What would you market this farmette for pricewise?

[fordtraktor]

I kind of disagree with your realtor about having the market move the price, because you have a niche item. I would expect it to seller slower than a SFH is a suburb.

My current property sat on the market for 4 months because it’s just a weird mix of nice house and equine facilities. I snapped it up in a day and was thrilled to find it. If I sell I expect it would take even longer because I have significantly invested in the horse facilities, so now I have a nice house plus two barns/indoor/boarding business. It is going to take a special buyer to want exactly that (or be willing to pay me enough to be willing to sell it!) I could price without the horse facilities, but when that time comes I will want the premium of either selling to a horse person or subdivider (I am slowly being swallowed up by the city).

[S1969]

@fordtraktor

My current property sat on the market for 4 months because it’s just a weird mix of nice house and equine facilities.

When was this?

Few things are in the market for 4 months these days. The realtor expects that the low inventory of farms will speed the process. Obviously if I insist on a certain price point and am willing to wait for it, I might get that offer. But I also might not.

There is a bed and breakfast on the market near me and it just moved to pending. I think it’s been listed for about six months. That’s a real niche property. A farm isn’t that unusual, just not as common as a suburban home.

[JanM]

Where I live (lower Alabama) the housing prices for turnkey are staying at $143 a sq ft, and depending on condition, and location sell very quickly.

There are others that have been on the market, at lower price per sq ft, are either way over priced, or need quite a bit of work, and they’ve been sitting on the market. Some have actually been on the market long enough to switch real estate agents, so over 3 months, and 6 months in some cases. When one of the unsold ones that’s been lingering comes back with another agent, they often have a price drop.

A couple of years ago, when the housing market had low inventory, but soaring prices, many sold here for well over asking, no inspections. Many of the contracts fell through when the person couldn’t get financing. The problem here is selling your current house, and trying to find something you can afford to move to. Rental prices have risen to where I think they’re a ripoff, but people have to pay it for a nice location, and a nice house, or rent something that’s not so nice, but more affordable.

I think here the rising interest rates have slowed the market for over-priced, and homes that need work.

[OnAMission]

Here all our listing contracts are for a year with few exceptions. Most of our properties are over-priced (sellers insist that the boom is not over for them) so many are going into second or third years, just waiting. Our buyers are still half financing (house matters) or cash (nothing matters).

[fordtraktor]

It was a while ago but I know a number of people who have sold their farms recently and it often takes longer/is not a bidding war situation. I am sure it depends on your local market, but I would not price low and expect to get more at the very least. Also inspections…something is always going to be “wrong” with a farm.

[S1969]

@fordtraktor

I am sure it depends on your local market, but I would not price low and expect to get more at the very least.

Oh, it’s not pricing “low” – it’s pricing what seems reasonable based on comps in other districts. But it’s such a guess because each farm is unique in its own way. For example - her experience is that people who are looking for a horse farm are less tied to school district compared to people just looking for a home. My district is more expensive, and you can see the different average price by district if you compare homes. But she is not going to assume that my farm will sell for $XX more than a farm in the next district because it might not happen. (Whereas if it was only a house, you could make that assumption.)

But, if someone is looking for a farm in this school district, they may well offer over the asking price. She just doesn’t want me to bank on it. If there were two buyers looking in this district - it could become a bidding war, or at least, might push the sales price up. But - because farm buyers are fewer in number - it’s better not to assume that will happen.

I had a Spectrum sales guy come to the door this week and in an effort to avoid a conversation about why I don’t intend to upgrade, I told him I would be listing the house soon. And he was instantly interested - his kids are in this district, they want room for sheep & chickens, etc. I doubt he can afford it…but who knows. I told him to keep his eyes out in the future, but wasn’t sure when it would be listed.