Why is it so hard to get a mortgage on 85 acres??

[BucksCoBernie]

I think land usually has the same commission agreement as a residential home. Commercial commissions tends to be higher than residential. But of course it all comes down to what the owner and the agent agree to before the listing agreement is signed.

Not in rural areas I have experience with in New York and Northern Michigan. Just about always, the standard agreement is for a higher rate on bare land. I have land for sale right now in northern MI and refused to let a realtor handle it. All that I spoke with wanted 10% for land, and 7% for a home.

A few of the reasons are -

#1 land often has to be walked to be shown, whereas a house usually has a driveway, heat, etc. Many realtors don't want to drive a long distance and don't want to get their feet dirty or wet.

#2 land is harder to sell since it's harder to finance. Thus, realtors often ask a higher commission since bare land often sits on the books much longer.

#3 land often has a lower asking price than a home. A home on 1/2 acre might be $200,000, and 100 acres of land might be only $40,000.

I hear ya. I just checked available lots in my area and they appeared to be mostly 6% listings. Each market is unique....and if you can tell me where I can get 100 acres for $40k im all ears haha. a .25 acre lot around here goes for more than $40k in my area.

 

[jdemaris]

....and if you can tell me where I can get 100 acres for $40k im all ears haha. a .25 acre lot around here goes for more than $40k in my area.

I passed up 100 acres of hardwoods last year for $10,000. It was legally landlocked, but in retrospect, I wish I'd of bought it.

I bought 35 acres six months ago just down the road from me. All fully wooded with ash and hard maple. Most very steep with about five acres suitable to build. Paid $18,000 cash for it. Town of Worcester, Otsego County, New York (inbetween the Catskills and Adirondacks).

Five years ago I bought 50 acres of heavy woods with some fields and two large beaver ponds in the town of Worth, Jefferson County, New York for $10,000.

Three years ago I bought 40 acres - half woods, half hay fields for $16,000. All in the town of Worcester, Otsego Co., New York. It adjoins the land my house is on.

Here are a few photos taken from those 40 acres (my back yard).

 

[BucksCoBernie]

....and if you can tell me where I can get 100 acres for $40k im all ears haha. a .25 acre lot around here goes for more than $40k in my area.

I passed up 100 acres of hardwoods last year for $10,000. It was legally landlocked, but in retrospect, I wish I'd of bought it.

I bought 35 acres six months ago just down the road from me. All fully wooded with ash and hard maple. Most very steep with about five acres suitable to build. Paid $18,000 cash for it. Town of Worcester, Otsego County, New York (inbetween the Catskills and Adirondacks).

Five years ago I bought 50 acres of heavy woods with some fields and two large beaver ponds in the town of Worth, Jefferson County, New York for $10,000.

Three years ago I bought 40 acres - half woods, half hay fields for $16,000. All in the town of Worcester, Otsego Co., New York. It adjoins the land my house is on.

Here are a few photos taken from those 40 acres (my back yard).

wow thats awesome. nice pics