Waters of the US (WOTUS)

EPA and the Corps Announce Opportunities for Public Input on WOTUS

On August 25, the US EPA and the Corps today announced a series of teleconferences, one in-person meeting, and other opportunities for public input on Waters of the US (WOTUS) this fall. “The Environmental Protection Agency (EPA) and the U.S. Department of the Army (the agencies) will hold ten teleconferences to hear from stakeholders their recommendations to revise the definition of “Waters of the United States” under the Clean Water Act (CWA),” the announcement starts. “Both EPA and the Corps are aware that the scope of [Clean Water Act] jurisdiction is of intense interest to a broad array of stakeholders and therefore want to provide time for broad pre-proposal input,” the notice states. View the full announcement here.

The Realtors® Land Institute (RLI) stands behind the US EPA’s decision yesterday to move forward repealing the controversial Clean Water rule which was put in place in 2015. RLI has long advocated that withdrawing WOTUS would have a beneficial impact on the real estate sector, especially land real estate. The organization hopes to see the review of the rule eliminate the need for costly and time-consuming permits on waters that were previously unregulated by the federal government.

RLI encourages its members and landowners across the country to participate in the comment period during phase one, which is implementing a rule to re-codify the regulation that was in place prior to 2015. This comment period is currently open through September 27, 2017.

RLI also encourages participation in the series of teleconferences that will be held to better define the scope of CWA jurisdiction. The teleconferences will be held on a weekly basis beginning September 19, 2017. For a full schedule of webinars and ways to participate, please see the full announcement.

land real estate

Uncovering Motivations to Buy or Sell Land Real Estate

“I want to sell, but I don’t need the money.” This is a common refrain uttered by people who are contemplating the sale of a piece of real estate. If they do not need the money, then why are they selling? Finding the “Why”, the “What”, the “When”, the “Who” is an essential part of making a real estate deal come together.

Several years ago I helped some seller clients sell about 800 acres of beautiful hardwood and pine timberland that had been in the same family for over 70 years. There were simultaneous offers to purchase the land, one came from a hardwood timber company and the other from a small group of land investors. My clients looked at both offers, and immediately rejected the one that had “timber” in the name of their organization. One of the family members told me, “These other people may cut the timber also, but at least it isn’t in my face.” I believe the timber company would have ultimately paid a higher price than the investors did, but the sellers preferred to deal with individuals instead of the timber company. Their motivation was not only money, but also seeing that the land ended up in good hands.

Here are a few considerations regarding motivation that I have seen influence the decision of buyers and sellers.

  1. Past Experiences- Past experiences, positive or negative, can play a significant role in the outcome of a real estate deal. I have seen sellers refuse to sell to an adjoining land owner because of some long-running family feud. I have seen buyers refuse to make an offer on a listed property because they had a bad experience with the listing agent in the past. Those little details can mean all the difference between getting your deal done or not. 
  1. Time is of the Essence- Timing can be the most crucial part of a real estate transaction. A buyer may need to identify and make an offer on a replacement property because they are doing a 1031 exchange. On day 45 of their identification period, a buyer may be extremely motivated to try to work something out to avoid paying 15% to 20% in capital gains tax. Sellers may be faced with an immediate expense for a home repair or the loss of a job. If you wait a month to make a decision, they may find alternate sources of funding, and no longer be highly motivated to sale. I learned a long time ago, “The time to business is when someone is ready to do business.” The whole world can change for someone in a day, so don’t miss out on an opportunity because you dragged your feet. 
  1. Fear of Missing Out (FOMO)- If you’ve ever seen the look in a buyer’s eye when they missed out on a property they really wanted, you know what I am talking about. They missed one, but By George, they will not let that happen again. In 2015, I watched a professional athlete miss out on buying a property that would have been an ideal tract for him. Instead of paying the asking price and buying a tract he would have enjoyed for decades, he tried to make a lower offer and he missed out on the deal. He was trying to save about $150/acre and did not offer full-price. Another buyer came in one hour after the ball player made his offer, he offered full price, and bought the property. Two years later, the athlete found another property, across the river from the tract I sold, for about $750/acre MORE than the one he had the opportunity to buy before. He overpaid for a property of lesser quality because he did not want to miss out again. 
  1. Feel Goods- Emotions play a big part in many real estate deals. About 2/3 of the properties I sell are related to estate transition, and these farms and land have often been owned by the same family for generations. When it comes time to sell a property, they want to know that it is going to be to someone who will be a good steward of the property that their family has enjoyed for so long. I saw this exact thing happen several years ago when a family hired me to help them sell a property to a board member of The Nature Conservancy. They were convinced that this beautiful hardwood property along a pristine river would be protected in perpetuity if they sold to this type of buyer. Often, older farmers will offer owner financing or will sell at a reduced rate to help a younger farmer get started on their land.

