The wife and I were considering buying an acre or two for maybe a storage garage and later building a home. It was just an idea and while we have looked around we’re not seriously considering anything at the moment.

I noticed a lot for sale while out working. I thought it was decent and has potential. Fully wooded, no utilities, needs completely cleared. I inquired about the price and was told $50k (turns out to be $27k/acre). Is that typical? Seems a bit excessive for typical western PA suburban area. Especially considering that I’d have to install all utilities and clear out the dense woods. It’s a sure no-go.

Property is crazy these days, people are asking for big money on just about anything that lists.

You'd have to find comps on property in the area to know if it's reasonable or someone trying to cash in on the real estate boom...

It’s all dependent on where it is. When we bought our place in 2005 it was 8K an acre. It’s 20K now. We are remote with an 8 mile dirt road to get to our house. In town it’s 40-50K an acres.

unfortunately right now that is probably the going price. Is it listed? Depending on the type of woods it could hold value as lumber. A couple of acres is prized as a piece that is large enough for elbow room to developed as a semi private homestead on the outskirts of an area with services. Those types of places have skyrocketed in the market as people think about a place outside the city.

It’s worth what someone is willing to pay for it. That’s not meant to be a smartass response, but there’s so many factors that go into it, I don’t think you are going to get much better advice. Based on my experiences in TN, MI, and FL, smaller lots cost more per acre than acreage does.

I’ll give two examples. There was a 1/2 acre lot in our old subdivision listed for $95,000. It had 35 feet of frontage in a major river and that 35 feet was enough to build a dock and meet the side set backs. I offered $45,000 and was rejected. A few months later, it was offered at auction, I bid $35,000, someone else bid $38,000 and won.

Next example, I bought two otherwise land locked lots adjoining a property I already owned. I paid $10,000. A few years later, the local water company decided to replace their water tower with on grade storage tank. The land the tower was in was too small, but my two lots and the undeveloped but platted “road" next to them would work. They offered $25,000 and I countered at $50,000 plus all expenses. They didn’t bat an eye which means I probably left money on the table.

In the first example, the bank found out it was worth much less than they thought. In the second example, Knowing the water company’s options, I’m sure I could have sold for more, but a little goodwill goes a long ways sometimes with respect to my plans for the rest of the property.

Until the money changes hands, it’s anybody’s guess.

If you do go this route, consider security when building the shed/garage, and insurance for the contents.

Reason I say this is where I live is in a rural area with low crime. What there is of it we get reported via email in the daily Sheriff's Report. A surprising amount of what gets reported is 'sheds broken into, tools stolen.'

RE: cost of holding the undeveloped forested land. Property tax treatment (at least here in NC) depends on what the use of the property is likely to be. We (in NC) have odd rules about how undeveloped property is taxed - very favorable valuation rules for actively farmed/forested property but very high valuations for properties the authorities treat otherwise - you may want to see how your state/county does this, and factor the likely property taxes into your cost analysis.

RE: valuation/pricing when buying the property. There should be some 'comps' (comparative sales prices) of raw land that the seller's agent should be able to show you. Assuming your prospective use is the same as other buyers of raw forested land, whoever bought those parcels did so with the expectations of bearing the same sort of costs as you envision (clearing, utilities, septic, etc.) and so the final negotiated price for the land would reflect them.

Final thought: raw land is also generally not very liquid. If your plans change, it may be hard to get your money out.

Kind of like asking how much is a car or how much is a house.
Depends. On a lot of things.

quote:

Originally posted by 220-9er:
Kind of like asking how much is a car or how much is a house.
Depends. On a lot of things.

This.

This is a pretty decent site where you can look at nearby comps...

https://www.landsofamerica.com/

We have several one acre plots with full utilities adjacent fosr $15k per acre.
A few miles out of town. Keeping it for now but the prices are going up around here.

quote:

Originally posted by mark123:
The wife and I were considering buying an acre or two for maybe a storage garage and later building a home. It was just an idea and while we have looked around we’re not seriously considering anything at the moment.

I noticed a lot for sale while out working. I thought it was decent and has potential. Fully wooded, no utilities, needs completely cleared. I inquired about the price and was told $50k (turns out to be $27k/acre). Is that typical? Seems a bit excessive for typical western PA suburban area. Especially considering that I’d have to install all utilities and clear out the dense woods. It’s a sure no-go.

I look at it as you buying a lot not acreage, and even unimproved building lots are high now. All things considered the smaller the lot the more per acre it will be because there are a lot of people interested in moving up to an acre or two for any number of reasons, room for an out building, garden, buffer from neighbors, etc. It seems a little high but in order to know if $50K is the going rate in your area you'll have to look at undeveloped land that's for sale as well as what's recently sold, for comparison. The fact it's in a suburb makes it more valuable than were it more rural. The main thing is, is it what you want for your future home site? If you really like it, it's probably worth it, otherwise keep looking.
21 years ago we had been looking for mostly wooded "get away property" with the intention of building a second home that would become our primary home after retiring. One Thursday I picked up the new "Land and Home" and saw what we eventually purchased, 49 acres mostly wooded with a stream, only 25 miles from town where we lived and worked, listed for $79,000. Even if the property wasn't that great it seemed like a fair price so I called the listing agent who faxed me a sketch of the property and exact location and the wife and I left work to check it out. Where the dirt road ended at this property there were 2 cars already there (one with a NJ plate) and people holding the same sketch walking around trying to get their bearings. In 15 minutes I saw enough to know it'd likely work so I called the listing agent and told her we'd take it for asking price. She seemed a little surprised but we drove directly to her agency up the road in MD and signed the contract that same morning.
At closing the agent pulled me aside and told me she had underestimated the value because over the next few days after we signed the contract she had 4 offers with one increasing to over asking price trying to buy it, which made me feel good. LOL a few weeks after closing when introducing myself to a neighbor he said "so you're the one who bought it, I sure hope you didn't pay the asking price!" The point being what wasn't worth $49,000 to him was to me.

Not knowing your area but seeing lots around me and in a few places I have friends and family I’d say that’s close (maybe a bit high IMO but I’m a tight old bastard). Until real estate settles back into reality, I wouldn’t buy anything I didn’t absolutely need.

Value depends on many factors. Most important are location and build ability. Can a septic be put in? Utilities nearby to connect? Too many wetlands? How many buildable lots are on the property, zoning laws allow building? Around here a 2 acre lot that has good perc tests, access to utilities and 2 buildable lots may go for the same as 20 acres of wooded wetlands.

The most direct answer to your question is to look up the most recent sale comps of similar parcels in the area. Some of these can be found on Zillow, or talk to a broker. They should show up in the local MLS.