Confessions of a Land Pro: Andy Flack, ALC

Have you ever wondered how the best land brokers got to the top of their game? “Confessions of a Land Pro,” a new series from the REALTORS Land Institute’s Future Leaders Committee, aims to answer that question. Featuring interviews with top producers from various regions and markets, “Confessions of a Land Pro” uncovers the journey to the apex of an ever-changing industry.

Our second installment features Andy Flack, ALC, principal/broker of Homeland Properties in Huntsville, TX, in conversation with Clayton Pilgrim, ALC, land specialist at Century 21 Harvey Properties in Paris, TX.

Watch or listen to the episode & learn about Andy’s highly successful career in land. Whether you’re just getting started in land real estate or you’re a seasoned agent with years of experience, we hope you can gather some nuggets of wisdom from “Confessions of a Land Pro.”

More “Confessions of a Land Pro”:

 

Introducing “Confessions of a Land Pro”

 

Have you ever wondered how the best land brokers got to the top of their game? “Confessions of a Land Pro,” a new series from the REALTORS Land Institute’s Future Leaders Committee, aims to answer that question. Featuring interviews with top producers from various regions and markets, “Confessions of a Land Pro” uncovers the journey to the apex of an ever-changing industry.

Our first installment features Bill Eshenbaugh, ALC, founder and president of Eshenbaugh Land Company in Tampa, Florida in conversation with guest interviewer Ryan Sampson, ALC, Principal of Eshenbaugh Land Company. Bill began his brokerage nearly 30 years ago, and since then has sold tens of thousands of acres and done more than $1 billion in land sales.

Watch or listen to the episode & learn about the ups and downs of Bill’s highly successful career in land. Whether you’re just getting started in land real estate or you’re a seasoned agent with years of experience, we hope you can gather some nuggets of wisdom from “Confessions of a Land Pro.”

Protect Your Land Privacy With Trail Cameras

Owning a large plot of land can give you more privacy from the outside world. In return, the larger your property is, the harder it is for you to monitor it. Features like wooded areas, hills, and valleys can make monitoring even more difficult. Hanging ‘No Trespassing’ signs and conducting regular inspections will help protect your land privacy, but those options have obvious limitations. Trail cameras give you an option to monitor your property remotely in real time.

Reasons You Need Trail Cameras for Land Privacy

Trail cameras give you a way to monitor every piece of your large property, including buildings and wooded areas. Some of the benefits you get from installing trail cameras include the following:

Trail cameras give you real-time monitoring

You can’t possibly see everything happening on your property with your own eye without help from technology. The right trail cameras can give you real-time monitoring of every square foot and acre.

You can record evidence of illegal activities

Criminals know that owners have difficulty monitoring large properties, so they choose parts of your land that you rarely visit to conduct illegal activities. The activities can range in severity. Perhaps they simply hunt on your land out of season. Others may grow or manufacturer illicit substances.

Trail cameras give you a chance to spot illegal activities and report them to local authorities.

You can identify the areas that attract trespassers

Taking time to visit all areas of your property should help you uncover evidence of trespassing. Unfortunately, savvy trespassers will often choose the least accessible parts of your land to commit crimes or set up camping sites without getting detected. Some trespassers also know that they must remove evidence so they can keep returning to your land.

Trail cameras improve your land privacy by helping you survey areas that are difficult to access. Even if someone finds a covered location to set up camp, your cameras will catch them walking to and from the site.

When you talk to local law enforcement, you can use recordings from your trail cameras to help them identify trespassers. License plate trail cameras will even record the information about vehicles trespassing on your property, making it easier for authorities to find people who have committed theft and other crimes on your land.

Features to Consider When Buying Trail Cameras

Not all trail cameras have the features you need to ensure property privacy. Consider the following features when you buy cameras for your land.

No-glow infrared lighting

No-glow infrared lighting lets cameras record movement during the night without using visible lights that would scare away trespassers. You get the stealth that you need to record evidence without letting criminals know that they’ve been caught.

Camouflage that matches your property’s features

Camouflage also helps ensure your monitoring system’s stealth. Look for trail cameras that match your property’s features. For example, you might choose a green and brown camera that blends into trees.

Wireless connectivity

You need wireless connectivity so your trail cameras can send footage to your computer, smartphone, tablet, or cloud storage. Wireless connectivity brings all of your surveillance to one location. If you cannot connect to your trail cameras, you will need to visit them regularly to download their footage. By that time, trespassers may have moved on to someone else’s property.

Time, date, and location stamping

Time, date, and location stamping make it easier for you to understand what happens on your property. It also gives law enforcement the information they need to build cases against trespassers. When you can give your local authorities accurate information about where and when a crime took place, they will have an easier time finding trespassers and getting warrants to investigate more serious crimes.

