easements, what is the going rate?

[one more cast]

I have been approached to sell 2-3 acres of land plus an easement for a Raw water project.I have no idea what a fair price would be for the 30' easement. Here is a diagram of the land layout w/red pipeline. The red square on the left is what they want to buy.The whole piece including what they want is 10 acres. This deal would also keep the trucks from loading directly across the road from my house,a pond and free spring water to my house. Any ideas?<br />

 

[KRS]

Re: easements, what is the going rate?

The "going rate" will be defined by sales of comparable property in the last 6 months- 1 year.<br /><br />It may be a good question for a realtor, or you could research it by logging on to your county assessor's office website (if they have a good one) and begin looking up property that is similar, then the last sales price should be on that site or you can ask the county for the affidavit of value from when it sold, and that will have the sales price on it.<br /><br />So, to sum it, it's worth whatever land is worth, I wouldn't try to value it any other way... just as land.<br /><br />The drawing makes it look like the easment will be close to the house +- 1 acre, is that the case?<br /><br />Is there any chance that since the property will now become included in the raw water supply, that the city could dictate what you can/can't do on that property in the future?

 

[one more cast]

Re: easements, what is the going rate?

"Is there any chance that since the property will now become included in the raw water supply, that the city could dictate what you can/can't do on that property in the future?"<br /><br /> Good question but I don't believe so. It is raw water that will be piped underground across my land then trucked to a processing plant and the water source is a mile away. I have a pretty good idea what the land is worth but what I need to know is what the easement is worth.

 

[dolluper]

Re: easements, what is the going rate?

Yeah OMC watch yourself close on this one Easements are for 100's of years,they can affect what you can do with your property,ex,,,building anything so far away from easement in feet ,without a letter of torrence from the owner of the easement if you sell it,becomes unusealbe land ,property value could drop Do you know any good real estate lawyers ,So you can cover yourself and not lose out .In other words the easement is worth alot

 

[18rabbit]

Re: easements, what is the going rate?

Originally posted by One More Cast:<br /> ... Any ideas?

Can’t see you image, but:<br /><br />Get it in writing…everything! Everything they told you, including that none of their trucks will routed on the road in front of your house. All of it. If they wouldn’t put every word of what they said in a written contract, be aware of what else might be a warm feel-good. Also include in the contract any restrictions you want on their use of the land you will sell. Again, if they won’t agree to it, you gotta start wondering what the real use will be in total.<br /><br />The other thing that comes to mind is : sell it! If you don’t, and you a problem for a water project, you will loose it at probably lower than market rate, maybe even for $1/acre, or less if you aren’t currently using the land. It is happening!<br /> [/quote]

 

[roscoe]

Re: easements, what is the going rate?

Easement is worth 1.5 times the value of the land, around here.<br /><br />Since it will hack up the land and its future use/sale/improvement, they have to pay for that.<br /><br />Personally, I'd make them route the water line around the edge of the property. And then they would have to allow driveways to be built over the line. If they don't like it, let them go somewhere else.<br /><br />There are also potential problems with the pond to concider, its use, maintenance, etc.<br /><br /><br />lawyer time.

 

[Reel Poor]

Re: easements, what is the going rate?

IMHO I would try dealing with them on a lease instead of a purchase. Could mean long term monthly or annual income. With a lease you remain the sole owner of the property. A lease may also be a benefit for you as property values increase in your area. <br /><br />Definately consult a property lawer.<br /><br />There is a lot of questions to consider here:<br />Why this particular piece of land?<br />How long will they need the water?<br />How will this affect my property value?<br />Will this affect surronding property value?<br />ect ect<br /><br />Ill also say an easement is worth more than the value of the land, as an easement will split/limit useable portions of ground.

 

[neumanns]

Re: easements, what is the going rate?

You are free to write it however you want. More important is how the easment is wrote than what ya get for it.<br /><br />If ya grant them an easment, they can do as they see fit on that easment. If ya tell them the easment is for one water main and it's upkeep that's all they can do.<br /><br />I would be specific otherwise they can for example grant the local fourwheeler club permission to create a trail on there easment.<br /><br />Rather than granting a permanat recorded easment effectivly making it city property except in ownership you could lease them easment right's for the life of "that pipline" for a set amount per year with an escvalating fee for appriciation or to be renegotiated every 5-10 years with the value not to exceed 100% of current lease.<br /><br />Or...You could also look on the city's property log and perhaps trade them for a piece they currently own but see no use for. I have seen some nice deals procureed under such cercumstances.<br /><br />If ya do sell or trade it can also be wrote that you retain the right to have the property revert to you for a said amount when they are done with it.<br /><br />They will agree to any reasonable fee, and most restriction so long as it can fit there plan's. But if you set an unreasonable fee then you will become vary familiar with eminant domain.<br /><br />(EDIT)... As far amount's appraised value is for a willing seller and an able buyer. What they are requesting should bring a premium both on lease but especially on sale. I would think in the range of half again what comperable's are worth if not more. Why...it's not you that wants a truck loading facility next to the house it's them.

 

[one more cast]

Re: easements, what is the going rate?

Heres the whole story. A guy from PA owns the farmland across the road from my house. He is trying to start a bulk water business with the loading station across the road from me. 20-40 tankers a day. The town is fighting it partly because of the truck traffic on a residential zoned road that is highly used by snowmobiles and ATVs. If he goes across my property then he can put his loading station on a light industrial zoned county road and the liability burden will be off the town. The wells and 1 mile of pipeline are already in place. I will be sure to look at everything and hire an attorney.<br /> Thanks for all the replys. Alot there I haven't even thought of.

