Checklist for Success

How many of you are the backbone of your Company’s entire operation? In fact, you are probably your entire operation: a solo agent prospecting for new leads, writing offers, conducting listing appointments and buyer consultations, negotiating contracts, giving sellers marketing updates, ordering surveys, determining utility locations, marketing your listings, handling your social media and overall, handling the entire transaction from listing to closing. In fact, you probably have to make your own coffee and try to manage a database and a family. WHEW, it’s a lot!

Have you ever felt as if you’re juggling too much, perhaps, you’re even struggling to keep up? Ever wished that you were in a position to hire an assistant to support you with the never-ending stream of administrative tasks? Have you determined that you’re not quite ready for that next step but desperately need some help staying organized and efficient? I feel like this is an incredible place to start. Not only will it help you stay organized, it will create a workflow that can be duplicated and passed on. Now is a great time to consider implementing systems and processes that can later be handed off as you grow. In order to do so, you have to write down what has to be done before you can hire someone to do it.

In order to move from a solo agent to a team, you must build systems that will keep your company operational and functioning in a smooth, systematized and efficient manner. In addition, when you finally hit your breaking point and hire an admin, you can share these systems and train your team by simply going over your documented processes. If you’re a real champion and want to grow your business exponentially, I would personally recommend going through the utter discomfort of hiring a business coach. I would recommend someone like Mike Ferry Organization, Tom Hopkins International, or my personal favorite, Icenhower Coaching and Consulting.

A coach can help you organize your business, determine when to hire staff members and how to grow. It is uncomfortable; however, I want to illustrate the type of systems the discomfort introduces. Below you will find Ary Land and Home’s Listing to Contract Checklist. My team and I have developed this over time while working with our coach (Icenhower Coaching and Consulting). See below.

 

Date Completed Date Requested
Admin intro call to sellers – immediately after listing signed
Receive signed listing agreement
Create PROPERTY FILE CHECKLIST
Obtain all signed & completed sellers disclosures
Obtain showing instructions from agent/sellers, Gate Code? Combo?
Verify Aerial is accurate with salesperson
Put seller on MLS listing auto-alert email drip for LAND OR HOME to buy
Put seller on MLS auto-alert drip- MLS status changes 1 MILE RADIUS FROM LAND
Ask Seller for utility companies, call and get sizes of lines in front of prop
Order preliminary title report, HOA Documents & CCRs if HOME
Order Signs? Let Trish know what’s used for sign inventory
Add sellers to admin weekly update call list
Add sellers to agent’s weekly update call list
Ask to Enter listing into MLS as incomplete for agent to proof
Assign lock box to MLS listing
Add client to CRM database
Add new listing to Team Scoreboard
Submit listing contract/disclosures in to DotLoop for compliance
Get MLS listing edits/approval from Agent
Upload MLS Client Detail Report to property file
Email MLS Client Detail Report to all team members
Add/Enhance Listing on LandWatch LOA and LandBrokerMLS
Calendar Listing Expiration Date
Prepare property flyer
Create “Just Listed” Facebook & social media posts
“Just Listed” mailers/flyers created & ordered
Add clients as friends on Facebook/Social Media
Claim listing on Zillow/Trulia & set up reporting
Sign up at property
Flyers delivered to property
LISTING GOES LIVE ON MLS  
Send Thank You/Gift Card to Person who Referred Listing
“Just Listed” email to neighborhood & SOI
“Just Listed” posted on Facebook & social media
Call to sellers for PRICE REDUCTION APPOINTMENT?
Weekly Activity Report Call to sellers
Email Activity Report to sellers
ONCE OFFER(S) RECEIVED  
Prepare summary(s) of key offer terms to present to sellers
ONCE OFFER ACCEPTED – Start Property File Checklist  

 

*Please note that you need to go through the checklist, there are some things that will not apply to your situation.

Can you picture yourself using this checklist? Can you imagine what it would be like to know that all of your files are “where they need to be?” Fundamental organization and structure is essential.

The main goal in writing this Blog is to help novice agents understand that developing routines and establishing work flows is essential to running a successful real estate company. Even though you may feel like you are too far gone, YOU CAN turn chaos into order and whip things into shape. These processes will 1) make your life as an agent easier and less stressful, and 2) create and maintain seamless systems that can be duplicated to keep the business running so that you can focus on growing your business.