Software that makes surveillance easy

Ideally, your trail cameras should integrate with software that makes it easier to spot trespassing and improve property privacy. For example, software might flag footage that shows motion or captures the human form. Without intelligent software, you would have to scan hundreds of hours of footage to find the evidence you need. The right software can do that work for you.

Conclusion

Whether you own a farm, woodland, or rural property that gives you an escape from daily life, trail cameras can improve your property privacy significantly. Browse your options to find a system that offers the coverage and features you need at a price you can afford.

 

2020 Land Market Survey

Survey Shows Land the Only Commercial Asset with Positive Growth in 2020

April 20, 2021 (Chicago) The REALTORS® Land Institute (RLI) and National Association of REALTORS® Research Group have released the results of their latest Land Market Survey. The survey shows that while the COVID-19 pandemic battered the commercial real estate market in 2020, the land market held up to the pandemic’s severe blow, according to survey participants. A 3% increase in land sales contrasts starkly with a 40% drop in commercial sales transactions of properties or portfolios of at least $2.5 million.

Land sales prices were also on the rise, with respondents reporting a 2% increase on average in 2020. In contrast, the Green Street Commercial Price Index, an appraisal-based index of the properties held by REITS, indicates that commercial real estate prices fell 6% in 2020. The strongest price increases were reported in residential (+6.8%) and recreational (+3.6%) land, due to the robust demand in home sales especially in the suburbs and for vacation homes and the acceleration in e-commerce sales.

As for the 2021 outlook, respondents expect an increase in land sales and land prices for all types of land, except for sales of land for office, retail, and hotel use. Respondents expect the strongest sales growth in sales of residential land (5.9%) with prices rising on average by 5%. Sales of timber land are also expected to remain flat. Respondents expect the strongest price growth for industrial and recreational land, each growing at 3% in 2021.

Click here to view and download the full 2020 Land Market Survey. 

RLI’s 2021 National President, Renee Harvey, ALC, stated, “The land market saw incredible growth in the face of unprecedented challenges in 2020. As the only commercial asset with positive growth during the COVID-19 pandemic, land continues to be a sound investment.”

Lawrence Yun, PhD, Chief Economist and Senior Vice-President, Research for the National Association of REALTORS®, stated, “The acute housing shortage facing the country means the continued need to build more homes. The very first step requires land acquisition. Therefore, I expect the land market to continue to show robust growth this year. In addition the acceleration of e-commerce will be another major force that will continue to drive the demand for land for new warehouses and distribution centers.”

The annual Land Market Survey is a tool for landowners and land real estate professionals in all sectors of the business to use for bench-marking and as an informational resource when conducting business. This year marks the seventh consecutive year that the survey has been conducted to reveal current trends and the ever-changing state of land markets within the industry.

Click here to view and download the full 2020 Land Market Survey. 

Value Beyond the Surface: Part II

This post is part two of a two-part article from LandGate. It originally appeared in the Winter 2021 issue of Terra Firma magazine. Click here to read part one.

Resource Values & Deals

Solar

Landowners can now potentially earn millions of dollars from lease options, rental payments, and cash bonuses paid by solar developers. In some examples, a property owner with 40 acres can generate a total of $1.2 million dollars over the life of a utility scale solar project, but may have settled for 10-20% of the property’s resource potential by falling prey to competitive leasing tactics. Successful solar lease negotiations are defined by the property owner and developer reaching an agreement that is advantageous for both parties in the long term. The best way to reach an agreement is with a more transparent leasing process and by providing access to solar rights data, valuations, and expertise to real estate agents.

The important value drivers for solar on a specific property include:

  • State and local credits and subsidies to developers
  • Local marginal prices and nearby demand
  • Nearby existing grid connection sites such as transmission lines and substations
  • Solar irradiance
  • Topography of the surface
  • Buildable area (removing flood zones, forestry, dwellings, etc.)
  • Network intake capacity

Wind

Wind leases function very similar to solar, with the exception that it is often possible to exploit both wind and oil and gas simultaneously, giving energy companies additional options. Unlike solar, wind can be exploited in various terrain conditions.

The important value drivers for wind development on a specific property include:

  • Nearby existing grid connection sites (transmission lines, sub-stations)
  • High average wind speeds
  • Credits and subsidies to developers in specific states
  • Spaces that are away from heavy residential areas to avoid noise and viewpoint damage

Beyond the energy markets, there are additional resources to consider such as water, mining, cell towers, agriculture, and recreation. The reality is that land resources impact the value of land and create additional opportunities for real estate agents to monetize on the transactions involving these property rights.