 

[neumanns]

Re: easements, what is the going rate?

Sell the loading area for a handsome amount to relieve any liability from that operation.<br /><br />Have them pay a lump sum for the installation of the pipline and return the land to it's natural state including revegitation. Then lease the pipline easment to them for $10 a Truckload...Sure wish I had 20 trucks a day rolling past my place!<br /><br />This way he can defray the inital cost...He won't like the $10 a load but if you stick to your gun's he will agree as he has already committed to this project. Plus the longer he look's at your offer and you stick to your gun's he will come to the conclusion this is the only way to get the truck's rolling...He need's to turn a profit even if it mean's long term expense.<br /><br />Sound's like you may have been in the right place at the right time on this one.

 

[Kenneth Brown]

Re: easements, what is the going rate?

From someone that just signed easements on a 40 inche gas pipeline be wary. I fought long and hard, just to end up moneywise were I started. I wanted things done a certain way. They wouldn't agree to it. In the end they are going to bore this line over 8000 feet under my property, never come to the surface. They were going to clear a 320 foot wide path and it was just not agreeable to me. Its now only going to be 60 foot wide. Beleieve that they have the money. There "final" offer was only $6500. After still not agreeing the guy offered 10 grand (the original amount with all of the damages they were going to do) and very little damage or them being on my land. I signed. It was not as much as I had hoped but I was really more interested in preserving my land than the money.

 

[lakelivin]

Re: easements, what is the going rate?

Just curious about this project and an issue for all homeowners in the area. Are you on a city/town water line or do you have a well? If the latter, any concerns about potential long term impact w.r.t. homeowner's well systems and the water table? <br /><br />Sounds like you should do ok on the land; isn't commercial land worth more than residential land? Of course, if you put in sufficient restrictions as to how they can use the land you sell, that might mitigate getting too much of a premiium for the land....<br /><br />Also, what are their other options? e.g., who owns the land on your right? Could they easily make a siimilar deal with that person? If so your bargaining leverage probably goes down. If not, and they don't have many other options, your leverage obviously goes way up.

 

[one more cast]

Re: easements, what is the going rate?

LakeLivin, The water project is all artesian spring feed, no pumps on the whole system. I will tap into the line to supply my house. They have 3 options.<br /> 1. truck the water from across from my house.<br /> 2. Go across my property as above<br /> 3. rerun the pipeline and have the trucks come onto the towns main street (county owned)next to the church via a right of way . very impractical because they would need to put in a 1/2 mile driveway through the woods on a 50' right of way.Maybe could be done.

 

[neumanns]

Re: easements, what is the going rate?

P.S. my last post is kinda tounge in check...Kinda, I would sincerly if possable negotiate the lease on volume rather than simple usage.<br /><br />It's a gamble, less money up front but a lot better potential in the long haul.<br /><br />I honestly believe ya have a shot as this is a individual or small company as opposed to large utility used to negotiating leases. Plus he does sound commited to this as a viable option cause it sounds as if he has tangled with the town and would prefer this option.<br /><br />But that's just my way of thinking.

 

[roscoe]

Re: easements, what is the going rate?

If you work out a lease or volume deal, make sure the lease/payments continue to the new owner, should you sell the property.<br /><br />Now it has become added income/value to the buyer.

 

[Kenneth Brown]

Re: easements, what is the going rate?

Oh heck no Roscoe. Thats like signing over your oil/gas mineral rights. Water rights have started playing a huge part in Texas real estate. My farm is a mile from a small village I guess you would call it, maybe 50 houses. We have comm water there. From there its 6 miles to nearest town, which is about 4000 people. I pushed for water rights to be on my deed when I closed on the property. Big corps are buying water rights and selling the water to west Texas and even further. We have all kinds of watch dog groups popping up to prevent it but it is still happening. It would be a permanet check to him for life. I say keep 'em.

 

[carrotsnapper]

Re: easements, what is the going rate?

O M C, I was searching a piece of property just this week and I saw a 10 foot easement granted to a fiber-optics company plus a box location on the car dealers property. It seems to me that they got $5000. for the easement. I don't know if it was a annual payment or just a one time deal. That was in a prime location in the Provo, Ut area. When I worked for the phone company (retired last August) I was told that a elementary school was offered $6000. per year for a location to place a cell site. Don't know if this helps or not. Mark

 

[roscoe]

Re: easements, what is the going rate?

First off, he is not leasing and water rights.<br />Only the ability to use the land to convey the water.<br /><br />OK Kenneth, let me clarify.<br /><br />He wants the lease payments to continue, to him, the next owner of the property, or a third party, or who ever he wants. That way, if he transfers the land, say to his daughter upon his death, she will continue getting the payments without having to renegotiate a lease.<br /><br />He does not want the terms of the lease to terminate when the property transfers to someone else.<br /><br />And he is negotiating for the right to transfer water over his property, not for the water itself. Kind of hard to collect on a lease if you don't own the land that is leased.

 

[Kenneth Brown]

Re: easements, what is the going rate?

I got ya. Ya, I would set it up so as I can transfer the lease to someone else. I quick-drawed that one. Thats what I get for polishing my gun leather huh.

 

[one more cast]

Re: easements, what is the going rate?

It's not looking good anyway now. The road frontage he wants is only 112' and he needs to stay 50' from each border unless the neighboring land owners sign a waver. Problem is the one neighbor is the guy that came up with the project idea and was to be partners but got in a big pow wow with the guy that owns the new water business and the only way he will sign a waver is if they grease his palms heavily. And they aren't even on speaking terms.