Finding the motivations to buy or sell land real estate from the individuals in your real estate transaction will go a long way to helping you get your deal closed. It is important to ask questions of your customers and clients that will give you the answers you need to find out what really matters to them. Money is not the only motivation for many buyers or sellers, and I have seen a seller be offended by a buyer “showing off” with how much money he has. Your odds of a successful real estate transaction increase when the parties are able to each get what they want, and sometimes it takes more than just money to make the deal come together.

Jonathan Goode, ALCAbout the Author: Jonathan Goode is an Accredited Land Consultant (ALC) with Southeastern Land Groupand is a licensed real estate broker in Alabama and Mississippi. Jonathan is also a co-host of the weekly radio program, The Land Showand loves to serve people buying and selling land.

Kudzu: Friend or Foe?

Kudzu.  The mere mention of the word often invokes a visceral combination of both annoyance and fear.  Personally, I think of the movie ‘The Blob’ which was first released in 1958 starring Steve McQueen and Aneta Corseaut battling a gelatinous, alien life form that slowly engulfed everything in its path.  Similarly, I view kudzu as a scary, green pest slowly creeping along, plaguing the land in which it captures, and becoming the perfect habitat for an evil creature to live patiently waiting for its next unsuspecting victim to wander too close!  Am I being a bit dramatic?  Possibly. However, I’ve yet to meet anything other than a rattlesnake that considers kudzu a friend.

I was recently showing a beautiful tract of land to a client.  Everything was going well until we rounded a corner and there it was – a gigantic kudzu patch that looked like it had been growing for decades.  Rightfully so, the client expressed concern with having this on the property.  He wondered if kudzu could be eradicated and if so, would it be in his best interest to do so from both a financial and land preservation perspective.  These great questions left me eager to learn more about this common yet mysterious annoyance that I had become somewhat complacent towards having grown up in the South. Where did it come from originally?  Did it have a purpose?  If destroyed, does it do more harm than good?  I’d always considered kudzu a foe…but could it be a friend?

Cultures in the Pacific Rim utilize the kudzu root in cooking, teas, and herbal remedies.  The history of kudzu in the United States began in 1876, where it was brought to the World’s Fair in Philadelphia from Japan with the purpose of controlling soil erosion.  Seven years later, the Deep South embraced it as a beautiful ornamental plant that provided excellent shade for porches during the sweltering summer months!  Mesmerized by the immediate benefits of this hearty plant many of our ancestors used it for livestock feed, fertilizer, honey, and even a potential source for bio-fuel.  The government embraced the kudzu “bandwagon” and paid folks to plant it.  By 1946, they estimated over 3 million acres had been planted throughout the country.  They soon realized that this “dream plant” was turning out to be a nightmare rapidly spreading up to a foot a day especially in the Southeastern states due to its drought- thriving indigenous nature.  It climbed up trees, shrubs, and anything in its path… like “The Blob” …blocking sun rays thus diminishing or eliminating all of the photosynthetic productivity of the plush greenery underneath. Any soil erosion it may have prevented was ultimately a moot point considering its path of natural plant destruction.