Marketing these land resources to specialized buyers, which include energy companies, involves a specialized skill and network. New and exciting platforms, such as LandGate, do all of the work for the agent and allow the agent to control the deal.

Oil and Gas

One of the more profitable energy resources derived from land would be oil and gas minerals. It is important for land agents to understand the potential of oil and gas development on the property, its value, and whether or not the mineral rights are part of the transaction. The property owner also has the right to sell the surface and retain the oil and gas mineral rights. The mineral owner has the right to use the surface in a reasonable manner to extract the minerals or lease those rights to an oil and gas operator, making these rights much more important than many realize.

The important value drivers for oil and gas on a specific property include:

  • Location – value can change quickly over a mile
  • Commodity prices and market conditions
  • Type of ownership
  • Operators activities and plans:
    • Existing production on the property
    • Horizontal development or permitting on or near the property
    • Is the owner receiving royalty checks
    • Is the owner receiving offers from mineral buyers/lessees
    • Is the owner receiving drilling notices or force pooling notices

Marketing Evolution & Future Opportunities

Land Resource Values Continuously Change

Technologies, developers activities, commodity prices, market conditions, costs, and subsidies change very rapidly in the energy sector. As a result, the valuation of land resources changes frequently. Real Estate agents need to have the latest information about activities and values at their disposal to inform their clients and leads.

Most states have energy divisions where people can painstakingly glean information about leasing activity, development, permits, and additional information. The process involves finding the specific division for the resource type, locating specific tracts, compiling documents, and researching the current activity.

LandGate and other companies work to compile data from major land resources across the U.S. and make them easily accessible and available for more efficient and profitable transactions. Agents need land resource experts to be able to manage these transactions.

Conclusion

There are big opportunities for land agents in today’s market and even more in tomorrow’s. Land resources are very complex, and it has been very difficult for landowners and their real estate agents to realize the full value of this very large market. Data and evaluations about land resources have been accessible only to large energy companies.
It is amazing how little information landowners still have about the resources sitting on or beneath their property. It creates an incredible opportunity for agents to assist these clients and access the full potential of multimillion dollar transactions in land resources. Agents need land experts to help them transact on land resources.

The future is bright for land real estate agents as the growing demand for energy is likely to increase the value of land significantly, as long as they manage to reap the benefits of this value. The industry will continue to see innovation providing the ability for agents to earn more income while helping landowners maximize their profits. The agents who have access to the tools needed to transact on land resources will be the ones that landowners will trust with their large, revenue generating, land assets.

About the Authors

Eric Thompson is the Vice President of Business Development at LandGate, an online marketplace for land resources. Since entering the oil and gas industry in 2015, he has handled over $300 million in asset transactions. Eric holds both graduate and undergraduate degrees and lives in Houston, Texas.

Dan McCue is Vice President Land at LandGate. He has been a successful Oil and Gas Land Professional for 40 years. He is an adjunct professor and twice-published author with The University of Texas at Austin’s Petroleum Extension (PETEX).

Yoann Hispa is CEO and co-founder of LandGate. Yoann has 17 years of experience in the energy industry doing billions of dollars in valuations, acquisitions, divestitures, and development projects in leadership and technical roles. Yoann holds an Executive MBA, three Masters in Engineering and Geoscience, and a BSc in Math.

Value Beyond the Surface: Part I

This post is part one of a two-part article from LandGate. It originally appeared in the Winter 2021 issue of Terra Firma magazine.

The Economic Opportunity of Land Resources for Real Estate Agents

Land real estate agents can earn significant income by marketing land resources which increase the value and revenue potential of land. These land resources can oftentimes exceed the traditional real estate land values and create exciting opportunities for agents. Some of the key questions agents are asking include: How do you know if the land has valuable mineral, solar, or wind resources? How much are these resources worth? How do you market land resources for the true market value given the complexity of land resource valuations? The reality is that land resources can be worth anywhere from two to ten times the value of the surface land real estate. In certain parts of the country, minerals alone have sold as high as $100,000 per acre and landowners have received as little as $250 per acre for their minerals in the same location.

Land Resource Market: $5 Trillion Per Year

Based on data before the Covid-19 pandemic, the total US residential real estate market was around $9 trillion per year. The land real estate market was estimated to be a $500 billion market. The market of land resources associated with land is around $5 trillion per year. As the demand for energy continues to grow, the land resource market will continue to increase. Land resources are a large market but due to the complex process of evaluation, the market has only been accessible to resource companies with the capacity to value these assets. Sellers and their agents have fallen prey to land resource flippers and small sale prices due to their lack of information.

