[USER]

Hi everyone. Posting anonymously as this issue has been very embarrassing, shameful and full of regret for my dad so he doesn’t want the world to know. My American friend recommended I post here as this is a community of people who know how to manage money. I am currently managing this issue for him as he is getting too old to do it.

I am not American and neither is my family. None of us have ever lived in the US. Approx 35 years ago my dad got roped into buying a plot of land in Lancaster, California. From the get go this was a terrible idea for so many reasons I know but let’s not dwell on that because he definitely does. He bought it for 340k shared with a family member. The family member pulled out after a while (few months or years). He kept up the repayments until he couldn’t afford it anymore. I don’t know how much he pumped into this thing that was supposedly worth 340k decades ago. When he couldn’t afford the repayments the bank took it back and sold it to the public for cheap (reposessed?). It was being sold at around 80k at that time. My parents decided to buy it back under my name (I know, I know – so many terrible decisions being made and I think they realise this now).

They now own this land which they paid 80k++ for along with taxes every year for decades (apparently the taxes have been 1-2k over the last few years). They have been approached by a real estate agent who wants to offer then $13k for this. Should we take the agent up on her offer and be rid of this thing? If I didn’t need to pay the taxes on it every year i would keep it for sure (my sister suggests keeping it)  as it costs us nothing. But we have had this sitting here for decades and had multiple lowball offers by RE agents for it over the years Someone offered $2k a few years ago – that barely covers the yearly taxes!

We don’t live in the US and know nothing about the US market. None of us have plans to move to the US to use this land. To us, the offer sounds ridiculously low but that might be the going rate. Part of me just wants to be done with this millstone around our necks. Emotionally it has been an awful for my dad. This is not the only investment he has lost money on – he sold a house next door to where he live now that is worth $6m+ and he sold at approx 340-800k (similar price to this worthless piece of land). He also feels the pain of that lost opportunity and so many others.

I am not super financially savy but if it were me, 35 years ago I would have invested into the index fund and just left it there for the next 4 decades. Seeing my parents’ experience with money has left with me a sour taste in moving and selling shares/real estste all the time. And the sad thing is that he kept the only thing that feels totally worthless now.

Does anyone have any suggestions on what I can do next? Recommendations for agents who can sell for me or land valuers? Words of wisdom for my poor dad who really doesn’t need anymore sadness at his age. He just can’t mentally move on from this. He has a OK retirement and enough money so he doesn’t desperately need this money from the sale.

[Starla]

You can look up the approximate value of the land by doing a property tax search. Just google “xxxxx county california real estate taxes” and the county tax page should come up where you can put in the parcel number. The real estate tax page will show you the approximate tax value. You can also look at comparables on zillow.com. This way you can at least see the approximate value of what the land is worth and if the offer is fair.

[Rebecca]

You need to find a realtor that sells land to get a fair appraisal of the land. Talk to a handful to find out the real market value. Based on that information you may want to list it and sell it. I would not take a random offer that is priced too low.

[Jen]

I would go to the county that this property is in (online) and type in the address and see what the county is valuing this property at right now. That should be your first step so that you know what at least the county believes it’s worth.

The market value is usually higher than that, not always, but often it is.

[Mary]

No!!! Or at least, do your due diligence. Find a real estate agent (Not affiliated with the one who made the offer) and ask for an estimate. You can also get an idea from the tax assessment (which is typically lower than the true value). You can also plug the address in Zillow. But there are many “investors” sending cold offer to people like your parents. They offer a fraction of the true value, turn around and sell it for a hefty profit.

[Lynne]

Do you know where it is in Lancaster? We lived near there at Edwards AFB for several years. It’s grown enormously and the location will be key to the value. The place has really built up over the years.

[Judy]

What is the tax valuation? Depending on the state it could be close to value. Look for other realtors to market through as this one is probably low balling and hoping for a bite.

[Fiona]

I would just get shot of it and forget the whole thing. No point agonizing any more. Also, many years ago investing was more complicated than now. I keep kicking g myself for now investing in index funds and then I remember … they didn’t exist for me! lol!

Glad your dad is comfortable financially he can just let it all go and relax!

Proposed: Seeking advice on rural/farm land investment. New to this. Any tips?

[Jen]

Be very careful about people offering to help you with this! Keep your information private and only work with people YOU have sought out to help you.

Good luck!

[Eric]

I think you maybe could sell it, but I wouldn’t take that offer. I have land and get offers sent all the time by land buyer agents and the offers they send are always 10 times less than fair market value.

You could get you own agent and list it and sell it and get out from underneath it and hopefully make much more money.

[Author]

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