Does ” PRICE per ACRE” mean anything ?

Well the short answer is no , but there’s always the exception. Price per acre is one of those phrases that’s been around forever and is still mentioned from time to time. Most buyers / sellers realize it doesn’t mean much but I think we should still ask why and when. Let’s do that …

So a guy calls me and says ” that’s $XX per acre” and I say “so what?” . When any of us are looking to buy a recreational property we’re rarely looking at a property so big that price per acre is ever a consideration. By that I mean we’re looking at smaller parcels where the features of the land are what drives the price. For example a 10 acre lot might have a stream or some kind of water frontage , maybe a nice driveway entry and some beautiful woods. That piece of land is never going to be priced by the acre , it’s priced by the what the place has to offer , and it should be. Just as a 10 acre property next to it that has no water , no driveway and no trees is going to be priced significantly lower for obvious reasons. This is what we do at all day long everyday. Those of you who have looked around at prices etc. know already that smaller parcels are never priced per acre. If they were there would be almost no value but we know all these lots have pretty significant value.

Price per acre comes into play when we’re looking at a property that is significant in the number of acres. When I look at land that is maybe a couple hundred acres + at least , then I’m starting to figure out the value differently. Land is valued on a per acre basis once we graduate to sizeable lots. In most cases across the country land has to be a lot bigger than that to be valued by the per acre standard. The only place you can still do this in NYS would be in the northern most areas of the state. You can go to some places in St.Lawrence County and find some pretty big chunks of land at some really crazy per acre prices.  Just keep in mind when you’re talking about a few hundred bucks/acre you’re still talking about some substantial dollars for that place. If you can do a deal like that then I’m happy for you. Buying a big piece is fun stuff and knocking one off for a few hundred bucks and acre is a neat thing to do.

So this isn’t a real sexy topic but it is relevant especially if you’re getting some of that uninformed advice from family or friends who don’t know what they’re talking about ! Always better to be armed . I’ve got so many topics to discuss and have them all written out for the weeks ahead. If you’ve been visiting here please accept my hearty thanks for taking the time to stop by. I always like comments and suggestions of anything I’ve written or a topic you would like to discuss. On Monday 5/5 I’m going to write about buying land with family and/or friends. I’ve seen everything this scenario can present and seen them all 100x over. If you have ANY thoughts of buying with partners you do not want to miss this one. I’m diving in and telling all that needs to be known and what usually happens so be sure to tune in on Monday for this one.  Please let me know what you’re thinking and please SIGN UP & SHARE this ! Thanks again.     mj

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