Continuous Opportunities After a Sale

Real estate agents may think once they sell a property to a buyer, their work is done. But in fact, the buyer (new landowner) has additional options to lease certain property rights to resource companies, providing an additional way for agents to monetize the same property they just sold.

Challenge: Comparable Sales Misleading in a Flippers’ Market

Resource companies commonly send multiple offers from subsidiaries to create a false sense of market value. Some comparable sales data from resource companies is relevant, most isn’t. Resource companies always use the income approach to value acreage by risking future cash flows, the same exact way financial analysts value assets and companies.

Land resource valuations are extremely complex because there is a string of data points, calculations, and forecasting involved. To determine the acreage value, a resource company calculates the resource availability, extraction, commodity sale price, forecasted revenue generation, installation cost, operational costs, capital costs, taxes, incentives, and much more. These complex calculations leave agents and landowners at a disadvantage and in a position where they must rely on the developer to offer fair terms, which is rarely the case.

The result is that middlemen come into the market, commonly known as flippers. These flippers know that they can lease these rights to resource companies for up to ten times what they paid for it. Another scenario is that landowners enter into long-term agreements with a wind or solar developer leaving significant money on the table, or agreeing to unfavorable terms. Landowners and agents rarely achieve alone the best deals without land resource experts supporting them.

Most online mineral marketplaces do not provide valuations because they lack the technical expertise but also because they get paid by mineral buyers to capture great properties for cheap. Agents also need to be careful partnering with any land resource marketplace since some of them charge fees to both buyers and sellers which creates legal challenges.

Solution: Transparent Marketplace with Land Resource Experts’ Help

The only way to fix this market deficiency is to properly assess the full economic value of the land resources. Negotiations always involve exchanging ownership information, negotiation, economic valuation exchanges, complex lease negotiations, title verification, and closing. Companies like LandGate have land experts who solve this market deficiency and do all of the work for the agent making it easy for them. LandGate and other companies provide data intelligence and land experts who help calculate land resource value the way that resource companies would, making the subsequent considerations easy for land agents to understand.

Challenge: Buyers are Specialized and Transactions are Complicated

Another challenge in land resource marketing is that the process involves contacting buyers specific to each land resource. Within a resource type, most the buyers that landowners will be able to contact are likely to be middlemen. Even within a single segment, such as oil and gas minerals, specific top buyers change frequently depending on funding availability. Just in the past four years, oil and gas buyers have transitioned from public exploration and production companies, to private equity, to private investors and family offices as being the primary buyer class today.

Solution: Land Resource Experts Critical to Negotiate

Given the ever changing market, it is essential that agents work with land resource experts who know these buyer segments. LandGate, as an example, has over 30,000 buyers of land resources. Work has been done with oil and gas, solar, and wind developers so that the language used in these transactions is industry standard and results in the best deals for agents. The following are a few specific examples of the more common resources that landowners and agents often overlook when considering an acreage transaction. Land resource deals are very complex: true market value, reasonable terms, and expectations. It is very important for agents to find experts who are able to assist them with these transactions: valuation, title, negotiations, terms, and closing.

This post will be continued.

About the Authors

Eric Thompson is the Vice President of Business Development at LandGate, an online marketplace for land resources. Since entering the oil and gas industry in 2015, he has handled over $300 million in asset transactions. Eric holds both graduate and undergraduate degrees and lives in Houston, Texas.

Dan McCue is Vice President Land at LandGate. He has been a successful Oil and Gas Land Professional for 40 years. He is an adjunct professor and twice-published author with The University of Texas at Austin’s Petroleum Extension (PETEX).

Yoann Hispa is CEO and co-founder of LandGate. Yoann has 17 years of experience in the energy industry doing billions of dollars in valuations, acquisitions, divestitures, and development projects in leadership and technical roles. Yoann holds an Executive MBA, three Masters in Engineering and Geoscience, and a BSc in Math.

Open Lands: A Century-Old Doctrine & Your Property Rights

People just want to get away from it all.  Interest in owning land out in the country comes from the desire to hunt, fish, or farm in peace and solitude.  Big lots combined with few neighbors give people the privacy and security that they crave. 

Or so they might think.  Though landowners can keep private people off their land using trespassing laws, in many states the government may search the vast majority of private lands whenever they wish, and for any reason.  It doesn’t matter how many locked fences and “No Trespassing” signs the owner might put out.  

The reason?  A century-old legal rule called the “open fields” doctrine This constitutional error weakens every Americanproperty rights, but disproportionately hurts rural landowners.  Reform—whether through the courts or the legislature—is desperately needed to restore our basic right to be left alone.  

So how did it get to be this way? 

