How much is that acreage for sale worth?
Many individuals and businesses seeking to make an investment will do so by purchasing a property with a large acreage for sale in Southwest Missouri. This might be for farming use, or it might just be for aesthetics and privacy. Either way, we at Southwest Missouri Realty want to see you get the most for your money. So, how do you evaluate the worth of acreage? Take a look.
Usage and Development of Acreage for Sale
When evaluating land that will be used for farming, you must first determine how much of the land can be used for a farming purpose rather than simple aesthetics. This means that you must calculate the amount of land that has been developed versus the amount of land left to be developed.
When you decide to purchase farmland, you will likely make a visit to your county agricultural extension office, as overseen by the United States Department of Agriculture. Here, an agent can provide you with detailed information on soil types and production value of the property you are assessing. A rural appraiser should also be consulted.
Once you know how much land is in use or that can be used for growing crops, you can determine the value of each acre through a formula that estimates the return on the investment made. Usually, this looks something like “price per acre/annual interest rate.” The formula may differ from state to state, but this is why it is important to consult a professional in Missouri on acreage for sale in the area.
Using Online Resources
If you want a quick glance at a possible evaluation of acreage for sale without contacting all of the professionals just yet, there are online tools that you can use to get the job done. Many online calculators ask for the zip code or city and state to produce an average price per acre in that area. It might look something like this: $1,234/acre and then break down the average slope and percentage for different crop types. This doesn’t tend to be a reliable tool when making a final decision on a property investment, but it can give you an idea before you get in touch with an appraiser.
For more information on acreage for sale in Missouri or properties currently up for grabs through our team at Southwest Missouri Realty, contact us today; or visit our main website. We are always happy to help.