With that said, I urge you to sit down and go over the above Listing to Contract Checklist and make it yours. Don’t stop there, make a Contract to Close Checklist, a Seller Closing Checklist, and a Buyer Closing Checklist and just keep going. Don’t make the checklists just to make them, make sure you implement them and go over them weekly. Make a checklist of what needs to be done on every file and eventually you will be able to hire someone that can make sure the items are checked off for you. I know it will be painful and you will grow to the extent of pain you can handle!

On another note, if you are looking to hire someone and you are not sure exactly what they are supposed to do, keep reading. Below is a sample Listing Manager’s job description.

  • Oversee all aspects of Seller’s transactions from initial contact to executed purchase agreement.
  • Prepare all listing materials: pre-listing presentation, Listing Agreement, sellers’ disclosures, comparative market analysis, pull online property profile, research old multiple listing service (MLS) listings and etc.
  • Consult & coordinate with Seller’s all property photos, surveys, repairs, cleaning, signage, lockbox, access requirements & marketing activities.
  • Obtain all necessary signatures on listing agreement, disclosures and other necessary documentation
  • Take property phone calls and monitor Agent emails.
  • Coordinate Buyer showings & obtain feedback.
  • Provide proactive weekly feedback to sellers regarding all showings and marketing activities.
  • Coordinate all agent meetings and remind Agent of important dates.
  • Input all listing information into MLS and marketing websites and update as needed.
  • Submit all necessary documentation to office broker for file compliance.
  • Input all necessary information into client database and transaction management systems

Again, when I got into real estate, I knew how to sell Farms. I did not understand how to run a business. None of this comes natural to me, however; it has changed the way our business operates. In fact, I no longer say “only I can do it” or “no one will do it as good as me.” That is a scarcity mindset and you have to realize that if you are saying that right now, it’s because “how to do it is not written down,” as our great leader, Gary Keller, would say. It took me a long time to realize this and if it weren’t for Kasey Mock taking the time to explain how important a business foundation is, I sure wouldn’t be where I am at today. With that said, my challenge to you is to start to document the things you do and create checklists to make sure they are done on every file. Make it a priority! Call me if I can help!

This post is part of the 2018 Future Leaders Committee content generation initiative. The initiative is directed at further establishing RLI as “The Voice of Land” in the land real estate industry for land professionals and landowners. For more posts like this, click here

About the Author: Drew Ary, ALC, is an agent with Keller Williams Advantage. Drew has a vast knowledge of raw land, land with improvements, and farm and ranch properties. Above all, he has a passion for selling land and farm and ranch properties by bringing buyers and sellers together through honesty and integrity. Drew spent 10 years in the real estate auction world with roles as a Closing Coordinator, Project Manager, and a large portion as the Director of Farm & Ranch Sales. Drew moved to traditional real estate with Keller Williams Advantage at the beginning of 2017.

September 2018 Land Sales Summary

Based on data shared through the Lands of America Comparable Sales Program in September 2018, there were 161 properties listed as sold by REALTORS© Land Institute Members. This represents approximately $62 million and 25,000 acres of land and rural real estate sold across 26 states, the most active being Texas, Illinois and Georgia. September 2018 sales activity by REALTORS© Land Institute Members participating in the program decreased by 24 percent over the previous month and 7 percent compared to sales volume from the same period in 2017.

Congratulations to Peoples Company’s Jared Chambers, who was the agent representing the sale at auction of two South Dakota cattle ranches totaling a combined 8,075 acres. The month’s largest recorded land sale by REALTORS© Land Institute Members participating in the Lands of America Comparable Sales Program, these properties were auctioned for an undisclosed sum. These ranches sit in the heart of western South Dakota’s ranching country close to the small town of Faith.

The most expensive land sale recorded in September by REALTORS© Land Institute Members participating in the Lands of America Comparable Sales Program was the $5.3-million sale of a large dairy farm in south-central Florida by Benjamin E. Crosby, ALC, of Crosby & Associates, Inc. The Winter Haven, Florida-based brokerage, in business since 1983, specializes in commercial and agricultural land sales in the Southeast, particularly Florida.

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The Lands of America Comparable Sales Program includes over 260,000 individual sales records dating back to March 2000. The program was put together to offer one centralized, nationwide location to assist in valuating properties. Sales information is shared on a voluntary basis by individual program participants. Please click here to learn more about participating in the Lands of America Comparable Sales Program.

Finding Your Niche

The word “niche” has several definitions, but for the purpose of this article, we’ll be using the definition from dictionary.com that means “a distinct segment of a market.”