Many people know that the Fourth Amendment to the U.S. Constitution protects against “unreasonable searches and seizures,” as do all the constitutions of our 50 states.  When the Framers drafted the Fourth Amendment, they wanted to guarantee our right to be secure in, and on, our own property.   

And for a while that was how it worked.  Early Fourth Amendment decisions from the U.S. Supreme Court interpreted the amendment broadly so that it could achieve its important purpose.  Moreover, government officials rarely had to traipse across private property to enforce the laws, making constitutional conflicts few and far between. 

But that all changed in 1920 with Prohibition.  As the manufacture and sale of alcohol became illegal, government agents started prowling around for illicit hooch and stills, including on private lands.  In one such case called Hester v. United States, revenue agents hid on someone’s land to see if they were selling alcohol and gave chase when they saw his son hand someone a bottle.   

The son argued that the agents’ actions violated the Constitution.  But in a cursory opinion, the U.S. Supreme Court rejected that argument, holding that “the special protection accorded by the Fourth Amendment to the people in their ‘persons, houses, papers and effects,’ is not extended to the open fields.”  In one stroke, the Court categorically eliminated all constitutional protections for most of the private land owned in the United States.   

Hester’s narrow view of what the Fourth Amendment protects eviscerated Americans’ constitutional rights.  Worse, it was based on a false premise: that the distinction between [open fields] and the house is as old as the common law, a distinction that (if you read it) was actually about when private individuals could be charged with burglary, not about when government officers could intrude on private property.  Still, the damage was done. 

Hope sprang anew sixty years later, when the Supreme Court heard a case called Oliver v. United States, which asked whether Hester was still good law.  There was good reason to be optimistic:  In the years since Hesterthe Court had developed a new Fourth Amendment test that broke from Hester’s narrow approach.   

But bad facts make for bad law, and the 1980s had their own Prohibition—the War on Drugs.  So it was little surprise that, in 1984, the Court reaffirmed Hester, holdingin service of the War on Drugs and with disregard for the Constitution—that private property owners have no “reasonable expectation of privacy” on any private lands the Court deems to be an “open field.”  

So, what’s the problem? 

The “open fields” doctrine has been widely criticized, and for good reason.  Its narrow reading of the Fourth Amendment undercuts the amendment’s broad purpose, which is to make us secure in our own property.  Its statement that the common law justifies that narrow reading lacks historical support.  And ultimately, the doctrine makes it hard for anyone to feel secure, since it means agents could be snooping around unannounced at any point. 

These concerns have only grown more pointed in modern times.  In the old days, if the government wanted to search your land, it had to hire and send out officers to do the deed.  But modern technology has made it cheap and easy for officials to instead run their own digital dragnet.   

One way is through automated surveillance cameras.  Hunters often secure these cameras to tree trunks to learn more about nearby fauna.  But the government can just as easily use these cameras to learn more about you.  With this new technology, officials don’t have to hide in the bushes 24/7.  Instead, they can enter someone’s land, attach surveillance camera to a strategically placed tree trunk, and then sit back as it automatically takes and stores pictures of any activityany time of day.   

Sound creepy?  That’s what Terry Rainwaters thought.  Terry is a lifelong resident of Camden, Tennessee who owns 136 acres of land along the Big Sandy River. He lives there with his son, with whom he spends time hunting. Terry also farms the land and rents out a separate house on the property to a long-time tenant. Terry values his privacy, so he keeps his gates locked and posted with “No Trespassing” sign. 

In December 2017, Terry’s son was driving around the property when he saw an unmarked camera hanging from a string in one of Terry’s trees.  From its vantage point, the camera was able to capture images of people and cars moving past, of Terry and his son’s private activities, and even of the back of Terry’s tenant’s home.  They found a second camera set up nearby, with a tree branch cut to provide the camera with a clear view of the property.  A few days later, both cameras suddenly disappeared. 

It turned out that officers from the Tennessee Wildlife Resources Agency (TWRA) had surreptitiously snuck onto Terry’s land.  As part of their mandate to “[e]nforce all laws relating to wildlife,” Tennessee law gives TWRA’s Executive Director (and, through him, TWRA officers) the power to “go upon any property, outside of buildings, posted or otherwise” to search for hunting violations.   

Terry has had a Tennessee hunting license for decades and has seen TWRA officers wandering around his property without permission several times in the past but had never encountered cameras before. Rattled, Terry spoke to other hunters in Camden, who told him that TWRA officers had trespassed on their land and installed cameras as well. 

What can be done? 

