Land values in Waskish area

[traveler]

We spent the weekend on and around Red and got to thinking...because we also deer hunt in the Kelliher area, it might not be the worst idea to look into buying a little piece of property. Not a big tract for hunting, we're plenty happy with the state land we've been hunting for many years, but maybe a place for a small cabin and access to Red, either directly or close. Are land values in the area generally on the rise like everywhere else? If we were to look for something close to Red, would the value of land be tied directly to the continued success of the Red restoration, and in jeoperdy if that were to nosedive? Just curious really...and thoughts?

[Random guy]

Lets put it this way, a few years back poeple built nice resorts, bars, little diners, built nice cabins and whammo no fish and property values bottomed. Then a couple of weary men stumbled onto the frozen ice of red and found a majic crappie. Well they spoke of this majic crappie and the majic crappie sold houses, built cabins and cranked property values. Now that this majic crappie has left the stage for act two, the walleye recovery. Well the walleyes are a nice show but not enough for poeple to stay in their seats. So many houses sit in what I think is a stale market, lots of for sale signs with very fer "Sold" signs on top. Values are up and several feelers out right now.

Now what does the future hold? Could the majic crappie come back for a encore? Will the walleyes become trophy class or will the lake crash and burn again?

This is why they have guys that make a living from judging the risk of a uncertain market, you could be a hero or zero depending on what the lake does.

Now this is just thoughts from a local joker talking about majic crappies. I would call a real estate agent and have them show you what is around the area and you make the call if you want it or not.

[shae1986]

Well you can look at the houses in general now. The main housing boom is over, property values and house sales are down, basic supply and demand, there use too be a lower supply and you saw a lot of new houses built, now you are seeing more houses for sale and the demand for them is down. Now lakes and recreation put more pressure on the market and raise values. It will be interesting too see what happens in the next couple of years.

[BLACKJACK]

My brother and I talked about 7-8 years ago, when we first started coming up to Red, about buying a cabin or lot to use as a base when fishing up there but never 'got around toit'. Now we're kicking ourselves. Guess we'll just have to settle for camping on Tamarack in the spring and renting a house from Kelly and Jon in the winter!!! I do know that we usually have a good time when we go and we plan on continuing our trips to Red just to see how the fishery evolves.

[Mike L]

Just an observation, but if ya look at listing prices and then backcheck property tax records, you'll often see asking prices double that being assessed.

[halad]

Believe me assessments are catching up!

[kelly-p]

Most of our lands accessed value has doubled or tripled the past 5 years. It is my understanding that the accessed values are being raised at the max allowable rate and it will still take 3 or 4 years of max increases for the accessments to catch up to market value. It's making it very difficult for those people living on fixed incomes.

Some of the lands bought the past few years are right back on the market when people discover that with the present quagmire of wetlands laws MN has right now the land can not be developed.

[traveler]

Thanks for the input guys. I kind of figured prices had gone up in the last few years, but in the long run I expect it's all tied to the success of Red lake. Soooo....who's got a crystal ball? Whats the fishery gonna look like in 10 or 20 years? Not much point having access to another dead sea, not that i think thats the direction it's headed or anything. Maybe I'm an optimist, but I hope mistakes of the past won't be repeated.

[Mike L]

Never intended to imply that assessments wern't catching up.

Polk Co is very close on market vs assessed. My implication is that some folks may be hallucinating on what the market value really is.

Those properties tend to sit on the market 'til hell frezes over.

[Mike L]

I don't think ya can go wrong with 100 foot of lakeshore. Ever. Just be sure that you are not buying a delineated wetland or a property that can't make a perk test for septic.

[Mike L]

My 2 acres on the Red Lake River has doubled in 3 years. Even though most is in the flood plain.

Just enough to be able to put up a shack, though.

[halad]

There are 2 100ft lots here near me on the south shore that that are high and dry that there should be no problem building on they were filledin back in the days when they did the ditching. The problem with this area has always been driving distance from everywhere, unfishable days because of wind, and BUGS, other than that its beautiful here.

[Pikester]

Plus there are a lot less gun packing gangsta wannabe's up there! Ill take it!

[LABS4ME]

The value of my fish house once it's plopped on the lake for the winter.....

PRICELESS!

Good Luck!

Ken

[traveler]

Halad; any idea what price range those lots are in?

[kelly-p]

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Plus there are a lot less gun packing gangsta wannabe's up there!

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Haven't met halad have you?

[halad]

$80,000 to $100,000

[DunceenKen]

Halad, I think I found a piece of property not to far from you, 300+ feet of lake shore owned by a fellow in Black Duck. It is not listed with any real estate broker, just a private sale, I made him an offer, said he would think about it. The beauty of this is the lot could be spilt into 3 separate pieces an resold giving the buyer ( me ) an almost free lot, not at all a bad deal if it works out.

[bradyd]

Or you could just not sell the extra land and not have to deal with neighbors!!

[chaffmj]

100 foot lots are ok unless you don't like your neighbors and you can't pick your neighbors like you do your nose!

Also remember the best things in life rarely come free!

[bradyd]

You can if you own the land though!!

[halad]

That is a nice lot dont break it up you will appreciate the room over the years. Probably some wetland issues. That is a private road and bridge over the Shotley. Who will maintain in future? Good luck.

[MuskieJunkie]

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Most of our lands accessed value has doubled or tripled the past 5 years. It is my understanding that the accessed values are being raised at the max allowable rate and it will still take 3 or 4 years of max increases for the accessments to catch up to market value. It's making it very difficult for those people living on fixed incomes.

Some of the lands bought the past few years are right back on the market when people discover that with the present quagmire of wetlands laws MN has right now the land can not be developed.

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I’m jumping in late and apologize. I can answer all the assessment questions if anyone still cares. By law property assessments in MN are 100% of market value, always have been and probably always will be. There is no limit to how much an assessment can go up. If an Upper Red Lake property is worth 3 times more today than it was yesterday (regardless of why) then it will be assessed for twice as much. There might be mistakes like the example of a property on the market for double the assessment but those are the exception not the norm, and it could be the county is right on it’s just the asking price is to high or someone overpaid. Counties have to be within 10% of market value, if they’re not the Department of Revenue steps in and does blanket increases to get them there.

There are a couple reasons it may seem that your assessment is lower than it should be. The first is a program that allows people to pay on a lower value than the property is assessed for, it’s called Limited Market Value. This program ended in 2001 and is currently in a state of “phase out”. To over simplify it the limited value increases by 15% each year until it catches up to the full value.

The second is that assessment are done as of January 1st each year and that’s what you pay taxes for the next year. So in a market that is increasing lets say 10% per year by the time you look at your May 15th 2007 tax bill that value on there was from January 1st 2006 (a year and a half ago) and it may seem like your assessment is 15% low. When the market flattens out now it looks like you are paying on the real value.

Hope I cleared up some of this and didn't just confuse you guys more. If anyone else has more questions I’ll check back and try to answer them.

[jc_higgins]

You would be better off buying property with a "delineated" wetland than a lot with no history of wetland identification. Lots of the undeveloped lots up there have wetland issues, and buying something blind may result in some unpleasant surprises. At least you know what you have up front if it has been delineated. Contact the County Soil and Water Conservation District for more info.

[jc_higgins]

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I don't think ya can go wrong with 100 foot of lakeshore. Ever. Just be sure that you are not buying a delineated wetland or a property that can't make a perk test for septic.

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(See previous post) Obviously if the entire lot is a delineated wetland with no buildable area, you may not want to buy it unless you are just looking for winter foot/ATV access to the lake or you are a tree hugging nature walker who likes to donate to the mosquito blood bank.