01 — METHODOLOGY

Backing out the
improvements.

Standard $/acre comparisons are misleading when properties carry different levels of improvement. A 73-acre ranch with a $1.5M custom home trades at $45,563/acre, but that does not mean the land is worth $45K/acre. It means the improvements inflated the per-acre metric.

This analysis uses the cost approach to isolate land value:

  1. Estimate Replacement Cost New (RCN) for each comp's structures using Central TX construction benchmarks ($175 to $250/sf depending on quality and construction type)
  2. Apply depreciation using the age-life method (50-year useful life, straight-line, minimum 20% remaining value)
  3. Value site improvements separately: fencing, ponds, wells, barns, outbuildings, pools, guest houses
  4. Subtract total improvement value from the sale price to derive the implied land value
  5. Divide by acreage to get the adjusted land $/acre

This is the same methodology a certified appraiser would use in the cost approach to value. The result strips out the noise of improvements and tells us what the market is actually paying for raw land in this corridor.

Component Benchmark
Residential (above avg)$250/sf RCN
Residential (average)$200/sf RCN
Residential (basic)$175/sf RCN
DepreciationAge-life, 50yr, straight-line
Barn$40,000
Guest house$75,000
Workshop$30,000
Pool (depreciated)$60,000
Perimeter fencing$5/linear ft
Cross-fencing$150/acre
Improved pond$25,000 each
Water well$20,000
02 — IMPROVEMENT EXTRACTION

What the structures
are worth.

# Status Address Acres Sale Price Residence Outbldgs Fencing Water Pool Total Impr. Implied Land Adj. Land $/Ac
1 Closed 0 Highway 290, Paige, Bastrop 135.5 $3,300,000 $68,915 $25,000 $93,915 $3,206,085 $23,661
2 Closed 314 Big Sky Ranch Rd, Smithville, Bastrop 73.5 $3,350,000 $1,524,600 $115,000 $35,792 $45,000 $60,000 $1,830,792 $1,519,208 $20,662
3 Closed 1518 Old Sayers Rd, Bastrop, Bastrop 144.2 $2,796,698 $75,000 $50,117 $45,000 $170,117 $2,626,581 $18,221
4 Closed 1518 Old Sayers Rd, Elgin, Bastrop 144.2 $2,500,000 $25,000 $25,000 $2,475,000 $17,169
5 Closed 1241 County Road 406, Lexington, Lee 135.4 $2,375,000 $121,900 $55,000 $68,884 $20,000 $299,384 $2,075,616 $15,329
6 Closed 234 Sandy Rd, Rosanky, Bastrop 115.1 $1,900,000 $123,984 $10,000 $44,774 $178,758 $1,721,242 $14,960
7 Closed 0000 Gotier Trace Rd, Paige, Bastrop 106.4 $2,800,000 $972,875 $150,000 $43,050 $45,000 $1,210,925 $1,589,075 $14,940
8 Closed 769 High Grove Rd, Cedar Creek, Bastrop 112.5 $1,625,000 $280,440 $25,000 $305,440 $1,319,560 $11,729
9 Closed 4300 County Road 481, Thrall, Lee 120.7 $1,900,000 $340,200 $45,000 $63,947 $25,000 $60,000 $601,347 $1,298,653 $10,764
10 Closed 1595 Highway 95 S, Smithville, Bastrop 174.8 $4,200,000 $2,314,770 $30,000 $26,227 $45,000 $2,415,997 $1,784,003 $10,203
11 Closed 239 Barton Oaks Dr #A, Smithville, Bastrop 172 $2,850,000 $744,000 $338,000 $80,544 $25,000 $60,000 $1,297,944 $1,552,056 $9,024
12 Closed 235 Acorn Rd, Lockhart, Caldwell 99.6 $1,200,000 $84,000 $115,000 $41,666 $25,000 $60,000 $342,466 $857,534 $8,607
13 Closed 490 John Craft Rd, Red Rock, Bastrop 77.2 $800,000 $392,750 $10,000 $36,679 $439,429 $360,571 $4,670
14 Pending 250 Reids Bnd, Bastrop, Bastrop 132.3 $6,799,000 $180,000 $20,000 $200,000 $6,599,000 $49,865
15 Pending TBD (88.852 Acres) Smith Rd, Bastrop, Ba... 88.9 $4,000,000 $4,000,000 $45,019
16 Pending 6019 Fm 3158, Dale, Caldwell 79.2 $1,821,600 $67,060 $5,000 $20,000 $125,660 $1,695,940 $21,413
17 Pending 452 Ponderosa Rd, Bastrop, Bastrop 89.7 $1,900,000 $20,000 $20,000 $1,880,000 $20,949
18 Under Contract 624 County Road 306, Rockdale, Milam 117.4 $3,950,000 $111,040 $50,000 $25,000 $60,000 $246,040 $3,703,960 $31,539
19 Under Contract 000 FM 671, Luling, Caldwell 135.4 $2,302,650 $2,302,650 $17,000
20 Under Contract 147 Blue Sky Dr, Bastrop, Bastrop 77.4 $1,347,500 $40,000 $48,341 $20,000 $108,341 $1,239,159 $16,006
21 Under Contract 3400 Kirk Cors, Harwood, Caldwell 83.2 $1,000,000 $402,720 $68,000 $38,072 $25,000 $533,792 $466,208 $5,604
22 Active 531 Highway 71 W, Smithville, Bastrop 152.6 $6,522,260 $176,000 $65,000 $74,470 $45,000 $360,470 $6,161,790 $40,366
23 Active 303 Bob's Trl, Bastrop, Bastrop 100 $4,300,000 $946,000 $310,000 $56,742 $20,000 $1,332,742 $2,967,258 $29,673
24 Active 15657 Fm 86, Dale, Caldwell 103.2 $2,450,000 $104,720 $100,000 $57,867 $279,387 $2,170,613 $21,043
25 Active 5066 Fm 535, Cedar Creek, Bastrop 89.1 $1,869,000 $85,550 $40,000 $39,404 $20,000 $218,554 $1,650,446 $18,521
26 Active 256 Greasy Bend Rd, Smithville, Bastrop 114.3 $2,100,000 $2,100,000 $18,378
27 Active 1584 County Road 226 Rd, Giddings, Lee 108.9 $3,850,000 $1,584,720 $210,000 $60,000 $1,955,520 $1,894,480 $17,392
28 Active 137 Shady Oaks Loop, Cedar Creek, Bastrop 97.0 $1,800,000 $41,335 $40,000 $45,000 $126,335 $1,673,665 $17,262
29 Active 170 Zack Ln, Giddings, Bastrop 72.8 $1,375,000 $53,480 $130,000 $25,000 $208,480 $1,166,520 $16,028
30 Active 1648 Jeddo Rd, Rosanky, Bastrop 71.2 $1,400,000 $60,900 $255,000 $25,000 $340,900 $1,059,100 $14,879
31 Active TBD County Road 103, Paige, Lee 142.4 $2,500,000 $211,200 $130,000 $49,809 $25,000 $60,000 $476,009 $2,023,991 $14,215
32 Active TBD High Grove Rd, Cedar Creek, Bastrop 291 $3,600,000 $25,000 $60,000 $85,000 $3,515,000 $12,079
33 Active 5637 Jeddo Rd, Waelder, Fayette 117 $1,600,000 $49,770 $55,000 $62,701 $45,000 $212,471 $1,387,529 $11,859
Subject 762 Karisch Rd, Giddings, Bastrop 116.9 $2,300,000 $251,776 $55,000 $62,682 $45,000 $414,458 $1,885,542 $16,123
03 — FINDINGS

The adjusted
picture.

Metric Raw $/Acre Adjusted Land $/Acre
Min $10,361 $4,670
Median $17,343 $14,940
Mean $20,017 $13,819
Max $45,563 $23,661
Subject $19,668 $16,123

The adjustment reveals a tighter range. Once improvements are stripped out, the spread in land values narrows from $10K to $46K/acre (raw) to $5K to $24K/acre (adjusted). The outliers are explained:

Hwy 290 at $23,661/ac trades at a premium because it is raw land with significant highway frontage, likely priced for development potential rather than agricultural use.

John Craft Rd at $4,670/ac trades at a steep discount because the 2020 sale price was nearly consumed by the improvement value of the 3,142 sf home built in 2001. The implied land value may understate true land value if the home was functionally obsolescent.

The subject at $16,123/ac sits above the adjusted median of $14,940/ac. The $414,458 improvement value is modest for a 117-acre ranch: a 2,248 sf home built in 2004 with barns, five ponds, two wells, and full cross-fencing. The asking price implies the seller is pricing the land at a slight premium to the comp set.

The five comps most similar to the subject (100 to 140 acres, Bastrop County, with improvements, closed within 12 months) indicate an adjusted land range of $11,729 to $17,169/acre. Applying the median of those five ($14,940/ac) to the subject's 116.94 acres and adding back the subject's improvements:

$14,940 × 116.94 = $1,747,143 (land) + $414,458 (improvements)
= $2,161,601 indicated value

This suggests the asking price of $2,300,000 is approximately 6.4% above the improvement-adjusted indicated value. A reasonable offer range would be $2,050,000 to $2,175,000.

04 — RECONCILIATION

Three approaches,
one number.

Approach Indicated Value Weight
Raw Comp Analysis $2,050,000 to $3,080,000 (Q1 to Q3) 25%
Improvement-Adjusted $2,030,000 to $2,162,000 (mean to median) 50%
Income Approach (STR) N/A (not currently income-producing) 0%
Cost Approach $1,747,000 (land) + $414,000 (impr.) = $2,161,000 25%
Reconciled Opinion of Value: $2,100,000 to $2,175,000

The improvement-adjusted analysis receives the most weight because it isolates the variable that matters most in ranch transactions: what buyers actually pay for the dirt. The raw comp analysis is given less weight due to the distortion from varying improvement levels. The cost approach confirms the adjusted analysis.

At the asking price of $2,300,000, the property is priced 6 to 10% above our reconciled value. This does not mean it won't sell at asking, but it does mean there is room to negotiate. A credible opening offer of $2,000,000 to $2,050,000, with support from this analysis, gives the buyer a strong negotiating position.