Terry and another Camden resident, Hunter Hollingsworth, grew sick and tired of TWRA’s warrantless snooping.  So, they joined forces with the Institute for Justice to sue TWRA in state court to bring it to an end.  Their lawsuit contends that, even if the federal “open fields” doctrine means TWRA agents could enter their property without violating the Fourth Amendment, they cannot do so under the Tennessee Constitution. 

This position has a lot of support behind it.  The Tennessee Supreme Court has rejected the “open fields” doctrine on several occasions as inconsistent with a free society that respects private property and privacy.  And so have other states.  The Mississippi Supreme Court, for instance, saw the decision in Hester and immediately rejected its reasoning on state constitutional grounds.  In more recent years several other states, including Montana, New York, Oregon, Vermont, and Washington, reached the same conclusion. 

That’s good for the citizens of those states, whose land would otherwise largely be without any constitutional protection. Sure, it means that officials have to get a warrant, but that’s what they are supposed to do.  And the lack of any horror stories coming out of New York, Montana, or elsewhere shows that respecting people’s property and constitutional rights need not come at the public’s expense.   

Terry’s case is a wake-up call, both to Tennessee courts and the nation more generally.  It asks the Tennessee Supreme Court to remind TWRA officials that, in the Volunteer State, “No Trespassing” signs apply to the government too.  And it is part of a larger campaign by the Institute for Justice to persuade courts around the nation, including the U.S. Supreme Court, to repudiate the “open fields” doctrine and restore the Fourth Amendment’s broad protections for all Americans. 

But the courts aren’t the only way we can restore our constitutional rights.  Legislatures can also help rein in out-of-control officials.  That is the objective behind the Institute’s model legislation, which requires that, absent a real emergency, officials either get owners’ permission or a search warrant before searching private property.  And to give that requirement real teeth, the legislation allows owners to sue government officials for any offense or damage that results from their illegal entry. 

Of course, no single case or single bill can fix the damage caused by Hester and the open fields doctrine, which has plagued us for almost an entire century.  But the fact that a mistake is long-lived does not make that mistake right.  Whether through litigation or legislation, it is long past time to restore our right to be secure on our own land.  Finally closing the door on the open fields doctrine will give us all the freedom to once again get away from it all. 

This article originally appeared as “Open Lands: A Century-Old Doctrine and Your Property Rights” in the Winter 2021 edition of Terra Firma Magazine.

About the Author

Robert Frommer is a Senior Attorney at the Institute for Justice, a nonprofit, public-interest law firm dedicated to strengthening Americans’ right to be secure in their persons and property. Robert has a Juris Doctorate from the University of Michigan and a Master’s degree in Economics from George Mason University.

7 Steps to Successfully Sell Land Online

Selling land can be tough. Many buyers do not have the foresight, time, or financial means to properly develop a vacant tract. This can limit the market to a very specific segment.

If you are struggling to find a buyer, consider the advantages of selling your land online. Not only does this put your land before the eyes of a worldwide audience, but digital technology allows you to showcase the land in a more flattering light than you ever could in person.

Consider the following seven steps to most effectively sell your land online.

1. Use Drones to Give Virtual Tours

Online real estate listings are not complete without drone footage. For land sales, in particular, aerial images are paramount. You simply cannot capture all of the land’s unique features online without giving buyers a thorough look from a bird’s-eye view. As such, hiring a professional in drone photography should be at the top of your checklist prior to listing your land for sale.

2. Make Buyers Aware of Development Prospects

There are practically no buyers out there who are interested in buying land just to own land. Sure, the age-old concept of buying land as an investment likely compels most people to consider purchasing land, but very few will be content in sitting back and passively hoping that the land suddenly becomes coveted in their lifetime. They will want to actively develop the land to speed up their return on investment.

Therefore, you should clearly highlight all of the features that your land boasts for development. Its proximity to trendy locations, prospects for getting utilities to buildings, and community plans for local expansion should all be featured prominently in your online listing.

3. Work with a Land Broker

All land brokers are real estate agents, but not all real estate agents are land brokers. Land brokers are specialized real estate professionals who focus on the sale and transfer of land. They have a detailed understanding of building codes and zoning restrictions–among a host of other specializations–and can be extremely valuable to you in formulating a plan on how to most effectively market your land online. RLI’s Find a Land Consultant tool is an excellent resource for finding land brokers and Accredited Land Consultants who can effectively guide you through a land transaction.

4. Know Your Goals When Setting a Price

The classic sentiment is that overpricing a piece of land can stall the sale process, as an exorbitantly high asking price can deter buyers from even making an offer they think you will consider. So if moving your land fast is your goal, then make sure you have a competitive price.

