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Selling Family Hill Country Property - Need Advice Please

3,721 Views | 24 Replies | Last: 6 yr ago by Good Bull Jones 17
OldArmy72
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OldArmy72
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AG
I apologize for the poor posting - I'm a newbie at this too.
I've been tasked by my siblings with selling our family estate ( 100 acres) in the hill country.
Eighteen months ago I had a local certified appraiser perform an appraisal on the property - the total of which pretty closely matched the county tax appraisal. So, we felt that would be a good number to use as a starting asking price.
I contacted a local realtor to discuss the possibility of him listing the property for us. After spending an hour and a half looking over the property he inquires what our asking price will be and when I give him the answer and the reasoning behind it, he immediately tells me he needs to do his own analysis and, by the way, we should hire his buddy to perform a land survey asap.
Well the realtor took two days to perform his price analysis and he says our opening asking price should be 8% lower than the appraisal and that we should realistically expect to sell for 8% less than his suggested opening price - a 16% deduction - in value in addition to realtor fees, survey fees, and other closing costs.
This is my first real estate transaction, and I'm surprised that the realtor is stating that he needs to be the one to set the asking price, especially when it is so different from the independent appraisal and the tax appraisal.
Is any of this normal or am I justified in being very suspicious of this realtor's motives?
I would appreciate any advice and suggestions.
aggiemike89
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AG
What comparably sold properties did the realtor use? Compare those with what the appraiser used.
Rice and Fries
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Tell him that you paid $XX amount to have the property professionally appraised. Hand him the land comps used in the appraisal. And that is what the value is determined and what you want to list the property for sale at. I would think that doing a land survey doesnt have much emphasis unless something significant has changed with the property in regards to the metes and bounds. A potential buyer's lender might require one.


At the end of the day, remember that the realtor works for YOU. Not the other way around. Don't let them bully you or try to take advantage of you. Go get a second opinion from another realtor and see what they say. Im sure someone here can recommend a reputable Hill County Realtor who'll steer you straight and not try to rip you off.

Another thing you can try with this realtor is to see how receptive he is to taking a 16% pay cut
DallasAggie0
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Selling a property below its assessed value shouldn't happen except in abnormal circumstances
AggiePlaya
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AG
DallasAggie0 said:

Selling a property below its assessed value shouldn't happen except in abnormal circumstances
THIS.

If anything you can always list at the higher price to start with and drop later if the market isn't receptive, so I'm shocked the realtor wouldn't go that route and based on that I would interview another reputable realtor in your area.

I will however point out that an 18 month old appraisal should not be relied upon, because the market could have dipped or risen significantly in the past 6 months. That's why appraisers go look at recent comps. So maybe there was a market dip, and a more recent appraisal makes sense
AggieAces06
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I agree with this. Ask another realtor to come out and take a look. Tell them to bring their comps ahead of time. This way they have numbers prepared without you telling them anything.
AggieAces06
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Also, make sure you use a land agent if possible.
Jwl06
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Is it ranch/hunting land? If so, where is it located?
ontheedge
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You didn't state the location but I will put this out there. Give this Aggie owned and operated company a call. Been in business a long time.

Anders Group
dpryor
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The agent should not be telling you the price to list your property. He has a fiduciary obligation to represent you and your interests in the transaction, but he does not make decisions for you. He can advise you as to what he believes the property will sell for based on current market conditions, but you decide where to set the price. My suspicion is that he is trying to get you to set a price below market value to get the property to move quickly. Acreage tends to have a longer sales cycle, which means a longer time for the agent to collect commissions. It is probably worth it to get a handful of appraisals as acreage values tend to also be somewhat subjective based on many factors to consider. If you are not in a hurry to move the property, set the price on the high end. You can always negotiate down if you need to.
dallasiteinsa02
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Don't worry about the survey unless you think that the acreage is way off. The standard Texas form takes care of it by updating sales price based upon the survey at a later point up to a point.

Where is the property? Have you reached out to the neighboring tracts to see if they would like to by it. That happens all the time with no realtor involved.
Bitter Old Man
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AG
I would definitely talk to some other realtors before you hire anyone.

I'm in the Farm/Ranch business, but not a broker. If you need some recommendations for good hill country realtors, email me at atxbanker at gmail.com
aggie appraiser
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I would hire the appraiser to update the appraisal with current comparables, maybe without comp photos to save some money, and have a sit down with your realtor and the appraiser and see who backs down. Let them defend their opinions with an expert across the desk. There is a reason that you pay one guy to do it and the other guy does it for free.

I think your appraiser would cut you a price break on a second appraisal. Ask him to update it without going out and taking comp photos. Since you aren't getting a loan with the appraisal, he doesn't have to follow all the same requirements of a regular assignment. You can streamline the order so its easy for him and he can discount the fee. He's already been on your property, so he knows what he's dealing with.

Ignatius_of_Silesia
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Jwl06 said:

Is it ranch/hunting land? If so, where is it located?


I would like to know as well. Let's get a deal done without this realtor and get you all the cash.
always gig em
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Quote:

he immediately tells me he needs to do his own analysis and, by the way, we should hire his buddy to perform a land survey asap.

alarms went off right here
always gig em
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Bitter Old Man said:

I would definitely talk to some other realtors before you hire anyone.

I'm in the Farm/Ranch business, but not a broker. If you need some recommendations for good hill country realtors, email me at atxbanker at gmail.com

this guy
normaleagle05
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always gig em said:

Quote:

he immediately tells me he needs to do his own analysis and, by the way, we should hire his buddy to perform a land survey asap.

alarms went off right here

This is absolutely an alarm bell moment regarding the ethical stance of any real estate professional and his "buddy".

That said, as an RPLS, I'll caution you on a couple of points regarding rural "family land".

Many rural long time family tracts that I've dealt with have significant title problems that will be revealed to the family heirs only when a purchaser's lender requires a survey. And these can be deal killers when revealed. Often, the survey is done by the cheapest RPLS the buyer can find to do the work after the seller decides to push the survey costs onto the buyer. Remember that you and your family members will likely be delivering a warranty of title based on the survey. Having control of choice over whom is performing that survey is not dissimilar from choosing your seller's agent. There are good ones, and there are bad ones. Sure, the title company may become financially liable for any issues that arise later, but you should consider setting your potential buyer's mind at ease with a reputable survey on the front end.

Title issues aren't the only concern you should consider. Many older metes and bounds descriptions lack the accuracy necessary to assess the real value of a property. I've surveyed a "209 acre" tract for the seller that ended up being 239 acres. This was one HAPPY client (his contract was price/acre)! Didn't affect my survey that he got more money in the deal, the facts were the facts. Old family land, often with an old (1870's or so) description can be "more or less", like the description says. What might that be worth to you? Your family's acquisition date of the property may or may not be reflective of when the legal description was written. Folks were less concerned with quantity when land cost $1.00 an acre.

Rural property, especially, can have a lot of issues. If you've never dealt with it you should consider the value of hiring appropriate professionals.

I don't work in the Hill Country, usually, but I'd be happy to recommend extraordinarily qualified surveyors who do, should you consider a pre-emptive boundary assesment.
BT1395
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Where is the property? I'd be interested in buying if near where I'm looking...
OldArmy72
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Thank you all very much for your very fine advice.
One of my siblings considered the realtor's actions to be very professional and helpful. The other sibling agreed with me that he didn't think the realtors advice was in our best interest. The advice I received on this forum has convinced me that I need to get a second or third opinion from other realtors in the area.
BTW the land is located less than ten miles from Fredericksburg and has two spring-fed creeks that have never gone dry even during the most severe droughts in our 105 year history on the ranch. The land is situated in a large valley with very fertile soil - so my grandfather cleared it and farmed it. It is approximately 60 % open (fallow fields) with the two creeks and two hills on opposite sides surrounded by big live oak and cedar on the other 40%. The land has end-of the road privacy with access passing through two other ranches via deeded easement (dirt road). There are deer and wild turkey - but the bucks are typically in-bred eight point, 14 to 15 inch spread, with the occasional better buck passing through - I killed a small frame 6x6 there two years ago. Haven't had much problems with hogs. Most of the neighbors are old-school Germans who enjoy making their own deer sausage.
Thanks again for your help and interest.
tamutaylor12
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If you haven't already, you might talk to the old Germans about adding on. They might like the idea of not having new neighbors.
Houstonag
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Realtors are after one thing. Their quick commission. They want it easy.

If it is good property then sell it yourself. Easy to design a flyer with pics, specs etc and put up a sign.

I have done many times.
SteveBott
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While I agree that he 'could' sell it on his own. If he does not have your experience in these transactions it may backfire. And this is a family deal and doubt the OP wants to risk legal issues with family.

A hundred acres, not improved much, 10-15k an acres? Serious money. I'd find a listing agent by interviewing 2-3, negotiating a 1% or less listing. Add 1-2% buyer agent commission and sit back six months.

The market will decide in that time frame.

Long Live Sully
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I live in this area and can recommend some good Ags in real estate if that would help you.
Our-turn-to-rule
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I am in Kerrville area and looking into purchasing land. Let me know if you would like to trade some information and see what the interest may be.
Good Bull Jones 17
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I wish I was in the market and had the money for that kind of a property, it sounds like a dream.
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