I recently inherited some land in east central South Dakota, about 240 acres, pasture land with a solar well. There's a rancher currently renting the land. Is there a good rule of thumb to estimate the value? Also, what is a fair rental rate? Is there a Zillow for farm land? I guess I need to go get it appraised soon.
inherited some land, what is worth?
- Thread starter hobbes
- Start date
If you want to know for sure you can get an appraisal. If you want a general idea, contact a realtor. Tell them you're thinking about selling, and to have them do a market analysis for you. They will give you a range of values. If you are thinking about selling the land then I would definitely purchase an appraisal, and follow up with a realtor. But if you're just curious about the value, I would go with the realtor option.
Depends on where in south Dakota. I work there a lot. Dupree is a lot different than Mitchell... So location is bigger there than anywhere.
Pasture.... $1500 per acre to $4000 per acre. Maybe less if it's way out west.
Pasture.... $1500 per acre to $4000 per acre. Maybe less if it's way out west.
You might be able to but probably not. In a lot of cases, the reason land is pasture is because its not good enough to be good crop ground. Thats why in Iowa you dont see a ton of pasture except in really hilly areas, poor ground, southern iowa ect. You have to think of your return on investment. WIth say 6 dollar corn, you will get way more out of your 250 acres planting corn on it than by putting 125 cows on it so it more than likely isnt the best crop ground.
Now on to how much you should get. I realize as a city person your main concern is more than likely getting max dollar amount for the land. If that guy is paying $125 an acre, and you find someone that will give you $126, you will take it. That isn't always best. You have to take in to account how long the guy has rented it, what he has down to take care of it, improvements he has made ect. Also take into account that this is how this guy makes his money. My brother had to quit farming for 4 years because his landlord passed and the kids rented it out to their friend. Now if someone will pay double, then that might be worth looking into, but always give the current renter the opportunity to match it. As soon as someone finds out who has the land now, you will have your phone ringing off the hook with guys trying to steal it away. There is nothing worse than when the land you rent gets passed down to someone that doesn't have a clue how things work.