However, do not shortchange yourself if capturing a tidy profit is important to you. The COVID-19 pandemic is causing millions of Americans to relocate, with those in expensive cities such as San Francisco and New York looking for more socially-distanced spaces. Many in this demographic are scooping up properties sight-unseen to start a new life for themselves in the era of remote work, with your piece of land potentially fitting nicely into these plans.

5. Demark the Boundaries Clearly

Simply listing the size of the lot will not resonate with many buyers. They want to be able to see exactly what they are getting. Be sure to include specific lot line dimensions, with boundaries drawn into aerial photographs an excellent way to highlight the lay of your land.

6. The More Information, the Better

You can never be too descriptive when you sell land online. Videos, pictures, and detailed text should make it easy for online shoppers to find and comprehend what they are looking for. It is also important to remember that many buyers have their guards up against being duped online, so if there is anything about your land that may be problematic to some buyers, it is best to clearly convey that in your listing so that you do not waste time when a buyer gets cold feet later in the process.

7. Include Keywords in Your Listing

No matter how great your online listing is, it is all for naught if buyers cannot find it in the myriad properties that crowd their Internet searches. Therefore, research some keywords that buyers use when shopping for land online. Some popular keywords that many shoppers use in their searches include “private,” “lake,” “mountain,” and close to town.”

Conclusion

Selling land presents some challenges, but these difficulties can be effectively managed by creating an online listing. Not only does selling online get your land in front of a larger market, but it allows you to highlight key features of the property that would not stand out by placing a “Land for Sale” sign along the side of the road. By following the seven steps in this article, you have all of the tools you need to make your online listing shine!

About the Author

Skylar Ross is a writer for Land.us who specializes in topics related to land management, property investment, and real estate. He focuses on helping current and prospective landowners care for their land, discover investment opportunities, and be successful in land brokerage deals.

recreational land fishing

What First-Time Recreational Land Buyers Need To Know

The idea of owning your own rural property is an appealing one, and can seem like the process can be fairly simple. But if you’re buying land, especially as first-time recreational land buyers, there are several conditions and circumstances you’ll want to be aware of so that you can make an informed decision and avoid costly mistakes.

Considerations Before Purchasing Land

What Are Your Needs From The Property?

The first thing you want to decide as first-time recreational land buyers is what type of property you want and how you intend to use it. There are big differences between purchasing land for hunting deer or fishing versus purchasing land for camping or hiking on the property.

hiking recreational land

What Is Your Budget?

Another important consideration is determining how you will pay for your land. If you have the cash, great! Experts recommended paying cash for land if you have the ability. That’s because a traditional land loan is more difficult to obtain than a mortgage. Additionally, land loans almost always have higher interest rates, require a higher down payment, and are typically required to be paid off in 3 to 5 years.

Most Importantly, What Land Professional Will You Use?

Before anything else, you must find someone to help you with your land purchase. A traditional real estate agent likely will not have the experience required to help you with a land purchase. An agent that specializes in recreational land purchases will have the experience and knowledge needed to help you find the right piece of land. Using a qualified land broker can also benefit you when it comes to considering zoning laws and other legalities as well. With a good land agent, they will be able to help with everything else in this article to ensure your transaction goes smoothly and you end up with the right property to meet your needs.

recreational land dirt bike

The Land-Buying Process — Mistakes to Avoid

Don’t Expect to Make a Purchase Too Quickly

Buying land for the first time will likely take longer than you think. But that’s okay, because it isn’t a transaction you should rush into. You’ll want to take the time to work with a qualified land agent to thoroughly research each parcel of recreational land you are interested in and compare them.

It may take several months or longer before you find the perfect piece of land that checks all the boxes for what you really want. Lenders will also want appraisals, surveys, and environmental evaluations, adding to the length of time the process takes.

hunting blind

Don’t Pay More Than the Land is Worth

This may seem like an obvious one but there is more to it than meets the eye. You don’t want to pay much more than a particular piece of land is worth, right? Make sure to research what other parcels of land in the area are selling for and determine what the property’s appreciation potential is for both the short and long term. A qualified land agent can also help you with this.

Check Legal Access

In some cases, legal access to the property might not actually come with the deed — referred to as an easement, it is important that you are aware of what easements exist for the property you are interested in. Easements are common when the land you are interested in lies between two other pieces of property.

There might also be situations in which you would need to add a road, infrastructure, and utilities. Obviously, this can be extremely costly, and will need to be considered when formulating your budget to help you decide whether the property is a fit.

hunting bling recreational land

Check for Liens

If any liens have been taken out against the property you could be liable for the outstanding property taxes if they weren’t completely paid off by the previous owner. You’ll want a record that the property is clear of any liens before you decide to go through with a purchase.