In 1953, the U.S. Department of Agriculture removed kudzu from their list of suggested cover plants.  It was not until 1997, however, that it made the Federal noxious weed list.  To date, it is believed that kudzu now covers close to 7.5 million acres in Alabama, Mississippi, Georgia, Tennessee, and Florida alone! In addition to being a nuisance, kudzu has a significantly negative economic impact throughout the United States.  It is estimated that power companies spend between $1,500,000 – $1,700,000 annually to repair power line damage caused by kudzu.  The U.S. Forest Service reports have a much more conservative estimate of approximately 227,000 acres of kudzu growing in our forests. Some estimates are that close to $300,000,000 of lost forest productivity occurs annually due to kudzu infestation.

So, what did I tell my client?  Not to automatically dismiss a property because of kudzu, however, be sure to estimate the cost and time involved with controlling it.  County extension offices are typically equipped to assist landowners in determining the best plan of action based on their specific needs and location. Here are some of the most commonly used techniques for controlling kudzu on private land:

  • Mechanically:  mowing or cutting the vine back to slightly above ground level.  Kudzu debris should be completely removed then burned to prevent regrowth.  Another mechanical method involves completely removing the root crown by using a shovel to expose the base and then an axe to sever the root just below the crown.
  • Chemically: applying herbicides once at the beginning of the growing season (May) and then again in late summer or early fall. To completely kill the plant, plan on spraying 40-80 gallons an acre bi annually for a few years.  Tordon and Triclopyr are common herbicides used to eradicate kudzu.
  • Naturally: enlisting the help of animals to graze the kudzu.  Many use a small herd of goats or sheep to help in the battle.

Kudzu. It just goes to show you that something that started way back in 1876 as a clever idea to control soil erosion turned out to be a foe at best, “The Blob” at worst, and most definitely not a friend.

About the Author: Eric Leisy, ALC, is an avid outdoors-man, freelance outdoor writer, REALTOR® & Land Specialist for Great Southern Land Co.

sage grouse

Sage Grouse Management in the News

I read the recent article noting that our new Secretary of the Interior was directing mangers of the public lands to include flexibility in their plans to improve on sage grouse habitats. This, and in other articles I have read, continue to reference “livestock grazing” as one of the reasons for the decline of the sage grouse. In one article, they cite the main reasons for the decline of the sage grouse: “In 2013, the FWS identified 14 threats to the greater sage grouse: nonnative invasive plants, energy development, sagebrush removal, improper grazing, range management structures, wild horses and burros, pinyon-juniper expansion, agricultural conversion, mining, recreation, urbanization, infrastructure and fences.”   Interestingly enough, they always leave out the one reason that probably has the most impact on sage grouse populations and that is “Predators.”

We have more predators of the sage grouse now than ever before and still most will not recognize them as a major factor. One predator in particular whose population has grown by a thousand percent is the raven. University studies since 1948 have shown ravens as major predators of ground nesting birds and a 2003-2005 study “The Effects of Raven Removal on Sage Grouse Nest Success” by Peter S. Coates and David J. Delehanty of Idaho State University confirms the benefits of taking Raven’s out of the picture for improved nest success.

sage grouseWhy not give credit where credit is due? Some believe it is because controlling predators won’t give the public lands managers the control on other resource users that using “critical habitat” does.  There are organizations in the West whose main goals are to interfere with livestock grazing on public lands. In Idaho, they are trying to have dirt tanks (ponds created to store water for livestock) filled in because they are used as breeding grounds by mosquitoes since they are carriers for the West Nile disease which is found to also kill sage grouse.  Any of us who spend a lot of time in the habitat will tell you that these same ponds are frequented by many species of wildlife that benefit from them, just a livestock do.

Many argue that there has been entirely too much time and money spent on improving “habitat” for sage grouse. Historical records indicate there were very few sage grouse in the Great Basin before man settled. The journals of early day settlers such as Peter Skeen Ogdon (1828-1829); Jedediah Smith (1827); John Charles Fremont (1843-45) pay a lot of attention to wildlife and the diets of the native American’s they encountered.  In all these journals, there was one record of sage grouse found as a diet item (RE: testimony of Nevada Assemblyman Ira Hansen 2011). In the meetings in 2012, when the U.S. Fish and Wildlife Service (USFWL) was conducting a hearing on the potential listing of the sage grouse, they noted that they were using as a starting point the mid 1800’s and the areas they identified as sage brush areas at that time.  They were also using a two-million bird prediction based off that number of acres of sage brush.  In other words, the number of Sage Grouse being managed for is based on poor data that is not substantiated by historical records.