At National Land Realty, we have land professionals across the country who have their own “niches” or specialize in certain areas of the land industry such as forestry, auctions and prescribed burns, among many others. This not only helps them serve their clients better but gives them the opportunity to help other agents help their clients in that particular area. It also helps them stand out amongst the competition!

If you’re a land professional who doesn’t already have a niche, don’t worry, there are many areas you can choose from. The list is truly endless, but what it’s really about is finding something you’re passionate about. As corny as that may sound, there is so much truth in it. Finding what you enjoy, what you see yourself still being passionate about five years from now will make all the difference.

Finding your niche also depends on the area you live and serve in. For example, timber properties are mostly found in the Southeast region of the U.S. Therefore, you probably wouldn’t want to specialize in forestry if you’re a land professional based out of Arizona.

Here are some other examples of areas to specialize in:

  • Pond management
  • Wildlife management
  • Farm management
  • Agriculture
  • Solar development
  • Commercial development

If you’re ready to find your niche, start by jotting down areas you’re experienced in or have had a close interaction with. Think about any subjects you’ve taken classes on in the past that you found interesting or feel knowledgeable in. It’s really just that easy to get started!

National Land Realty is a full-service real estate brokerage company specializing in farm, ranch, plantation, timber and recreational land across the country. NLR currently represents land buyers and sellers in 20 states. To learn more, visit www.nationalland.com.

The Next Generation of 1031 Exchanges

I am a big fan of old western movies. Regardless of the movie, either a cowboy or the 7th Cavalry always came to the rescue at the last moment to save the day. Predictably, one of my favorite actors is John Wayne. Whether he was chasing the bad guys in the old west, defending the Alamo, winning the Civil War, fighting the Japanese at the Battle of Midway or fighting our enemies at D Day, he always seemed to come to the rescue. That’s what I loved about him and I always wished that in some way, I could do the same.

As a tax expert, now I can. I may not be saving Shinbone from Liberty Valance or Europe during WW2 but I can come to the rescue when a property owner is going to sell a property that will create a large tax liability. That works for me. And for you.

When selling a great property, you can either pay taxes on the gains or transact a 1031 exchange to defer taxes. The first isn’t a good option and the second is not always appropriate or has limitations to be completed.

But here is where a tax expert can come to the rescue. There are numerous ways to defer taxes using the next generation of 1031s. Our Section 453 tax deferral strategies have a 20-year track record of successfully deferring taxes between 2000-2500 times with the largest transaction being $120 million with a tax deferral of $50 million.

If someone wants to transact a 1031 exchange and can complete it that’s great. To be on the safe side, we can guarantee that if a 1031 fails, the sales proceeds will NOT be sent to the seller which now creates a large tax liability but rather that taxes will be deferred, and the client now has unlimited time to find a replacement property.

Consider the following examples.

One of the main limitations in an exchange are the 45 and 180-day time periods. Supply of real estate properties can be elastic.   Sometimes there is a great supply of replacement properties and sometimes there isn’t. What if there were no time constraints to have to deal with.

What if you could sell a property today, defer taxes today and have unlimited time to find a great replacement property. Would that work? Absolutely.

But let’s take that thought to the next level. When transacting a 1031, you buy low and sell high but because of the 45-day period, you may have to buy high when market conditions may be less than favorable to your buyers. What if after you sold high, you had unlimited time to buy again so you could wait until market conditions became more favorable to buyers. Would that work?  Absolutely. And even better, while your buyer is waiting for market conditions to become more favorable, we will pay him a cash flow of 5-6% while he waits. So, using the next generation of 1031 s, you can buy low, sell high and buy better.

Say you have 4 owners of a property and all the owners want you to list their property BUT 2 of the owners want to take their proceeds and run to Vegas…not necessarily a bad strategy and the other 2 want to defer their taxes. Until you get everyone on the same page, you can’t list the property. Get your paperwork ready. The 2 that want to take the money and run can do so and the 2 that want to defer taxes can use our proprietary trust to do so. You get the listing and you owe me lunch. Preferably in Vegas.

Say that there is a property owner that has had a property in the family for 50, 60, 70 years or longer. He would like to sell but almost the entire sale will be capital gains and depending on where he is domiciled, taxes can range from roughly 25-40% so instead of selling, he decides to keep the property until he passes on and then his kids get the property with the stepped basis.

That’s not a bad strategy for everyone but you because you now can’t sell the property. Instead, what if you could explain to the prospect that you can sell today, defer taxes today, move closer to the grandkids today and receive a higher retirement income than if he sells and pays taxes first. And he can do all of this while alive.

