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Thread: How much to bid for an AK auction parcel?

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    Member tccak71's Avatar
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    Default How much to bid for an AK auction parcel?

    I have no idea if I put this in the correct forum...
    I was looking at the last AK land auction brochure and was wondering if anyone had advice or input on how much to bid on a parcel, or what % to bid over the minimum bid price? Any input or ideas?

    I've looked at alaskarealestate and landinalaska to get an idea of how much per acre property in the area is going for, but does anyone else have an educated guess how to form a bid?

    http://landsales.alaska.gov

    Thanks
    Tim

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    Member fshgde's Avatar
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    You will find a many go just slightly over minimum but easy access ,view , or waterfront lots can go a lot higher also if it last lot in a subdivision. You can get previous winning bids to give you an idea .

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    Moderator Paul H's Avatar
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    Figure out what is most important to you, getting the lot for the minimum price, or winning the auction. If you'll kick yourself for loosing an auction for THE lot for you, then bid higher. Generally desireable lots are going to see more bidding, but you never now until the results come out.

    For instance the vacant lot next to us was foreclosed on and we hemmed and hawed about bidding on it. I knew I'd kick myself if it went cheap and we didn't bid on it, and I knew what I should bid on it if we really wanted to win the auction. I also know if I'd bid enough to be sure to win the auction, it would delay us from building our house for at least a year. So we ended up bidding a bit higher than half the, I'd kick myself if it sold for this much and we didn't bid price," The number I figured I'd have to bid to win ended up being 10% over the winning price and nearly double what we bid. It was a very active auction with over 30 bids. At the end of the day I was happy with the decision and could live with the results. Sometimes you win, sometimes you loose, sometimes winning is loosing, sometimes loosing is winning.
    Those that are successful in Alaska are those who are flexible, and allow the reality of life in Alaska to shape their dreams, vs. trying to force their dreams on the reality of Alaska.

    If you have a tenuous grasp of reality, Alaska is not for you.

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    If it is waterfront, any kind of water front, bid higher. Those always go first and for more than minimum bid. After that, lots tend to go for at or just over minimum bid. I would strongly urge you to go look before bidding. Many people don't and end up disappointed. I would never bid on a lot sight unseen.

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    Never could understand why anyone would even bid on subdivision land in the Bush. The whole concept of offering remote property in the form of a subdivision is one of the dumbest things this State has ever done....And this State has done some pretty dumb stuff....

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    Member Rob B's Avatar
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    So glad this topic came up. We are thinking about playing the Matsu Borough land auction game too. I always wondered how much to bid.


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    Premium Member kasilofchrisn's Avatar
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    Quote Originally Posted by pipercub View Post
    Never could understand why anyone would even bid on subdivision land in the Bush. The whole concept of offering remote property in the form of a subdivision is one of the dumbest things this State has ever done....And this State has done some pretty dumb stuff....
    Privately owned remote land in Alaska is somewhat rare and hard to come by. Most of this state is government or native owned land.
    So if you want a remote cabin you are often forced to buy what is offered which may well be a subdivision.
    Getting a loan for remote recreational property can be difficult sometimes as well. So if this subdivision land is cheaper I can see why many people go this route.
    I know my dad was looking seriously for some remote cabin property and it wasn't easy to find exactly what he was looking for that wasn't some kind of subdivision property with neighbors not that far away.
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    Member ADUKHNT's Avatar
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    Some lots are hot. Check previous years sales records but first and foremost go see the property. Another thing to look at is who if anyone owns the parcels around the one you want to bid on. Why? Because if one person or family owns the lots around the one you want, they are more than likely to bid and bid high on it. I was going to bid on the land north of mine, it appraised for around $8700 and sold for nearly $15,000. The couple who bought it now has a 40 acre square of land. Start your journey at the state land sales office, they are very helpful. Good luck
    I have such a hard time trying to decide which outdoor activity to do every chance I get!! Living in AK is a mental challenge

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    Member tccak71's Avatar
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    Quote Originally Posted by kasilofchrisn View Post
    Getting a loan for remote recreational property can be difficult sometimes as well. So if this subdivision land is cheaper I can see why many people go this route.
    I know my dad was looking seriously for some remote cabin property and it wasn't easy to find exactly what he was looking for that wasn't some kind of subdivision property with neighbors not that far away.
    I couldn't rep yah'.

    It's real tough to get a loan on a tight budget. 30-40% or more down. That's why I'm going the State route. 5% down and 20 year possible financing.
    Tim

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    Member akriverunner's Avatar
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    Quote Originally Posted by tccak71 View Post
    I have no idea if I put this in the correct forum...
    I was looking at the last AK land auction brochure and was wondering if anyone had advice or input on how much to bid on a parcel, or what % to bid over the minimum bid price? Any input or ideas?

    I've looked at alaskarealestate and landinalaska to get an idea of how much per acre property in the area is going for, but does anyone else have an educated guess how to form a bid?

    http://landsales.alaska.gov

    Thanks
    Tim
    If you are looking at road accessible parcels they normally go higher, the state already has the minimum bids super high for 1-2 acre lots and a lot of them have no utilities and cost to get utilities to them are outrageous. Remote parcels normally have a fair minimum bid and go for about the going rate you would see if listed on the market through private party sale. Whatever you do go walk the land and check out the surroundings if its remote property before break up, if it's road accessible go check out the parcel, neighbors and subdivision and do your homework for utilities if you plan to build a structure on it.


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    Member Alaskanmutt's Avatar
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    20 years only if the purchase price is over 20,000 financed (your down payment is deducted from this amount)

    $2,000.01 $9,999.99 5 years
    $10,000.00 $14,999.99 10 years
    $15,000.00 $19,999.99 15 years
    $20,000.00 infinity 20 years

    Here is an idea...
    $20,000.00 Land Value
    $1,000.00 Down payment
    6.25 Interest Rate (3% above Prime as reported in the Wall Street Journal on the first day of the month the contract is written)
    monthly Payment Frequency

    181 Number of Payments (including down payment)
    $163 Payment Amount
    $10,324 Total interest paid "these values are approximations only"
    $29,324 Total Amount Paid
    15 years Length of contract, in years


    generally payments do not go below about $140
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    Member tccak71's Avatar
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    The lot I was looking at had a minimum bid of $36,600, I believe and it went for $42,000. Decided not to bid though.

  13. #13
    Member akriverunner's Avatar
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    Yeah, they normally go for **** close to fair market value it seems. It doesn't seem to be as good of a deal as it has in the past.


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