Cost Appraoch Insanity!

[Mztk1]

Put me on speed dial. Just in case, please.

I have listings on vacant land available at $2, $833 and $116. These are buildable lots.

I have a closed sale on a vacant lot for $1 and one for $850. The one for $850 is in Port Charlotte.

I know developments that were started in the 1940s and 1950s (Indian Lake Estates for one) where there are intermitten houses blocked from access because the forest grew on one part of the street. The good lots, with full access, that are close to the lake and rec facilities but not on the water, might sell for $9,000 an half acre. The ones that are interior with sod and trees covering their access and sugar sand leading the way, couldn't be given away I bet.

If you want the listings on the $2 and $116 and $833 lot, let me know. You too can own a slice of a swamp here in sunny FLA.

 

[Mr Rex]

I have listings on vacant land available at $2, $833 and $116. These are buildable lots.

I have a closed sale on a vacant lot for $1 and one for $850. The one for $850 is in Port Charlotte.

I know developments that were started in the 1940s and 1950s (Indian Lake Estates for one) where there are intermitten houses blocked from access because the forest grew on one part of the street. The good lots, with full access, that are close to the lake and rec facilities but not on the water, might sell for $9,000 an half acre. The ones that are interior with sod and trees covering their access and sugar sand leading the way, couldn't be given away I bet.

If you want the listings on the $2 and $116 and $833 lot, let me know. You too can own a slice of a swamp here in sunny FLA.

I'm sure, somebody sold somebody some land. The swamp land you own and are trying to sell now has value, just as it did when you sold it without full disclosure and with a local market froth.

 

[Mztk1]

I'm sure, somebody sold somebody some land. The swamp land you own and are trying to sell now has value, just as it did when you sold it without full disclosure and with a local market froth.

I don't own swamp land, I just used the collective "you, too". But the reality is if someone was sold a bill of goods and now they can't sell it being honest for $2, then, since market value is defined as a well informed buyer and well informed seller, the value is at most $2.

The lots with "zero" market value are definately out there.

 

[Mr Rex]

I see taxes as 600+ annually. So its under $600, why is the tax so high on worthess property?

 

[Lee Lansford]

Lee Im glad you chimed in...

[/COLOR]

PE, thank you.

Some of these strings seem to go round and round and...well, you get the idea. I get dizzy trying to follow all of the thoughts.

Lee

 

[Mztk1]

I see taxes as 600+ annually. So its under $600, why is the tax so high on worthess property?

Because the values are dropping like a rock. Most loss in this market is related to a drop in land values. These lots were selling for about $10,000 a year ago or so. I got one that was overpriced at $17,900 and ended up selling for $850. Land values are taking the biggest beating and the fact is, there are lots worth zilch, nada, zero - or at least $1 because transaction amounts of $1 must be posted with the most counties here, others require $10 and still others $100.

 

[Michigan CG]

Rex .. I dont even know where this lot is .. and Im all in at $5.

Just got home....what an interesting thread. I have done work in McHenry County Illinois...this is where the lot is located I believe (according to my memory). I too would pay $5 for a lot there. There is definitely value. High taxes and all, but not a distressed area in terms of urban blight.

I do however take exception to some who say land (or land with improvements) cannot be valued at $0. Mr. TJSUM has shown properties selling for $1 in Maryland. Detroit and surrounding areas are doing that too. And there are not tax incentives. Some municipalities are fighting over these properties that they want to buy for $1. Willing seller...they don't want this POS that will not be usable for many years. Willing buyer (municipality) wants to start rebuilding an inner city that has been in turmoil for two decades and will be for two more decades.

I happen to know a CG appraiser who does many REO properties in SE Michigan and very often gives value close to $0.

Anyone who wants to buy properties at $0 or $1 or $5 give me a call. I can hook you up with hundreds of them.

Unfortunately Dave, I don't think there are properties in McHenry County like that. Way too much money there.

 

[Michigan CG]

I’m in on that free land too…

Donna, shame on you....surely you read about the Detroit housing market since you live in Ohio. I can hook you up too, actually know a broker who will sell you all the land you want at $1 (bring your pit bull, body guard and uzi to see your prospective property).

 

[Michigan CG]

Any bets that they are getting tax credits for a charitable donation based on an appraisal of the value of the dirt +?

I will take that bet.

 

[Michigan CG]

I see taxes as 600+ annually. So its under $600, why is the tax so high on worthess property?

Special assessments that are there no matter what the property is worth. Many large cities have these, the farther east you go the more prominent they are from what I have read. Assessor can give the property zero value, but the other taxes are still there no matter what.