You have a client that has transacted 1031 exchanges for decades and now that he has accumulated wealth, he would like to sell and retire. Unfortunately, he now has to sell and use the basis of the first property to determine taxes and the tax bill will be a whopper.

What if you have a 1031 Exit Strategy. That’s right. By using our trust, he can sell his property and defer taxes for the rest of his life and into the next generation if he chooses to do so.  By deferring taxes, he can enjoy the fruits of his labor by receiving a larger retirement income than if he would have sold and paid taxes first. You are his new best friend.

One last idea. Say that you come across someone that has a high end primary residential property and they want to sell. However, the sale will create a large tax liability to the sellers. You can sell their residence, defer taxes using our trust and help them buy another property any time in the future. That’s a great deal for them and you made a new friend.

These are just a few of our tax deferral strategies so make sure to call an expert in conducting 1031s to come to your rescue. John Wayne would be proud. It shows True Grit. I can’t believe that I typed that. Until the next time, Happy Selling.

David Fisher is the managing partner for Creative Real Estate Strategies, a national firm that can defer taxes on highly appreciated real estate when a 1031 isn’t appropriate or can’t be completed. He has been an RLI sponsor since 2006 and has sponsored over 40 RLI events nationwide. He can be reached at 713-702-6401 or david@cresknowsrealestate.com.

 

Gathering and Verifying Comparable Sales for Rural Land

As a rural land appraiser, comparable sales are the “life blood” of my business. Of the three common methods for appraising – cost, income, and market data – I tend to use the market data approach the most often both as an appraiser and as a real estate broker. This method allows me to gather reliable and verified comparable sales which are both vital for pricing and appraising properties.  Here are a few ideas on how to do this in your rural land markets:

Sources for Comparable Sales

Networking with Market Participants

Talking with local market participants has proven to be the best way I have found to locate sales. Whether you are at the local restaurant eating lunch or at an agricultural trade show, you should always keep your “ears to the ground” for recent land sales. You may hear these sales in conversations with farmers, foresters, buyers, sellers, bankers or other individuals.  When you hear mention of a sale that you do not have in your database, be sure to listen closely and ask questions if the timing is right always being courteous of others’ time and privacy. If someone seems as if they don’t want to talk about the sale, respect that and try to do further research elsewhere such as utilizing probate records or having conversations with other brokers or appraisers involved.

Company Sales

My best sales are by far the ones where one of our company’s representatives (myself or another broker) is involved.  These internal transactions can almost always ensure that great data will be gathered to verify a sale considering that we should have all of the maps, closing statements, contact information and other necessary data readily available.

Multiple Listing System (MLS)

MLS is a great tool to utilize in your search for comparable sales in more populated areas (considering I appraise and sell land in rural south Alabama, I do not have the opportunity to utilize it often).  Further detail verification of the transaction and property will be necessary since MLS’s are geared towards Residential Real Estate but it’s an excellent “starting point,” if available.

Other Appraisers and Brokers

It is imperative to keep a good working relationship with appraisers and brokers in your market area if you want good data on comparable sales. I have made many great friendships by sharing and receiving comparable sales with other appraisers. I met several of these appraisers at various American Society of Farm Managers and Rural Appraisers (ASFMRA) events. After meeting other appraisers in my area, I always try to follow up by phone call or email to remind them to let me know if I can ever help them with comparable sales in my area. Many of these appraisers have sent work to me when they were either too busy or had a conflict of interest. “Friendly Competition” in the appraisal world is something that we must continue to work towards.

Verifying Comparable Sales

It is always best to speak with someone directly related to the transaction to verify a comparable sale. Of course, if you live in a “disclosure state” you can find items like: purchaser, seller, closing date, legal description and purchase price on the deed at the local probate office. However, in most cases there are other items that make up the purchase price that must be researched further. When verifying comparable sales, I almost always start at the probate office to verify that the sale actually closed, print a copy of the deed so that I have it for my records, and look up the property on the county tax map to verify its location. I will then try to contact someone directly involved with the transaction to determine items such as: improvements located on the sale and their contributory value, timber value, long term leases and their contributory value, equipment or livestock included with the purchase, just to name a few. I find it is most beneficial to speak with buyers, sellers, and agents involved with the transaction. More times than not there will be two sides to the story which you must reconcile to determine the true makeup of the items involved with the sale.

Comparable sales research is something that will make you a better real estate broker or appraiser. I believe you never can know “too much” about your local land market. Knowing your market will help you competitively price land which is ultimately helps it sell quicker, this “hands on” approach of digging through sales will likely introduce you to valuable market participants with great lead potential that you otherwise might not have met in your everyday professional life.

This post is part of the 2018 Future Leaders Committee content generation initiative. The initiative is directed at further establishing RLI as “The Voice of Land” in the land real estate industry for land professionals and landowners. For more posts like this, click here.

About the author: Calvin Perryman, ALC, is an Associate Broker and Appraiser with Great Southern Land. Calvin is an active member of RLI, serving on the 2018 Future Leaders Committee and as the 2018 President of the RLI Alabama Chapter. He graduated from Auburn University with a Bachelor Degree in Agricultural Business and Economics in May of 2011. Shortly after graduating from Auburn he obtained his real estate license and has been in the real estate business since 2011.

Adding Recreational Value to your Property

The majority of the buyers in my market are typically looking for properties with two characteristics: timberland for an investment and hunting for recreation. However, there aren’t many properties that ideally fit both characteristics. Sometimes I scratch my head, wondering why there aren’t more people willing to play the role of a developer and convert timber tracts into recreational retreats for profit. While it’s rare for an established hunting retreat to hit the open market, the properties that do, usually justify their price premium and get purchased quickly.

Timber real estate investment trusts (REITs) and investors are realizing that recreational value on many properties is now exceeding the timber value, which in turn justifies selling the property for a substantial profit. While there are many different ways to add recreational value to a property, I’ve decided to focus on one particular property, as it’s a great example. The main goal behind the property is continuing to operate a pine plantation for investment purposes, however, have the means to hunt, fish, and enjoy the property recreationally year-round. Here are some ways this property was able to achieve this goal:

1. Created Food Plots

While it does take some time and money to prepare a food plot, the end result will benefit wildlife and keep them on your property.  This requires cutting timber, removing the stumps, liming and fertilizing the soil, and figuring out what and when to plant. The majority of these food plots are on the edges of hardwoods. This one, in particular, has been low fenced to keep the hogs out.

2. Built A Dove Field

Having a great dove field is a great way to host guests, family, and friends for entertainment. It’s a fun social event you can put on several times a year. This dove field has all the makings for being successful including a fake power line and trees for the birds to roost, water to drink, sand/gravel, and approximately 12 acres to plant.

3. Created A Duck Impoundment

Since this property sits along the eastern flyway, this duck impoundment is ideal to attract passing ducks. This impoundment is planted in June and the water level is manually controlled through a flashboard riser. The owners are able to enjoy it from early teal season in September, all the way to the end of the season in February.

4. Created Quail Habitat

This required thinning the trees back to 35-50 trees per acre. A skid steer with a grinder ate up a lot of the long-abandoned understory before Garlon (Triclopyr) was sprayed to prevent hardwood growth. These fields were burned using prescriptive fire in late February. Continuing to burn every one or two years will keep this stand clean and provide great habitat for all wildlife.

5. Building A Fishing Pond

This pond was started almost a year ago. The owners were able to reach a mutual agreement with a local contractor and the Department of Transportation. The agreement allows the two parties to have free rights to the dirt in order to finish converting a nearby roadway from two lanes into four. Once completed the landowners will have a 17.5 acre stocked pond to enjoy year-round fishing.

6. Starting A Garden

Establishing a garden requires a lot of work. However, it is very enjoyable to be able to eat what you have grown. This garden contains a mixture of fruit trees including blueberries, blackberries, peaches, limes, nectarines, oranges, apples, pears, and grapes. It also has a seasonal section that is currently planted in corn, squash, cucumbers, peppers, okra, bush beans, cantaloupes and watermelons.

While there are certainly several other recreational aspects to add to a property, I thought this property did a great job of highlighting many of them and a great example of maintaining a timber investment and year-round recreational enjoyment.

Interested in becoming an expert in recreational land transactions? Check out the RLI’s Recreational Land Real Estate LANDU course.

This post is part of the 2018 Future Leaders Committee content generation initiative. The initiative is directed at further establishing RLI as “The Voice of Land” in the land real estate industry for land professionals and landowners. For more posts like this, click here.

About the Author: Tommy Stroud Jr., ALC, is a broker with National Land Realty Tommy has served on the REALTORS© Land Institute Future Leaders Committee since 2016. He holds the esteemed Accredited Land Consultant Designation (ALC) and has an active real estate license in the states of Georgia, Florida, and South Carolina. Tommy lives in St. Simons Island, GA, with his wife and two children.