Livestock grazing can actually be a benefit to sage grouse and, if you look at the records, you will see that at the same time we had the most livestock on public lands is when we had the largest sage grouse populations. I believe mainly for two reasons:  first, we had an active predator control program at that same time; and second, over grazing of grass species allows shrubs to encroach onto those areas being overgrazed.

Livestock grazing kept the excess fuels down and we had fewer range fires. Managing for grass required leaving excess grass to reseed and I can tell you we have a lot more grass now than when I was a kid in the 1950’s and 60’s. In those days, we didn’t have government fire centers that did the firefighting, we did it ourselves. All the ranchers and other county residents would drop what they were doing when a fire started to put it out. That meant bull dozers being loaded and put on fire lines, it meant filling barrels with water, grabbing soaked seed sacks to slap out flames, and not stopping even at dark.  In fact, we usually got the fire under control at night as the winds calmed down and the moisture content of the air went up. We don’t have forests to deal with so fighting fires at night isn’t much danger.  Unfortunately, even today, the agencies who now control firefighting shut it down at dark and wait until after their 7 am fire meeting is over the next morning to get back to it. Changing this one policy would keep the size of our fires down considerably. To their credit, however, this year they are getting on the fires much sooner that they have in the past.

In summary and in my opinion  a)the sage grouse are not at a low enough population level to justify being listed as threatened or endangered;  b) the Critical Habitat Provision of the Endangered Species Act is being abused to list species whose populations don’t warrant listing; c) Livestock grazing is not a negative to the sage grouse; d)Predators are not even sited as one of the main impacts on the population even though there are numerous studies that show they are a large factor; e)the agency’s policy of not fighting fires in the Great Basin at night has burned literally hundreds of thousands of acres unnecessarily. On the other hand, I just sold a 10,000 acre ranch I had listed for over eight years to be used for sage grouse meditation with federal agencies. Suave on the sore!

About the author: Paul Bottari, ALC, is Owner/Broker for Bottari & Associates Realty Inc. in Wells, NV. Paul serves on the REALTORS® Land Institute 2017 Government Affairs Committee.

sage grouse

Conservation Plan for the Greater Sage Grouse Reviewed

After a June 7 order, the Department of Interior (DOI) has worked with various organizations and task forces to review the Greater Sage Grouse conservation plan under the Endangered Species Act. On August 7, the DOI released the first set of recommendations to make modifications to the plan. Farm and ranch land owners out west in affected areas have struggled with restricted cattle grazing and stunted development abilities to farmland properties since the plan was put in place in 2015. Most just want to see a balance struck between ensuring the species does not go extinct and that their private property rights are not infringed upon by legislation that is unnecessary. Read full article.

UPDATE | 10/6/2017 The Department of Interior, Bureau of Land Management announced the cancellation of a proposed withdrawal of 10 million acres of public land throughout the Intermountain West. The notice of cancellation can be found on the BLM website here.

These lands were proposed to be withdrawn as sage grouse habitat, but this massive withdrawal of public lands would have also significantly impacted the economies of communities who relied on this land for mining, grazing, timbering, etc.

NAR submitted a comment letter in 2015 expressing concerns about this public lands withdrawal and the economic impacts it would have had on communities.

The lands will continue to be managed in accordance with existing plans, programs, policies and regulations in Idaho, Montana, Nevada, Oregon, Utah and Wyoming.

Read more on Sage Grouse Management in the News in a piece by Paul Bottarri, ALC, on the RLI 2017 Government Affairs Committee.

residential land sales new home construction

The Evolution of Residential Land Sales in the Northeast

Northeast land values and trends in residential land sales: What has happened and can we see the future? I have been a practicing REALTOR® for thirty-eight years. I started selling real estate while in college and never looked back. My primary market is thirty-five miles west of Boston. The state of Massachusetts is really divided into these parts: Route 128 and inside, Route 495, both sides, to Route 128 and Worcester east to 495; and, then, Western Massachusetts. Massachusetts has a myriad of permits and land use regulations which are some of the most restrictive in the country, in my opinion.

As a young REALTOR® starting out, I did all types of land sales. My marketplace was dotted with family farms. Most of these, as a teenager, I would hunt, fish, and drink beer on (of course with land owner approval, or one of their sons / daughters in tow). When asked to write this, I thought of what story would be best to tell. The approach I’m taking will, hopefully, be applicable across into your marketplace.

In the late 1970s and the early 1980s, land could be bought for forty-five dollars per lot as an Approval Not Required Under Subdivision Control (ANR) lot. An “ANR lot” means that the lot complies with the dimensional requirements for public way frontage and the required minimum lot size. For backland, you could buy a forty-acre piece in the “raw” for ten thousand dollars per lot. Once under contract, you could begin the necessary permitting. The rule of thumb in practice at that time was that twenty percent of the land tract had to be given up to regulatory prescription; in this case, eliminating eight acres.

residential land real estateAt that time, my thoughts were that the entire regulatory morass was put on the landowner to the community’s benefit. Alas, to this day, I still feel the same. New homes were being built for fifty dollars per square foot, the lot included. A finished two-thousand square foot colonial was one hundred thousand dollars, or thereabouts. During the early 1980s, we had an escalating economy and prices on homes and land were rising dramatically. The state of Massachusetts started buying the developmental rights to family farms and paying them not to build, but to continue to farm. In Northborough, two of the biggest farms on the highest point in town, overlooking the new 1974 I-290 highway, were bought. Over five-hundred acres were kept from development and, until this day, serve as a reminder of why some regulations are necessary.

In addition, a certain amount of lots were allowed to be kept for family members in the future. Now, the third and fourth generations of farmers have their homes here and a vibrant farm business has grown, and keeps growing. In 1987, Massachusetts had a banner year selling farms at a price of forty-thousand dollars per lot in the raw while an ANR lot ran about seventy-five thousand dollars each. Then, we had a market adjustment and the local economy all across the Northeast was hit with a slowdown. It was during this time of slow, or no, growth that the regulations were revamped and revised to “protect” the environment and the school district. Zoning referendums were created and placed from community to community, as each town had different and more onerous restrictions in place. From aquifer laws, contiguous uplands, and open space as a minimum fifty percent, to revisions of soil standards, increasing sizes of subdivision roads, and increased setbacks. All of these regulations put a severe crimp on land values.

Despite tremendous efforts by landowners, builders, and REALTORS®, these regulations are now a way of life, to this day, in all our urban areas. When the “powers that be” implement new zoning, it has a tremendous effect on land values. In the mid-1990s, another piece was passed known as The Rivers Bill. This bill precluded development within two hundred feet of any listed stream and tributary in the Commonwealth of Massachusetts. Some of those listed were two feet wide at maximum and the only relief was if it dried up for three or more consecutive days so could you film it.

Now, we have arrived in the late 1990s. With ANR lots at $110 per lot and raw land at sixty thousand dollars per lot, finished two thousand square foot homes are sold from $350 to $375 thousand (or around $175 per square foot) all in, inclusive of land. The builders then decided that in order to make money and increase their corporate financing, they would build bigger homes. Starting in late 1999, prices rose and house sizes were 2,800 to 3,200 square feet. Around this time, I did a seventy-lot former gravel pit, where pricing ran from $399 thousand for a 2,700 square foot colonial to $475 thousand for a 3,400 square foot colonial.  Now, twenty years later, those resales sell for $680 to $800 thousand with no new lots in sight. In my primary area, we have reached build out. There are no longer any fifty to one hundred lot subdivisions, only five to ten lot ones are available from the I-495 area eastward to the sea line of Boston.

