jflournoy
Active Member
Lot of variables, especially when you start adding buildings into the mix. Buildings can actually make the *land* worth less per acre, but that is a longer discussion. But for *raw land* in southern Iowa with *no* negatives like access easements or other unusual encumbrances, no dirt road only access, no major noticeable erosion, no wrp or conservation easements, and with rural water and electric available at the road, I'd say a good range for real market sale value *currently* is probably in the $4,400-$5,000/acre *range* generally speaking. That is a decent sized range, but not all southern Iowa counties have the same outsized trophy deer reputation or carry quite the same cachet to buyers, and that affects perceived land value, and therefore, sale value. Yes, there are giant bucks killed in every southern Iowa county every year, but Wapello County does not have the same reputation as Monroe County next door. Ringgold County does not have the same reputation as Decatur County next door. The larger the acreage, the more the price per acre has to moderate downward because of a smaller pool of financially eligible buyers. If you had asked me about an 80 acre property, my range would be a little higher per acre. Also, when you say a "good neighborhood" that's a very subjective term and means different things to different people, so it is hard to put a number on what additional value that adds. It might add $500/acre. Maybe more, if it's a really special property. A good neighborhood in Lucas County isn't going to mean the same thing as a good neighborhood in Decatur County. I would say be wary of land listings that make claims of being in a "managed neighborhood" or that this type of property "rarely comes to market". Occasionally, the former may be true, but the latter is usually just a pressure "FOMO (Fear of Missing Out)" sales technique. Due diligence is required on the part of the buyer, and frequently that is easier said than done, especially if it's a strong sellers market.
I will also make a caveat that any time you're talking about southern Iowa land that is within 45 minutes or less of a major metro area, the price per acre is automatically going to go up. The most remote, "so-so" land in Warren County is likely to sell for more per acre than top-quality ground in Lucas County, simply because of proximity to Des Moines. All else being equal, land in northern Clarke County is going to sell higher per acre than land in southern Clarke County. And conversely, the *further away* the land is from "civilization", that can definitely have a negative value drag in the other direction also.
Do you mind mentioning what county those two properties were listed in, and what kind of ground was it? Inventory for sale is very low right now across most of southern Iowa and therefore there aren't a lot of recent sale comps in many areas. Sometimes coming up with a solid suggestion for list price and expectation of sale price can be a little tough. In my opinion, using the ISU land survey would be something that I would consider to be a *very* general starting point only. I don't know exactly how they compile that data, but I assume it's an average of all the rural/ag land sales in that county. The average is going to be low if you're trying to price a property that is primarily tillable, and it's going to be high if you're trying to price a property that is primarily hunting land or hunting with some income. I'd very much prefer to consult even 6-12 month old sales comps of similar land than to think the land survey "average" would be very close to the actual market sale value at any given time.
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