How To Pick The Perfect Agent for Your Land

You’ve found the perfect property to buy, sell, invest, or manage. There’s only one thing missing — the agent. Finding the right agent can be harder than finding the right property. Land transactions require specialized expertise so it is important to do your research when choosing an agent. Here are some tips to find the best real estate agent to help with your land real estate transaction.

1. Go Beyond Google

Google can be a great place to start, but there are many land-specific search engines, such as Find a Land Consultant that will tailor your search for your specific need and ensure you find a qualified agent.

What’s great about the Find A Land Consultant Tool search tool is that you can pick and choose exactly what you need for your land sale or purchase. You can select service specialties, such as conservation easements, investment management, tax deferred 1031 exchanges, and mineral rights, using the ‘Advanced Search’ functionality. You can also search for agents who specialize in ranch land, residential or commercial land, vineyards, farmland, timberland, and more.

2: Expertise

Nothing beats boots-in-the-dirt experience. It’s the best way to know the ins and outs of the industry. Someone with years of experience under their belt will know what common issues to look out for and the tricks of the trade to get you the best sale possible.

Looking at an agent’s expertise and history in land, especially if that experience is in doing transactions for your type of property, also lets you know if they are the right fit for you. There are many agents who have years of experience but still may not be right for handling your transactions.

For example, say an agent has spent 25+ years strictly selling massive commercial properties, and you have a 20-acre ranch. Even though the agent has decades of experience and probably is great at what he or she does, chances are you’ll want to work with a different agent. Take a look at their website and other listings or give their office a call to get a sense of what their strengths are and if they fit your needs.

3: Designations Matter

Achieving any designation requires time, hard work, and money. Almost every designation also requires continuing education to keep up with the latest in land news, laws, tech, and more. This is a guarantee that the agent will be up-to-date on all things land.

Jonathan Goode, ALC (who, by the way, specializes in agricultural/farmland, commercial land, and appraisals, just to name a few!) knows how important designations are in the land industry.

“These agents are demonstrating that they take seriously their commitment to excellence in their profession. Having these designations may not mean much to potential buyers, but it does show that they have worked hard to gain knowledge and proficiency in the discipline of land. Agents that are Realtors® have agreed to operate by and be bound to a Code of Ethics, which helps protect landowners in land transactions,” he said in a guest post for LandThink. They are also certified to have a high level of expertise in various aspects of land due to their completion of a rigorous education program, like RLI’s LAND University.

4. Marketing and Visibility

How an agent markets their property is important. Check out their websites and other listings. If you see their listings have been sitting on the market for a while, chances are yours won’t be flying off the shelves.

You’ll also want to think about their visibility. Do their listings show up during Google searches, or do you need to dig through pages before you find them? Do they have an active and engaged following on their social sites? Is their website updated regularly? Do they use drone video and high-resolution photos to market the properties?

“Pay close attention to how well an agent markets their listings online,” says Goode. “Recent statistics show that over 80% of buyers preview properties online before getting in their car and driving to look at land. You will get an idea about how much effort an agent will put into advertising your listing. Will your land be visible to potential buyers? It needs to be in this market so that ALL possible buyers are aware that you have a quality piece of land for sale.

5. Ask Questions That You Couldn’t Find Answered On Their Website

Most agents have almost everything you need to know on their website. You can find:

• how long they’ve been in the industry
• testimonials
• credentials
• specialties
• location
• listing examples
• And more in just a few simple clicks.

If you aren’t able to find those answers online, ask when you call them. You’ll also want to ask questions about your specific property and what their rates are.

The right agent will get you the best price for your land and smooth out the complicated process of buying and selling land. There’s a whole world of agents. Make sure you work with the best in the business – Find A Land Consultant near you to get started!

About the Author: Laura Barker is a freelance writer based out of California for the REALTORS® Land Institute. She has been with RLI since October 2017.

What You Need To Know to Make Taxes Less Taxing

This guest post was originally posted on National Land Realty‘s blog.

Disclaimer: This article is not intended to be construed as professional tax advice, always consult with your tax or financial advisor for additional information on how this will impact your personal or business tax situation.

As Margaret Mitchell wrote in Gone With The Wind: “Death, taxes, and childbirth! There’s never any convenient time for any of them.” Land experts know how draining taxes can be.

