Would you buy this home in our situation?

Farmland
 

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dobig said:
And just heard back from realtor. The seller wants to meet today at 3 to see the "color in our eye and look of our chin". Old school. ...
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Never negotiate face-to-face, always through an intermediary and taking ample time to think about alternatives. If the seller makes some kind of counteroffer to you, unless it is trivial, the answer should be "We'll need some time to think about that, then we'll get back to you [through the realtor]. Good luck.
 
dobig said:
Farmland
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Get it done you will never lose on that kind of property. I'm excited for you if all works out and I hope it does.
 
dobig said:
Aeriels looks like roughly 80 acres of good cropland.
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Good farmland in the midwest brings about $300 an acre per year cash rent. I'm not familiar with the farmland in your region but you may want to get a second opinion on your farmland value. It may be worth considerably more than the $50 an acre the current renter is paying. Its a competitive market right now.

I see this property from two separate (but connected) points of view. One as investment and the other as a home. You'd be buying both and should consider the value of both. I would not discourage you from buying it, in fact if you love it I think you should.

My biggest concern would be the revenue stream from the gas leases. I don't know that business and the future value of a well. I know lot of wells in Wyoming that went out of business when prices plummetted a few years ago. You don't want to mortgage income that can disappear that easily.
 
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marinauser said:
Am I the only one that finds it unusual that the mineral rights would be transferred to the new land owner? In my experience that would not happen.
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It's not common in our area, but we did get the mineral rights to the 30 acres we purchased. It was part of our negotiation.
 
Didn't get it.

Spent 2 1/2 hours going over everything. Better than expected. Buildings better condition than expected. Soy bean fields looked great. Even had a neat concrete bomb shelter in the barn with water and electricity. Good amount of deferred maintenance but nothing we couldn't handle.


Sat down with realtor and seller to sign the contract and asked for the 5th time since I first inquired about the place for the paperwork for the gas well royalties. Poor old lady confused untized gross royalties with what she got. Actual royalties were half what was advertised. Still a killer deal on a one of a kind place but we had to pass as that's too much for us without the full royalties promised. Went outside with realtor and explained we couldn't pay what we offered and told her we didn't want to offend seller but we couldn't pay more than $900,000 and left. Next person who sees it will likely buy it. Feel bad for the seller as she is elderly and a wonderful older lady but she just was confused. Realtor should have known better and verfied before advertising incorrectly.

Still a nice day and can't complain seeing a unique property and meeting some really nice people.
 
dobig said:
Didn't get it.

Spent 2 1/2 hours going over everything. Better than expected. Buildings better condition than expected. Soy bean fields looked great. Even had a neat concrete bomb shelter in the barn with water and electricity. Good amount of deferred maintenance but nothing we couldn't handle.


Sat down with realtor and seller to sign the contract and asked for the 5th time since I first inquired about the place for the paperwork for the gas well royalties. Poor old lady confused untized gross royalties with what she got. Actual royalties were half what was advertised. Still a killer deal on a one of a kind place but we had to pass as that's too much for us without the full royalties promised. Went outside with realtor and explained we couldn't pay what we offered and told her we didn't want to offend seller but we couldn't pay more than $900,000 and left. Next person who sees it will likely buy it. Feel bad for the seller as she is elderly and a wonderful older lady but she just was confused. Realtor should have known better and verfied before advertising incorrectly.

Still a nice day and can't complain seeing a unique property and meeting some really nice people.
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So, it really isn't over yet, right? She might change her mind or is it dead in the water?
 
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dobig said:
Property is too nice to last. Just listed yesterday. Will be gone this weekend for more than we're willing to spend.

If we weren't so close to retirement I would have bought it even with the reduced ogm royalties.

https://www.zillow.com/homedetails/988-Bullcreek-Rd-Butler-PA-16002/204742059_zpid/
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Wow…a friend listed a 1700’ house on small lot in 55+ community in community outside Seattle for $1.1M with $300 month HOA fee. It was listed yesterday and has a sale pending. I can’t believe these properties are similarly priced, but so different. It’s crazy.
 
The seller's realtor did a you and their client a disservice.

I'm glad you did your research and found out the truth about the lease.

I still think the 80 acres of farmland are worth more than $50 an acre annual rent.
 
The attempted sales on the property of the last few years paint a picture - seller has listed over and over, starting at 2.5m and reducing every time.

I'll bet the owner hasn't been up those stairs in all those years, those look treacherous!
 
The write up says gas lease not gas royalties?
Is there a well drilled?
or is this just a lease ?
my last lease was $3k per acre ( expired last year) , but there is not much drilling going on at the moment with low gas prices.
 
It sounds like at your preference the realtor did not bring the 900k offer to the owner. If you want the property at that price, I don't see any harm in making that offer.
 
Still working on it trying to make something work. Have to deal with the open house today.

We have some experience bringing old homesteads back to life. This was our last homestead we sold last year.

Before and after pictures.

yeKvVsS
 

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dobig said:
Still working on it trying to make something work. ...
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Be careful. One near-certain way to do a bad deal is to fall in love with the deal and base your decision on newly-developed optimism. Remember: If you are not willing to leave the table, you are not negotiating. You are begging.

That said, it does look like a nice place and it sounds like you realize you would be buying a hobby, not a property. At 52 I might look at that hard. Consider the scenario in another ten or 15 years, though, and the hobby might be less attractive.

Good luck, however this deal turns out.
 
Aerides said:
The attempted sales on the property of the last few years paint a picture - seller has listed over and over, starting at 2.5m and reducing every time.

I'll bet the owner hasn't been up those stairs in all those years, those look treacherous!
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Doubt it was listed over and over, just the price was reduced along the way...


But it seems like the time to sell is now and might get their asking price...


At least they put the correct number in for lease income.
 
OldShooter said:
That said, it does look like a nice place and it sounds like you realize you would be buying a hobby, not a property. At 52 I might look at that hard. Consider the scenario in another ten or 15 years, though, and the hobby might be less attractive.
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A place like that (I looked at the listing) would have appealed to me when I was in my early 40's and younger, less appealing in my 50's, and now that I'm 61 I automatically think "that's way too much work".
 
You need to know yourself and how much w*rk you are willing to put into managing such a property. Then (in my thinking) sinking that much into one thing breaks the rule of having more than XX% in one thing (like one stock or one bond or one property.) I don't recall what XX is, but it's much less than 50% which is about what you are committing. Just a thought as YMMV.
 
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Wait "got it"? You got the property?
 
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