until nearly the end.
The farms were good, the location was STRONG, and it was a good sale to say the least. The buyers on both tracts were neighbors. They were both successful farmers. They know what it takes buy land close to them, and they were willing to pay what they needed to own each tract.
DON’T LISTEN TO ANYONE IF THEY TELL YOU LAND IS NOT A GOOD INVESTMENT!