Mid Iowa Real Estate, Auctions, & Appraisals

Licensed to sell real estate in Iowa

© 2017-2018 Mid Iowa Real Estate, Auctions, & Appraisals. Information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable, but not guaranteed.

Land Activity

 

Current Land Activity

 

The month of September proved to be a great time for selling farms, with 11 farms successfully sold. Farms were sold in Hardin, Butler, Franklin, and Wright counties. Sale prices ranged from a low of $5500/acre to a high of $9500/acre. Sales per CSR point ranged from a low of about $80/CSR point on lower quality farms, to a high of $112/CSR point on higher quality farms.

 

It would appear that higher quality farms are holding values reasonably well, with the lower quality farms having some downward pressure. All in all, it was a good month, and we thank the sellers and buyers for making it a successful month.

 

Life Estate Auction

 

In August, we held our first ever Life Estate auction. This property was located in Winnebago County, Iowa. In reality, we were not selling the farm, but were selling the income stream from that farm. Basically, the buyer would be guaranteed 2 years income, with the life estate ending at the death of the owner of the life estate. We ended up selling the Life Estate for $40,000, with the buyer being the tenant on the farm. It's kind of an unusual deal, but I really think we will see more of this as our owners get older, are being faced with mounting health care costs, and a farm that they hold a life estate in. If you have any questions, please call or email me.

 

Upcoming Auctions

 

On November 14, 2018, we will be auctioning 500 acres located just north of Parkersburg, Iowa. These are high quality acres with average CSR’s from 88-92. These 500 acres will be split into 4 tracts with combinations of Tracts #1 & #2 and #3 & #4. If you are interested in high quality land, this is an auction you need to be at. We will also be serving a lunch after the auction. Please come and join us.

 

1031 Information

 

I recently attended a 1031 Exchange class. This was an excellent class with a lot of great information. Many people think that the IRS and government dislike this type of transaction. This is not the case, because they actually embrace them, as it does create more income to the government such as recording fees, attorney fees, transfer fees, and taxes. Also, many times the sellers of some of the properties do not do a 1031, just take their cash, and pay the tax. 1031 exchanges are involved in 40-50% of land transactions today, according to the group in attendance.

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