Price Check Price check on B2910

[JOHNTHOMAS]

Well Happy Easter everyone. Looks like things got pretty interesting here since the original post

With out dragging out a long post here, I'll explain some thoughts that I had. The loan we're looking at would be for about 1/2 the purchase price, and would actually be around 5 yrs or less.

The main idea hear for the price check was to get a feeling for what the equipment is worth. Yes, I know its only worth what I'm willing to pay. Knowing that I will need to purchase that type of equipment at some point means I either buy it from him or someone else. I'm looking at this as its only worth what I'd be willing to buy it for elsewhere...and then factoring in that it can be had for less since it can be rolled in with the property.

Try and roll it in with the property since the interest rate will be lower for home loan vs equipment loan (used equipment) and if you file the long form the interest will be deductible from your taxes.

 

[bp fick]

Don't care for the fact that this hardware, none of it, was stored in a dry barn, but hey that's just me.

Seeing that the farmer/seller would have a pain of a time fussing with listing the tractor, re-locating it to sell, if need be, etc., the advantages are all yours.

If this fella stops and thinks what a pain it would be to go through selling to someone else, and likely not make much more than you would offer, the price to you is going to be right. $9K. and that's my final offer. Seriously, go low, very low.

It's the economy. Plain and simple. Competition from Zero deals on new equipment is stiff. Also, be sure the fella did his maintenance by the book, with good products.

 

[curdy]

Don't care for the fact that this hardware, none of it, was stored in a dry barn, but hey that's just me.

Seeing that the farmer/seller would have a pain of a time fussing with listing the tractor, re-locating it to sell, if need be, etc., the advantages are all yours.

If this fella stops and thinks what a pain it would be to go through selling to someone else, and likely not make much more than you would offer, the price to you is going to be right. $9K. and that's my final offer. Seriously, go low, very low.

It's the economy. Plain and simple. Competition from Zero deals on new equipment is stiff. Also, be sure the fella did his maintenance by the book, with good products.

Yes, I agree that it bugs me too that it wasn't stored inside. Well, I would be it was probably just over the last 2 years. His ex-wife's house is close to the barn. Let's not go there and open up that can of worms.

Anyway, the point is, yes, I can go low. Heck, my offer going in represents less than 1/2 the original listing price for the place 2 yrs ago.

 

[ChuckinNH]

Without seeing it, or really knowing what the recession we are going through has done to used tractor prices, perhaps the best thing to do would be to get a local dealer put a value on it for you. It would be worth a few bucks to have him do that. That model came out just about two years ago, so the tractor isn't very old.

 

[bp fick]

yes, I can go low. Heck, my offer going in represents less than 1/2 the original listing price for the place 2 yrs ago.

Less than half of what things sold for at the bubble or near the top of the bubble is about right, especially if it defaults. That's what we did one year ago today. 35% of bubble price. We still count it an unqualified blessing

The fun part was trying to reduce the property taxes by getting it re-assessed by the township. Ah...no. You aren't going to get it re-assessed at what you stole it for, but I did appeal and got it assessed at 65% of the bubble price. Best I could do.

Best wishes for your purchase. Hope it all works out for you. Beware there is a lien on that tractor that might need to be cleared? Just check, that's all.

 

[bp fick]

That model came out just about two years ago, so the tractor isn't very old.

Hey Chuck, that 2910 actually was introduced at the tail end of 1999. FWIW.

 

[ChuckinNH]

Yes! I was thinking B2920 when I wrote that.

 

[JOHNTHOMAS]

Less than half of what things sold for at the bubble or near the top of the bubble is about right, especially if it defaults. That's what we did one year ago today. 35% of bubble price. We still count it an unqualified blessing

The fun part was trying to reduce the property taxes by getting it re-assessed by the township. Ah...no. You aren't going to get it re-assessed at what you stole it for, but I did appeal and got it assessed at 65% of the bubble price. Best I could do.

Best wishes for your purchase. Hope it all works out for you. Beware there is a lien on that tractor that might need to be cleared? Just check, that's all.

Here taxes are based on deed sale price with Property Valuation being required by the state at least once every five years. More than likely here you would pay taxes on the deed purchase price for 5 years.

 

[bp fick]

Here taxes are based on deed sale price with Property Valuation being required by the state at least once every five years. More than likely here you would pay taxes on the deed purchase price for 5 years.

JT, in Michigan, we are assessed by local assessor, (city, township: a county subdivision, village, depending on what type of corp you live in).

At the appropriate governmental assessing level, we have the right to an appeal's board meeting, once a year. So, I was stuck for over a year, paying the higher assessed tax rate. Just somewhat grateful to have gotten it lowered some and that will kick in the future.

The point is taken, though. When buying these distressed sales properties, don't expect to immediately enjoy a lowered property tax rate. Do your homework. Find out your local situation and be pro-active. The governing/tax levying entity isn't going to just smile and grant you a huge reduction just because they love you.

 

[JOHNTHOMAS]

JT, in Michigan, we are assessed by local assessor, (city, township: a county subdivision, village, depending on what type of corp you live in).

At the appropriate governmental assessing level, we have the right to an appeal's board meeting, once a year. So, I was stuck for over a year, paying the higher assessed tax rate. Just somewhat grateful to have gotten it lowered some and that will kick in the future.

The point is taken, though. When buying these distressed sales properties, don't expect to immediately enjoy a lowered property tax rate. Do your homework. Find out your local situation and be pro-active. The governing/tax levying entity isn't going to just smile and grant you a huge reduction just because they love you.

The PVA here is elected. He won't do it for love but he might do it for a vote which means an ongoing paycheck. We also get to appeal once a year. I have two families renting from me that just moved here from Michigan. Maybe you need to join them.:thumbsup: