Have a potential deal in the works in south Tx. The property had oil leases in the 90s and has 2 plugged oil wells on it. The land is 16 acres, valued at roughly $190K and I could potentially acquire the property for 50% of appraised value, leaving decent margin for profit/return of income. Does having the oil wells make the land less valuable or have less resell value?
Thanks,
Terron
@terronjames I’ve dealt with this in CA. There is a state agency that has all of the capped oil wells mapped out. That same agency will be able to tell you about any restrictions on the use of the land. Many times they won’t let anyone build on top or near the capped wells. Depending on what else is going on with the property it could make the property virtually useless to someone looking to build. I don’t know what the name of the similar agency in TX would be but perhaps search for Texas State Department of Oil and Gas or similar. The usability of the lot will have a lot to do with the value of the lot. The lot is more valuable if it’s buildable. If it’s not, you will need to consider your market to see what the right price is. Good Luck