Large Acreage for Sale
If you are a land speculator or investor looking to purchase property, and you find large acreage for sale, you have arrived at the starting point for excellent profitability. The “Law of Per-Acre Pricing” needs to be thoroughly studied and understood. Basically this law states that the larger a tract of land is, the lower the per-acre price will be—and the smaller a tract of land is, the higher the per-acre price will be. Therefore large tracts of land will offer the best opportunity to acquire land at the lowest per-acre price.
Let’s review an example of how this might work.
A rancher sells 20,000 acres to a land speculator for $100 per acre. The land speculator sells four 5,000-acre tracts to other buyers for $150 per acre. One of these 5,000 acre buyers sells off 1,920 acres to another speculator for $200 per acre. This new owner then parcels the 1,920 acres into three sections of 640 acres each for sale at $300 per acre. One of these buyers then subdivides his 640 acres into sixteen 40-acre tracts for resale at $750 per acre.
As can be seen above, the 40 acres for $750 per acre is the very same 40 acres that was part of the original 20,000 acres that sold for only $100 per acre. No improvements were made to the 40-acre tract, and it is still the very same unimproved land it was when it was part of the 20,000 acres. The only difference is that it is now being sold as 40 acres, not 20,000 acres. Thus, the “Law of Per-Acre Pricing” is in full effect.
Another example would be the Alaska Purchase. The United States acquired these 375 million acres for a little over two cents per acre in 1867. Now, immediately after this purchase, does anyone believe that the United States government would have resold a 40-acre lot to a homesteader for 80 cents, or two cents per acre?So if a person can afford it, it is always better to acquire large acreage for sale as opposed to acquiring small acreage for sale.
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