The taxes associated with land sales are complex, and as soon as you feel like you’ve got a good grip on them, tax laws change! Even with the many changes that happen, there are some things that are set in stone. In this article, we take a look at the backbone of land taxes.

1031s Are Your Best Friend

Instead of paying taxes on the sale, 1031 exchanges let you invest the proceeds of your sale into a like-kind property. You can defer paying federal and state capital gains taxes.

If you’ve sold land before, you are probably familiar with using 1031s for land sales. But did you know that you can also sell conservation easements, water rights, development rights, and more while deferring taxes as well? This can save you hundreds or even thousands in tax dollars.

Although 1031s are an amazing resource for land buyers, there are strict rules about which properties do and do not qualify for this program. Be sure to check with a local land expert to see if your property qualifies before selling. You can also get started by reading through some official guidelines from the IRS.

Unique Tax Rules For Different Kinds of Land

Different land types come with different benefits and drawbacks.

  • Timberland: Each state taxes timber differently. For example, in Texas, timberland property is taxed by the appraised value multiplied by the tax rate. In Massachusetts, the tax is five percent of fair cash value, plus an enrollment fee and eight percent yield tax. To check your state’s unique rules, check out this handy website.
  • Vineyards: Small-time vineyard owners could be entitled to a sweet tax credit for making American wine. This Title 27 credit applies to producers who make under 250,000 gallons of wine a year in America. You can get up to a nine percent tax deduction. Bottoms up!
  • Agriculture: The most recent tax bill made many changes favorable for agriculture. Starting in the 2018 tax year, farmers can immediately write off up to one million dollars of capital purchases such as breeding livestock, farm equipment, and single-purpose structures.

Capital Gains Tax

A capital gain is defined as a profit from the sale of property or of an investment. This gain is taxable at the state level and the federal level.

This is where capital gains gets tricky. Each state has its own rules. In states like Texas or Nevada, you can expect to pay around twenty-five percent. In California or New York, you can expect to pay upwards of 30 percent! Here’s a tool from SmartAsset that can help you get a rough estimate of what you can expect to pay.

How High Are Capital Gains Taxes in Your State?

https://taxfoundation.org/how-high-are-capital-gains-taxes-your-state/

No one enjoys paying taxes. But having a solid sense of the fundamentals of land taxes can help you save your hard-earned money and make you (and your clients!) the most profitable deal possible. 1031 Exchanges are such a dense topic that we can’t possibly cover all there is to know in this article. If you’re a land pro and you’d like to learn more about helping your clients take advantage of 1031s, check out RLI’s November VILT-online course: Tax Deferred 1031 Exchanges. If you’re a landowner looking to learn more about how your property can benefit from these, make sure to contact a land expert near you to learn more.

About the Author: Laura Barker is the Membership and Communications Specialist for the REALTORS® Land Institute. She graduated from Clark University in May 2017 and has been with RLI since October 2017.

 

land sales

RLI Member Land Sales Summary | August 2018

Based on data shared through the Lands of America Comparable Sales Program in August 2018, there were 212 properties listed as sold by REALTORS© Land Institute Members. This represents some $155 million and 30,000 acres of land and rural real estate sold across 24 states. August 2018 sales activity by REALTORS© Land Institute Members participating in the program increased by 13 percent over the previous month and 7 percent compared to sales volume from the same period in 2017.

Largest Size Land Deal

Congratulations to HomeLand Properties’ Andy Flack, ALC, in Huntsville, TX, whose sale of 3,132 acres in East Texas’ Tarkington Bayou was the month’s largest recorded land sale by REALTORS© Land Institute Members participating in the Lands of America Comparable Sales Program. Andy also recorded the month’s most sales, with 13 sold properties at a combined sales value of $13.9 million.

Andy Flack, ALC, property SOLD

Highest Dollar Volume Land Deal

First listed in August 2016, the most expensive land deal recorded during August 2018 was the sale by Pearson Realty’s Dan Kevorkian, ALC, in Fresno, CA, of a 1,509-acre investment-grade pistachio orchard in Central California. First planted as an experimental crop in California in the 1930s, the Golden State is now the world’s largest producer of these tasty and healthful nuts. The orchard was listed as sold for $43.6 million.