New home construction residential land salesIn addition, for the last ten years, builders have taken advantage of a law in Massachusetts called Chapter 40B. This law was created in 1969 to increase affordable housing throughout the Commonwealth. However, it did not get any traction until 2005 or so. This law allowed for an increased maximum density for apartments, as long as twenty-five percent of the units were for people who meet the affordable income limits as defined by the State of Massachusetts. Thousands and thousands of apartments have sprinkled the highways and byways, as this law allows you to bypass local planning boards and apply directly to the State.

While many benefits are apparent, the adverse impact comes on the older two to four family units as they have to compete with sleek new more modern apartments offering dry cleaning services, gyms, pools, and all the other upscale benefits. Demographics within these units are primarily young urban singles or couples, with older divorcees, and a transient population waiting for newer homes in the Central Massachusetts market. Many are buying duplex halves and, now, the communities are putting moratoriums in place as more and more of these units are built. These two thousand square foot duplex halves are selling in the mid to high four hundreds.

However, no one realizes, except the REALTORS®, how the marketplace has changed. The millennials prefer new construction. Most don’t want to have to change storm windows or paint their new homes. They just want to live in a new home with little or no exterior maintenance so they may enjoy their free time. Yet these communities who have implemented moratoriums are crimping their ability to buy new, and restricting the value of the land owners’ equity. You can still buy an ANR lot in western Massachusetts under one hundred thousand dollars, but the access to corporate headquarters and city services is a day trip away.

As for the rest of the Northeast, in every major urban area within thirty-five miles of an airport or big city, land prices and residential land sales tell the same story. Land prices are escalating higher and higher to the point of spiraling out of control. Installing new roads are costing a thousand dollars per linear foot. Remember the seventy lots in Northborough neighborhood? Well, I just sold the eighty-one year old owners last remaining four acres for one million dollars and the builder is getting five ANR lots. Homes of three thousand square feet will start at $750 thousand and we expect them to all sell upon release.

What a difference three decades make. When I attend the RLI meetings I hear similar stories from across the country and realize the truth in the phrase that “The Land Is Under All,” and it’s our duty to protect private property rights. By virtue of our profession, the duty falls on all REALTORS® to fight restrictive zoning and ensure that our elders can retire with the equity they expect and deserve. All of us in the business of buying and selling real estate have an obligation to participate in the public process for new zoning. We have an obligation to be cognizant of all underlying land use and we must defend and protect the ability to adapt our land use to meet the new requirements of the marketplace and the next generation.

For more information on land value trends and residential land sales, check out RLI’s annual Land Markets Survey. Read more on the demand for land and the increase in demand for residential land real estate.

This article originally appeared in the 2017 Summer Terra Firma Magazine, the official publication of the REALTORS® Land Institute.

About the author: Michael L Durkin, ALC, CBR, has been recognized as one of the Top REALTORS® in the country by many of the major companies: Top 300 Coldwell Banker; Top 10 GMAC Real Estate; and Top 80 RE/MAX.  He has twenty-five years’ experience in his office and is an author and former radio host for WTAG. He has served on the NAR Land Use and Property Rights Committee for a total of ten years.

Turning Your Land Into Multiple Sources of Cash Income

Hey Land Owners, What Have You Been Waiting For? Turning Your Land Into Multiple Sources of Cash Income is Easier Than you Think!

We live in the age of AirBnB and VRBO mania. Residential owners across the globe are taking advantage of the need for residential renting opportunities. They post their properties on listing websites like AirBnB or VRBO, and quickly turn their residential properties into piles of instant cash income. Guess what? Land owners can do this too! There is an enormous demand for private land use of various types, in which users are willing to pay. It’s time for landowners to get in on the money making action too.

The demand for private land use across our great nation is nearly immeasurable. Simply put, an exponentially enormous portion of the population has the desire or need to use private land for various purposes. As an example, in addition to being President and CEO of LandLeaseExchange.com, I am also Vice President of Maury L. Carter & Associates, Inc., a land investment and brokerage firm based in Orlando, FL. Our firm and our investors have owned hundreds of thousands of acres over a 50+/- year time frame. We currently have a portfolio of 12,000 acres.

