# Selling a homestead?



## Childwanderer (Jul 30, 2018)

Is there a market for a small functioning-but-in-progress homestead in Texas? We are starting to steep the idea of relocating, but the improvements on our property are probably not the kind that appeal to general resident shoppers.


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## MatthewsHomestead (Jul 30, 2018)

If I were moving to Texas I would be interested! It may take longer to sell since you have a specific type of buyer to find..... My husband and I are spiralling thoughts of watching for a foreclosure on a ranch or stables...... So selling will totally depend on who and how often buyers are looking. With the homestead movement being strong as it is you may not have to wait long. Just my humble thoughts. I'm no realtor......


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## greybeard (Jul 30, 2018)

Childwanderer said:


> Is there a market for a small functioning-but-in-progress homestead in Texas? We are starting to steep the idea of relocating, but the improvements on our property are probably not the kind that appeal to general resident shoppers.


From the mouth of my realtor:
In East Texas, especially near a city,  small (less than 50-100 acres) tracts sell more quickly and for a higher price/acre than larger tracts.
Why?
There aren't many available. You can find 100-1000 ac tracts for sale all over East Texas, but finding a small place is much more difficult. 
If you get down into and below the 5 acre parcels tho, they're a bit harder to sell. Too big for most homeowners and too small for most 'hobby farmers'. 
In addition, most counties require a minimum  acreage to qualify for ag exemptions. (In my county, that minimum is 20 ac)


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## Latestarter (Jul 31, 2018)

I found my present place here through Zillow and more specifically, Lands of America https://www.landsoftexas.com/  I was looking for a smallish hobby farm of 20+ acres. This place is 19.8. You might consider placing it for sale in one of those two places. Once I had found several properties I was interested in looking at, I contacted a local REA and set up to come here and look at them.


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## MatthewsHomestead (Jul 31, 2018)

greybeard said:


> From the mouth of my realtor:
> In East Texas, especially near a city,  small (less than 50-100 acres) tracts sell more quickly and for a higher price/acre than larger tracts.
> Why?
> There aren't many available. You can find 100-1000 ac tracts for sale all over East Texas, but finding a small place is much more difficult.
> ...





Latestarter said:


> I found my present place here through Zillow and more specifically, Lands of America https://www.landsoftexas.com/  I was looking for a smallish hobby farm of 20+ acres. This place is 19.8. You might consider placing it for sale in one of those two places. Once I had found several properties I was interested in looking at, I contacted a local REA and set up to come here and look at them.


both great advice!


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## Mike CHS (Jul 31, 2018)

I have heard people talk down Zillow as being inaccurate but we had previously looked at our place and came back after we saw the price drop of 75%.  The listing agency didn't show the drop until several days later and we already had a contract by then.


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## Latestarter (Jul 31, 2018)

Yeah... Zillow is kinda out to lunch with prices. It had my place in CO valued at over 100K less than what I sold it for, and less than what I paid for it. I sold for $253,500 and they now have it valued at $290,508... My place here was valued at ~120K or so if I remember correctly before I bought it. I paid fair market value at 170K. Zillow presently has it worth $139,960 or range of $130-157K. I would guess it would probably be worth about the same as what I paid for it, maybe a bit more.  The nice thing about Zillow is that it does actual list prices for properties for sale, & shows last sold dates and amounts for surrounding properties, so even if they have the one you're interested in valued wrong, you can pretty much figure it out.


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## greybeard (Jul 31, 2018)

Zillow doesn't have mine listed in any way, nor does Trulia but Redfin does. It's listed 'off market' but with an appraisal about $100k over the county's most recent market value appraisal.


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## Bruce (Aug 2, 2018)

And how long ago was the last county appraisal?


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## greybeard (Aug 2, 2018)

For this property, it was late June or early July 2018, and the cty appraisal district  actually increased it over their previous market value appraisal of it by $80K.


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## Bruce (Aug 2, 2018)

That seems pretty recent  I don't even know when there was last an appraisal in our old neighborhood. The house is listed the same now as it was in 2007. They are supposed to do reappraisals where we live now last year and this year. Haven't seen anyone yet.


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## Mike CHS (Aug 2, 2018)

We asked the county to do a new appraisal last year since our taxes the first two years were based on the land value only the year we bought it which was 5 years ago.  They supposedly do not penalize but I know a couple of people who spent major dollars for a period of several years and the county acted like they were trying to hide it.  People here are super friendly and will bend over backwards for you but that doesn't apply to the tax people.


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## Bruce (Aug 2, 2018)

Yeah the tax people have hearts of stone. Miss one payment by one day in 25 years and there is a huge penalty.


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## greybeard (Aug 2, 2018)

Bruce said:


> That seems pretty recent  I don't even know when there was last an appraisal in our old neighborhood. The house is listed the same now as it was in 2007. They are supposed to do reappraisals where we live now last year and this year. Haven't seen anyone yet.



They now do most of the appraisals here by air or sat images. The only exception I've heard of is a drive by/feet on the ground inspection to make sure you are indeed producing an ag product (IF you are ag exempt) 

The only reason they reappraised market value on my place is because I went up and discussed it with them, as I knew something was amiss in regards to the both total and per acre market value of my place in comparison to the per acre market value of the adjacent 24 acres in my brother's estate. Had discussed it with wife, and as neither of us believe in free rides but understood there was a chance stirring the pot up  could adversely affect our taxes, we needed to get to the bottom of it.

Started with the girl at the counter, explaining that I thought maybe they had once again got the 4 (mine, my brother's, my sister's and the parcel I sold in 2015) property id #s mixed up--name to number, but the honcho in her office overheard the conversation and honcho told girl to send me in there, she would get to the bottom of the disparity. 

It came down to the fact that there are 2 different formulas. One for market value and another for taxes and they are not reflective of each other. It's complicated and seems strange but a larger tract is less desirable on the current market than a smaller tract, thus the larger tract ends up with a smaller per acre valuation. 

But, when I asked 'How can a 41.4 ac place with a 9 year old home, water well, waste water treatment plant, fully fenced, cross fenced, cattle handling facility, a shop and barn, all of it planted in and producing grass and beef, with an all weather road in everything except a Harvey flood be valued at less per/ac value than 24 acres with no improvements at all and floods every time any heavy rain falls and is basically worthless to anyone except a few hunters or 4wheeler aficionados" she sat back and shook her head, said "You're right, something is wrong" then went to typing and looking at records. "Ahh..I see it now". 

Back when, this place was 124 acres total. It was sub divided up into 3 equal parcels, each belonging to different members of the family. I bought a 2nd part of one of them at one time, then sold it a few years later. "It seems" she said "for whatever reason, we have had you , _for market valuation only_, as the owner of all 124 acres since 2004" (that was the year I bought 1/2 this 41 acre tract from my father) "and since 124 acres being  5 times larger than your bother's place, it has a much smaller per ac market value, and thus, a much smaller total market valuation". So, she calculated the 'correct' market valuation and I signed off on it after she also produced a document which she signed affirming my taxes wouldn't change (I'm locked in at 2016 appraisal for taxes anyway, as I'm over 65 and homesteaded)


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## Bruce (Aug 3, 2018)

Well that is all good. Fixed for whenever the property is sold and doesn't cost you anything but some time.


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