Very Cheap Land for Sale
Let’s compare very cheap land for sale with the opposite end of the spectrum, very expensive land for sale. The latest Land Report Magazine (Winter 2011) listed the 10 most expensive rural properties for sale in the United States.
The 10 most expensive rural properties ranged in size from 1,750 acres to 55,700 acres and were priced from $1,000 per acre to $100,000 per acre. Total sales prices were $44 million to $175 million. The properties were mainly located in Wyoming, Montana, Colorado, New Mexico, and West Texas.
Who or what establishes the sales price of 1,750 acres near Jackson, Wyoming at $100,000 per acre, or $175 million? Basically, the sales price is determined by what one multimillionaire or billionaire agrees to pay another multimillionaire or billionaire. In other words, it is a very tenuous, somewhat illusionary, market. These properties are purchased with discretionary funds that can easily dry up during economical recessions. Paying $100,000 per acre for 1,750 acres with the expectation of a quick profit would be exceedingly risky. The price could just as easily sink to $60,000 per acre, resulting in a capital loss of $70 million.
Very cheap land for sale, properties selling for $300 to $400 per acre, very seldom, if ever, decline much in value, as they are already priced at the very bottom of the scale. Furthermore, there is safety in the number of people who would have the interest and the financial means to purchase $300 to $400 per acre land. Conversely, how many people in America would have the interest and the financial means to write a check and pay $175 million for 1,750 acres of rural land?