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#460706 - 02/20/18 11:46 AM Old Mine on Property - Increased Value?
kyle_flory Offline
Junior Member

Registered: 02/20/18
Posts: 3
Loc: Idaho
Hello!

First post on this website. I have piece of vacant land I might list, it's 14 acres of hill side with a decent slope. It has a road going up to what could be a building site with some excavation. The cool part of this property is there is an old mine from the early 1900s. They believe it was a silver mine. It's inactive now, but you can walk back in there, it's about 80 ft deep and ranges anywhere from 5-7 ft in height, you can walk to the back. There is also fresh water in the back.

My question is, what kind of value do you think a mine would add to the property? Not for someone to actually mine in it, thinking more of unique uses for it, wine cellar, redoubters, etc.. I don't think there is anything else like it in our market, any ideas?

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#460708 - 02/20/18 11:03 PM Re: Old Mine on Property - Increased Value? [Re: kyle_flory]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7857
Loc: Vermont's North-East Kingdom
How did you acquire this Parcelit . . . . and did you have a Title Search performed (or a Title Abstract pulled) BEFORE you bought it just to make sure that some prior Owner didn't retain the Mineral Rights while still selling the overriding surface Land ?

I've had to deal with some of these, and to clear the retained "mineral rights" issue, the Buyer had to agree to share any profits that might be obtained by engaging in any future mining or mineral exploitation on the subject property . . . . a fairly costly legal matter.

PS: And hopefully, that "Mine" doesn't present a serious Liability Hazard, or serve as a known "Attractive Nuisance" which you may be wise to insure against; a concern most people can usually ignore with vacant property.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#460710 - 02/21/18 09:04 AM Re: Old Mine on Property - Increased Value? [Re: Vermont]
kyle_flory Offline
Junior Member

Registered: 02/20/18
Posts: 3
Loc: Idaho
Thank you for your response. Sorry, I should have clarified better, I don't have a property I might list, there is a property I might list smile A client of mine owns it. I don't think he's marketing it as a mine that you can actually mine deeper and find silver. Just as a inactive mine that could be used for other purposes. I just think it is unique and should add value to the property, I just have no idea how to quantify that value..

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#460719 - 02/22/18 04:47 AM Re: Old Mine on Property - Increased Value? [Re: kyle_flory]
Long Walk Offline
Member

Registered: 06/27/08
Posts: 309
Loc: New Hampshire
Originally Posted By: kyle_flory
Just as a inactive mine that could be used for other purposes. I just think it is unique and should add value to the property, I just have no idea how to quantify that value..
Hi Kyle -- once you go over all of Vermont's points with your client, you only have 1 way to value it: Find an appraiser or broker in your part of the world that sold a similar property and compare that sale price to other comparable properties (adjusted for location, financing, terms of sale, etc.) to see if there was a contributory value for the mine.

Listing the property without knowing that contributory value could put you at risk of a complaint to the Real Estate Board, or, worse, a lawsuit.

You may want to check with your broker to see if an appraisal is needed to establish the contributory value of the mine. That way nobody is risking anything, you have a listing priced to sell, and the seller gets to make an informed decision.

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#460723 - 02/22/18 06:06 AM Re: Old Mine on Property - Increased Value? [Re: Long Walk]
kyle_flory Offline
Junior Member

Registered: 02/20/18
Posts: 3
Loc: Idaho
Thank you! That's great advice.

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#460745 - 02/25/18 07:54 AM Re: Old Mine on Property - Increased Value? [Re: kyle_flory]
Artiste Offline
Major Contributor

Registered: 06/12/06
Posts: 2372
Loc: Arizona Bay
If they dug one mine, they dug several so be careful on the property that you don't find an abandoned mine by accident. Best to hire an expert to examine the land, note the abandoned mines and cap them if they're still open.
_________________________
Let's take back the real estate between our ears and get green like a sonofa$%^&*

NAFTA is over!!
(if you want it)


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#460749 - 02/25/18 11:02 PM Re: Old Mine on Property - Increased Value? [Re: kyle_flory]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7857
Loc: Vermont's North-East Kingdom
A property like the Mine can sit vacant (or idle) for decades, and then you put a FOR SALE sign on it and SUDDENLY it becomes a curiosity feature in the environment. Everyone thinks that the Listing and your Advertising automatically gives them some kind of PassPort to go wandering around on the parcel and investigate every nook and cranny. That's when accidents occur.

Forewarned is forearmed . . . . you've got to do your due diligence.

Regarding the pricing . . . . it depends how you play it. For some people, it will be worth more due to the Mine; For others, it will be worth a lot less.

I'd study the history of this parcel and any surrounding mining activity. Is there Zoning in that Town, and what current environmental concerns would inhibit a future Buyer's use of the land. Any slag remaining that requires clean up by the Owner ?

And remember to do your research and analysis FIRST because it's next to impossible to start low and then "try" to raise the price later.

PS: I once had a 49 Acre Gold Mine lot listed, which sounded good on paper; but it sold for hardly more than the Timber Value. It was the "Nest Egg" for a Preacher Man who distributed Gideon Bibles around the Country to Hotels and Motels . . . . and he had a premonition that it would allow him to retire rich; but it didn't work out that way !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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