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Thread: What's it worth?

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    Senior Member Quattromike's Avatar
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    What's it worth?

    Does anyone have a formula for valuing property? E.g. You take the acreage multiply by so much per acre take the house if there is one and take the buildings and condition of such and multi ply so much per square foot. Location must come in to it a bit plus acces from main drag and hope value and the such or is it as simple as so much per acre and the rest is irrelevant ?

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    Re: What's it worth?

    The usual way is to look at similar properties in the same area and do exactly what you are suggesting. Do a search of the for sale advertisements and I think there are sites which will tell you the selling price.

    Sometimes the rent paid can give you an idea for rented property, multiplied by a number called "years purchase". A valuation is just an opinion qualified by experience. Adjust for factors such as amenity, view, sportings, local schools, shops, etc. Location doesn't just come into it but is a major factor.

    The value of a property is that price agreed between a willing seller and a willing buyer and will vary. Is it for insurance? For mortgage? At auction? On forced sale? Vacant possession or a sitting tenant? Nice farm house or shabby hovel? Etc.

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    Senior Member Quattromike's Avatar
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    Re: What's it worth?

    Been looking at a little place for myself locally, one has double the acres the other the house and buildings are in original nice condition but a bit off the main road passing through another farm close, the others buildings are not good should really be knocked down and the house was done up int he seventies needin done again but is right off the main road. Price for each is similar. I would like the extra land but don't want the hassle of all the work needin done

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    Re: What's it worth?

    basic calculations before splitting to bigger value

    before anyone says you have to allow a little flexibility in the figures for local factors

    land 6500 acre

    house new builds 1000 p/sq ft not including land

    barns steel 6.0 / 8.25 sq ft erected

    infrastructure electric, drains, water

    hope value ? or conversion value ?

    get to a value then - 26% for outright buy as one, then go from there usually upwards , if its the business your buying the multples are between 3 and 15 times profit

    might help a little

    or ring the agents competitor ask him how he valued it as it will be less and have a local guide

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    Re: What's it worth?

    The value of a property is that price agreed between a willing seller and a willing buyer and will end up with both parties mildly dis-satisfied

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    Senior Member Quattromike's Avatar
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    Re: What's it worth?

    What about proper stone built barn or byre buildings with slate roofs? Is there a rough value for them.
    I suppose hope value comes into it quite allot, with one property I'd have to sell off part for a plot in order to pay to have the house rebuilt but it would be a better location in the end. But it doesn't sit well having to pay for a house only to knock it down and start again. Would that be mad?

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    Re: What's it worth?

    Quote Originally Posted by Quattromike View Post
    What about proper stone built barn or byre buildings with slate roofs? Is there a rough value for them.
    I suppose hope value comes into it quite allot, with one property I'd have to sell off part for a plot in order to pay to have the house rebuilt but it would be a better location in the end. But it doesn't sit well having to pay for a house only to knock it down and start again. Would that be mad?
    Daft as it seems, building a modest new build house to your specific requirements will probably be cheaper than a major renovation on an old property.

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    Re: What's it worth?

    Quote Originally Posted by matbrojoe View Post
    Daft as it seems, building a modest new build house to your specific requirements will probably be cheaper than a major renovation on an old property.
    20% VAT on a rebuild. Zero rated on new build I understand.

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    Re: What's it worth?

    Quote Originally Posted by Quattromike View Post
    Been looking at a little place for myself locally, one has double the acres the other the house and buildings are in original nice condition but a bit off the main road passing through another farm close, the others buildings are not good should really be knocked down and the house was done up int he seventies needin done again but is right off the main road. Price for each is similar. I would like the extra land but don't want the hassle of all the work needin done
    at least buildings/renovations can be done over time....but buying adjacent land to the smaller holding is likely to never happen perhaps .....the barns may be wrecks...but when converting this is not neccesarily a drawback ....near to the road means better access to elec/water services if additional is needed.

    purely my opinion and on the basis of your post,if it were me, i'd buy the 'wreck'...and not knock anything down to hastily

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    Re: What's it worth?

    don't knock anything down built it has planning permission ! knocked down it does not, you need a specialist to tell you the planning laws today , ( and pay a lot for the advice ) free advice is only opinion

    you must rebuild a knocked down building within time limits to the same spec no better or worse unless you change the permission

    the comment about two parties agreeing selling price is not very relevant nowadays as many property's have a first charges owner namely bank not the person selling it ! or an estate being sold will have many wanting different outcomes finding what the selling party actually want to achieve is the key in property its not always c
    cash ?

    as is most peoples thoughts , cash generally means 40% to many people if splitting and not selling a business


    why not ask question to seller

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    Re: What's it worth?

    Quote Originally Posted by tcf View Post
    basic calculations before splitting to bigger value

    before anyone says you have to allow a little flexibility in the figures for local factors

    land 6500 acre

    house new builds 1000 p/sq ft not including land

    barns steel 6.0 / 8.25 sq ft erected

    infrastructure electric, drains, water

    hope value ? or conversion value ?

    get to a value then - 26% for outright buy as one, then go from there usually upwards , if its the business your buying the multples are between 3 and 15 times profit

    might help a little

    or ring the agents competitor ask him how he valued it as it will be less and have a local guide
    Don't you mean 1000 per square meter, not square foot for new build house ?

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    Senior Member Quattromike's Avatar
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    Re: What's it worth?

    Yesterday I was all set on the smaller craft with well turned out house buildings but today my mind has turned to the other with bigger rougher buildings and more acreage an more work needed to bring them up to scratch. Decisions decisions. Both are retired couples moving away to town houses so cash not really an option I think.

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    Re: What's it worth?

    I couldn't see the actual sizes of the properties (sorry if I missed it) but earning power might influence your decision. When we bought we could have everything from 3 acres & lovely house to 125 acres, in need of fert and fencing with rough buildings at the same price. Bought the latter and concentrated on improving the land. Over time the farm income has easily covered improving the house.

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