I just did a quick glance at Zillow.com for recently sold homes in Minnesota with my square footage and similar location. Sold prices were 1/3rd of my appraised value (homes sell for way over tax appraisal here) and they had acreage and were newer than my tiny lot and old crappy house. The thing that holds me here is I grew up in the house but that charm is fading.
I have no idea what your property is like or what comps you used on Zillow (by the way, Zillow shows my neighbor two doors down sold his home last fall for $819,000. It sold for $329,000.). Texas and Minnesota have nearly identical median home values ($179,700 for Minnesota — upper 170’s for Texas). My firm handles real estate closings, so I have a fairly good idea of the market here. Homes generally sell for between tax assessed value on the low end and 130% of tax assessed value on the higher end. If you used Zillow comps from sales in the ag-based area of Minnesota, you’ll find sellers practically begging buyers to take homes off their hands. I have a client whose dad passed away recently owning a home in a dying western Minnesota town. Two story, 2000 sq ft, 40 year old home on 5 acres with a large heated workshop and a couple of extra storage buildings. They will be fortunate to get $50k for it. More likely in the mid-$30’s if anyone actually buys it. Move that same property 100 miles east and you’re looking at around the median home price.