Dan Kevorkian, ALC property SOLD

The Lands of America Comparable Sales Program includes over 260,000 individual sales records dating back to March 2000. The program was put together to offer one centralized, nationwide location to assist in valuating properties. Sales information is shared on a voluntary basis by individual program participants. Please click here to learn more about participating in the Lands of America Comparable Sales Program.

national land conference

Answering Common Questions About RLI Membership

“Why do I recommend land professionals join the REALTORS® Land Institute? Simple, it makes you money!” –  George Clift, ALC, Clift Land Brokers

We got such great feedback from our article Answering Common Questions About the ALC Designation that we thought we’d do a follow-up article about RLI Membership. We get dozens of calls every week about membership benefits, costs, and networking. Membership numbers have been on the rise, so we thought this would be the perfect time to answer the most common questions about an RLI Membership.

Q. Why should I become a member?

Becoming a member of RLI unlocks a lot of great tools and discounts for land agents. Membership includes:

  • Savings of $200 per LANDU course with exclusive member rates (excluding chapter and Land 101 independent study courses).
  • A personal profile in the Find a Land Consultant online search tool/member directory to be found by clients and other agents.
  • Access to a national network of over 1,300 land professionals.
  • Access to exclusive resources like a contract library, technology + services recommendation center, and a marketing kit filled with tips and advice.
  • Ability to apply for the prestigious APEX Production Awards
  • A subscription to the biannual Terra Firma Magazine.
  • And more! Check out the full list of member benefits on our website.

Q. What EXACTLY are the costs of becoming and staying a member?

The cost to become a member can vary depending on the month you join (we’ll go more into that in the next question), but a full year’s membership costs $445 plus a one-time $75 application fee. The annual renewal fee is $445.

 Q. Why does it cost different amounts to join at different points in the year?

If you looked on our website, you might be confused as to why joining in September is so much more expensive than joining in August. Our pro-rated dues schedule determines when your membership will expire and when you will need to pay renewal dues.

If you join between January 1 and August 31 of each year, your dues will be prorated through the end of the current year. If you join between September 1 and December 31, your dues will be prorated to include the rest of the current year as well as through December 31 of the following year.

The one-time application fee of $75 doesn’t change.

 

Q. I’m working towards my ALC Designation. Is it more or less expensive to be a member?

We’ve run the numbers. Long answer short, having an RLI Membership while working towards the ALC Designation will more than pay for itself in savings on courses. Plus, you get the added benefits of an RLI Membership.

If you are working towards the ALC with a membership, the total cost of six online courses ($535 per each of the five 16-hour courses plus $750 for the 24-hour Land Investment Analysis) at the member rate (a savings of $200 per course) equals $3,425.

For the course work alone, they average ALC applicant will save about $1,200. Take out the cost of membership and the one-time application fee and you’ll still come out ahead in savings plus you’ll be able to take advantage of all the other property marketing, networking, and resources that are included as RLI member benefits.

Even when you add in membership costs and the one-time application fee, getting the membership will save you money in the long term.

Note: class prices are subject to change. For the most recent course pricing, see the individual course registration pages.

Q. How does RLI promote its members and give them exposure to get more clients?

We’re dedicating an entire October blog post to all the ways RLI promotes its members, so we’ll save the in-depth descriptions for that, but here are some of the main ways that we promote our members:

  • Ads in top industry publications, including The Land ReportLAND Magazine, Farm and Ranch Magazine, NAR Commerical Connections Magazine, the Wall Street Journal, Open Fences Magazine, and the TerraStride HuntStand app.
  • Host the Find A Land Consultant search tool
  • Write guest posts for top industry websites such as LANDTHINK, Land.com, and National Land Realty that highlight the benefit of working with ALCs and RLI members.
  • Run digital ads on Facebook and other industry websites
  • And so much more. Keep an eye out for our October article covering the many ways RLI promotes its members!

Additionally, we encourage all of our members to harness the power and prestige of the RLI brand by promoting themselves as RLI Members. We even have a member logo for our members to use on their marketing materials to help create awareness in their local markets.

 

RLI Membership is an endlessly helpful tool for land experts that continually provides value to its members. If you don’t believe us, ask the members themselves! These glowing reviews are just a few examples of how land experts used their membership benefits to become the best in the industry. As George Clift, ALC, once said “Why do I recommend land professionals join the REALTORS® Land Institute? Simple, it makes you money!”

If you have more questions about membership, contact us at 1-800-441-5263 or rli@realtors.org. Ready to join RLI? Simply fill out the online membership application today!

About the Author: Laura Barker is the Membership and Communications Specialist for the REALTORS® Land Institute. She graduated from Clark University in May 2017 and has been with RLI since October 2017.