How Much Does an Acre of Land Cost?
If you want to invest in real estate, specifically a parcel of land, there are prior considerations you should take concerning your budget and the knowledge of the cost per acre. You also need to figure out the size and type of the land and other costs you may incur. There can be overpriced land, and therefore you need to be educated on the average cost before purchase. Different location, size, and type of land will determine the cost per acre of the land in the United States.
How much is an acre?
- Location is key with real estate. With that being said, an acre of land can cost as little as a few dollars to as much as a few million dollars. The pricing is very hard to pinpoint, unless you know exactly where you want to search. Mentioned below are factors and land estimates to consider.
- Farmlands can have an average cost between $5,000 to $8,000 per acre. There can be cheaper land in some locations with an average cost of around $1,000-$5,000 per acre. These are areas that have no timber or structures. The geographical location is going to greatly influence the overall price per acre.
- Land with timber may vary according to the age of the timber. This will cost about $3,000 per acre.
- Land appropriate for commercial building constructions may be selling at $10,000 an acre or even more depending on the location.
- According to this HouseRepairTalk.com forum thread, users have stated that an acre of land in Nebraska can cost $8,000 per acre while an acre in Texas can cost upwards of $6,000.
- The website LandWatch.com is a great classified website that allows you to browse state and International properties. On this website, you can search by city, the amount of acres, the prices you’re willing to pay and more. Since acreage pricing is going to vary, this is a great resource to use.
The prices below are acreage prices by state. Remember, this is an average. This is based on farmland only via an USDA land value report. Take this information as a grain of salt because you will find that all land spread across the United States within these states will vary a lot.
Price Avg per Acre
Factors that influence the price:
- Location: We all know that location is key in terms of real estate. Land located in a high crime area will cost a lot less than land in an area high in demand such as Hawaii.
- Size: Generally, the more acres you purchase, the more you can save. This isn’t always the case, though. Again, this is going to widely depend on where the acreage is going to be located.
- Type: There are a few different types of land available. Popular types can include hunting, timberland, waterfront, farms, home sites and international. Each type can play a wide role in the pricing.
What is going to be included?
- When you buy land, the timbers, structures, and other developments are included.
- Included in the overall price are recording deeds, mapping, regulatory permits, and other various paperwork needed in the state from which you are purchasing. However, this depends on the seller and other the buyer-seller agreements.
What are the extra costs?
- Property tax is one of the extra costs to consider.
- A surveying cost may be included in the price or sometimes the buyer will have to add this as an extra cost.
- Make sure you consider the cost of developing the land.
- Building a home will obviously be an additional cost, but remember that all cities will more than likely require permits and approval before you build the home.
How can I save money?
- The best way to save money on land purchases is to consider many realtors for price comparisons. Don’t forget that you can negotiate on the price. Almost all real estate transactions never sell for full price.
- Try to look for land types where you can save money even if you will still incur extra cost for the land developments and facilities. Usually, developed areas are priced too high, and when you compare the amount you will spend in improving the land, you will find that you can get more savings by simply buying the already developed land.
- Make lists of the possible expenses you may have and make comparisons; ask someone to help you figure out the best buy.
- Check local tax assessor records to see what land has sold for in the local area. By doing this, it will allow you to get the best potential deal possible. It’s silly to offer $10,000 on a piece of land, when a neighboring property sold for $5,000 a few months ago.