Every year we get hundreds, if not thousands of unsolicited phone calls and email inquiries on the 12,000 acres in our portfolio. These inquiries are from individuals or companies searching for property to lease or rent. Again, it is important that landowners understand just how much demand there is for the leasing and use of land. We DO NOT market our properties for lease, yet we receive all of these unsolicited inquiries from users who are ready, willing, and able to lease a property.

Most of the land in our portfolio that we lease is conducive for production agricultural farming, cattle leases, citrus leases, timber leases, and hunting leases. These are fairly standard land leasing categories, yet they are just the “tip of the iceberg” when it comes to the possibilities available to landowners and how they can turn their land assets into cash revenue. The land leasing market has been identified as an extremely under-served marketplace. What am I saying? There are tens of millions of people in the U.S. that have a need for land, yet there isn’t even a small fraction of land available to them to do so. Enter the private landowner.

On the LandLeaseExchange.com side of things, I have many landowners say to me “John, all I have is (enter amount of land) acres, and there really isn’t much I can do with it to make money.” Really? I beg to differ. Each parcel of land is different and offers its own uses based upon its characteristics. Landowners don’t really need to get too creative, actually. They simply need to take advantage of the land they already own and provide leasing opportunities to users that are conducive to the characteristics of the land owned.

As land owners, we have to think outside of the box. We have opportunities that we take for granted, available to us RIGHT NOW on the land we own, that others are willing to pay to for to experience.

Here is a list of examples I have compiled. Remember, you can lease your entire property, or just a portion. For one use, or for many uses. No property is too big, or too small to turn into cash income.

Agricultural Opportunities

  • Do you have land that you aren’t currently using that could be leased for agricultural purposes? Whatever agricultural use your land is conducive for, the likelihood of someone wanting to use it for commercial agricultural purposes is high. Our website offers listing categories on anything from citrus to peaches to tomatoes to more traditional commodities like soy beans, corn and cotton.

Recreational Opportunities

  • Birdwatching, camping, equestrian, fishing, hiking, hunting, mountain bike trail riding, RV/Motor Home/Camper, Shooting, Off-Road Trail Riding/ATV/Motorcross, Waterfront properties, and more. Recreational use is one of the most desired uses for land right now.

Special Event/Corporate Retreats/Religious Retreats

  • Do you have an old barn you could clean up, hang some lights and rent for weddings or parties? Brides and grooms and party hosts want to create something different and unique while hosting their parties.
  • Corporate retreats – Does your land have activities available? Skeet shooting, hunting opportunities, adequate lodging amenities, meeting areas, etc.? Turn it into a corporate retreat and charge companies to use your property.
    Cabins, Rural Residences, Estates:
  • People want to have a getaway weekend or an experience on a farm, ranch or property outside of the city. Provide the opportunity to them by leasing out cabins, rural residences or estate properties.

Agri-Tourism Sites

  • Now, more than ever, people want the opportunity to get on land, see where their food is coming from, visit the farm and experience something outdoors and have a good time. What type of agritourism can you provide? U-Picks, corn mazes, pumpkin patches, vineyards, petting zoos, Christmas Tree U-Cut, etc.

Communications and Energy

  • Do you have a site that would be perfect for a cell phone tower?
  • Are you located near high tension power lines and you think your property would be good for a solar panel project?
  • What about a road, and your property would be good to lease to a billboard company?

All of the above are ideas on how to turn your land into cash revenue. As a landowner, what are you waiting for? Additional cash income is only a few clicks away!

 

About the Author: John Evans is a 2008 graduate of the University of Mississippi with a degree in real estate finance. A seventh-generation Floridian, he lives in Winter Park, FL, with wife Ann and son Jack, 1. He is Vice President of Maury L. Carter & Associates, Inc and founder, CEO and President of Land Lease Exchange, LLC. which is an online marketing tool that connects landowners to land users.

 

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Proposal Released to Rescind the WOTUS Rule

“Fulfilling a portion of an executive order by President Donald Trump, the EPA and U.S. Army Corps of Engineers have released a proposal to rescind the Waters of the United States (WOTUS) rule that expanded federal jurisdiction under the Clean Water Act.

The proposal published in the Federal Register on Thursday, July 28 would nix the 2015 WOTUS rule and reinstate the definition of the streams and wetlands subject to federal oversight under the act that existed prior to its finalization.” Read more from the NAR article.

new home residential land real estate

An Increase in Demand for Residential Land Real Estate

“Under All Is The Land,” starts the National Association of REALTORS® Code of Ethics. Whether a property is residential, commercial, or of a more rural variety, it all starts from the ground up—literally. With almost all properties needing land on some level, it’s no wonder the demand for residential land real estate continues to grow. As John D. Rockefeller once said “The major fortunes in America have been made in land,” and any land agent would agree that land real estate makes one of the best investments for that reason.

Let’s take a closer look at all the buzz about an increase in demand for residential land real estate. REALTOR® Magazine recently released a piece called “Best Year For New Construction In A Decade?” The article focuses on HousingWire’s prediction that “growing buyer demands will likely spark home builders to construct [more] homes this year than in the last decade.” In addition, the REALTORS® Land Institute released their annual Land Market Survey for 2017 which shows that 25 percent of all closed land transactions over the past year were for residential use. The survey also shows a 5 percent increase in total dollar volume of closed residential land transactions compared to the previous year, meaning the number of residential land transactions are up from the previous year.

residential land real estateEven those in the field are seeing it all firsthand. For example, in the article “The Evolution of Residential Land Sales in the Northeast,” recently published in RLI’s Summer 2017 Terra Firma magazine, expert Accredited Land Consultant Michael Durkin observed “Land prices [in the Northeast] are escalating higher and higher almost to the point of spiraling out of control.” As the demand for land continues to rise, it only makes sense that the prices of land will follow in the affected areas. In fact, RLI’s Land Market Survey showed a 2 percent average increase in residential land prices over the previous year and majority of respondents expect prices to continue increasing over the coming year.

So where are the strongest markets for residential land real estate transactions? The REALTOR® Magazine article points out that “The Midwest and Northeast will likely see the most uptick in new-home construction.” This prediction falls in line with RLI’s Land Market Survey results which show the Northeast leading in residential land sales. Survey participants also expect a three percent increase in residential land sales for the coming year; so, the future is looking bright as well!

All this information may lead one to question, why is there suddenly an increasing number of residential land real estate transactions? Lawrence Yun, the National Association of REALTORS®’ chief economist, explained in the REALTOR® Magazine article that “the increase in new housing would be a much needed relief to the overall housing market” which is currently facing a housing shortage.

Looking at NAR’s “2017 Home Buyer and Seller Generational Trends Report,” Millennials and Gen Yers make up 34 percent of home buyers and are currently driving an increased demand for affordable housing. On the other hand, Baby Boomers are the second largest group of home buyers making up 30 percent of recent buyers. The report also shows that overall 14 percent of buyers opted for a new home versus a previously occupied one, an increase over the previous year adding to the demand for residential land real estate.

In the end one thing is for certain, as the demand for more housing continues to grow, it only follows that the demand for more land will track up with it as will land values.

The annual REALTORS® Land Institute and NAR Research Land Markets Survey is a tool for land real estate professionals, owners, and investors across all sectors of the business to use for bench-marking and as an informational resource when conducting business. View the full survey here. Read more on this topic from REALTOR® Mag in their follow-up piece on this post “The Demand for Land Widens.”

Jessa Friedrich, Marketing Manager, REALTORS Land InstituteAbout the author: Jessa Friedrich, MBA, is the Marketing Manager for the REALTORS® Land Institute. Jessa has a Bachelor of Science with a dual major in Business Administration and Marketing as well as a Masters of Business Administration in Marketing with a specialization in Social Media. She has been with RLI in the land real estate industry for two and a half years and manages all matters pertaining to marketing and communications for the organization. In her role, she is dedicated to promoting and enhancing the valuable benefits of an RLI membership to the land real estate industry and ensuring RLI continues to be “The Voice of Land.”