Additionally, be aware of what your property taxes will be. Take a look at the property tax records for the last few years. This will give you a good idea of how much the taxes are raised each year so that you know what to expect to pay and how much they may increase in future years. High property taxes might have you changing your mind if the return on investment isn’t worth it.

Research

If you’ve narrowed your decision down to a few particular parcels of land, research them more thoroughly and visit them more than once. Have surveys and environmental testing performed. Check the zoning requirements to ensure that you can do what you intend to do on the land. Even if you only plan on building a house, not all areas are zone for houses that fall below a specific square footage.

You’ll also want to check for land drainage and soil quality. A parcel of land that is prone to flooding is not a good investment, and if you intend to do any hobby farming, you’ll want soil of good quality as well.

Use a Title Company for Closing

When it comes to closing the deal, title insurance is also important. When it comes to a land purchase as first-time recreational land buyers, the title company will typically have more experience than a real estate attorney who traditionally only does mortgages. Both your realtor and the title insurance company will take care of a lot of the paperwork for you and ensure that everything is completed properly.

Ready to buy your first recreational property? Start by finding a land consultant in your area!

hunting lease

Eight Tips for Taking Advantage of a Hunting Lease

As the overpopulation of public hunting land continues, an ever-increasing number of people are looking to hunt on private ground. This can be a lucrative way of earning income for landowners and gives renters access to premium hunting real estate.

For lessors and lessees alike, there are several things to consider before signing one of these leases. Eight tips have been listed below, along with explanations of how they apply to both sides of the equation (property owners and renters) in each case.

  1. Liaise with Trusted Local Agencies

Landowners might not know exactly how to go about finding the right tenants, and would-be tenants might not be able to find the right land to rent. While you should check local websites for available properties in your desired area, local authorities are also valuable resources of information.

For hunters, these offices will have up-to-date lists of the kind of game and terrain that all active lessees are offering. For lessees themselves, the district conservationists and county Extension agents with the NRCS (National Resources Conservation Service) are a convenient contact.

These conservationists and agents will be frequently liaising with property owners anyway and can be trusted to prioritize the best interests of the land – so all parties should feel comfortable with the contacts they provide.

  1. Do a Thorough Background Check

Both renters and owners should check out the other party as thoroughly as possible. As a lessor, you can ask your prospective clients for a list of references. Potential lessees can do the same thing – ask for the names of previous renters and get in contact with them.

In either case, find out what the prior tenants and landlords have to say before you commit to any agreements of your own. If you’re looking at renting the land, make sure you take a walkthrough first and see it for yourself.

You should also try to speak to any hunters or owners of properties that surround the perimeter of the grounds you’re interested in. That way, you’ll get a first-hand account of what the hunting season is like, and what kind of species diversity and size you can expect.

  1. Decide What Kind of Lease You Want

There are long and short-term hunting leases, each with pros and cons for both landowners and renters. Long-term agreements can be seasonal, annual, or multi-year, while short-term can be daily, weekly, multi-day, or related to special seasonal conditions.

Special seasonal conditions usually refer to hunting for the season, but with a very specific type of weapon (like a muzzle-loader, rifle or bow) only. Whatever the particulars are, long-term leases usually cost more at the time, but work out as less expensive per diem.

Long-term contracts are also less work for property owners, who might have to offer or find food and lodging for short-term customers. Everyone benefits from short-term agreements if they run into issues with the other party since the contract is concluded fairly timeously.

Landowners need to decide if the extra profits of short-term leases are worth the additional effort that will be expended, and renters have to be sure that they’ll get enough use out of the long-term lease for the savings to be worthwhile.

hunting tower on hunting land

  1. Negotiate Fees Based on Hunting Requirements

If you’re the owner, you need to consider what activities and specific types of vehicles will be allowed and for what prices very carefully. You want your rates to be competitive, but you also want to get the most lucrative deal for yourself.

For instance, if camping, fishing and swimming are also possible on your land, can you charge extra for each of them, or will that put potential hunters off? In which case, you could charge a single extra amount to permit all of these additional activities.

As a prospective renter, take a close look at your requirements. If you strictly want to hunt and are not interested in fishing or swimming, you might want to pay a lower fee for camping permission only. You could also pay less if you’re only interested in hunting certain species.

  1. Make Sure Availability is Transparent

Often, lessors retain the use of the hunting grounds themselves or to rent the land out to several different groups. Lessees need to decide if they’re happy with the dates they will have access to the area, and with the number of other parties that will have access to it at the same time.

To avoid ugly and potentially costly disputes later, the availability of the acreage should be very clearly set down. How large can each group be, for example, and which members of the owner’s family will be able to come onto the property?

  1. Outline Shared Duties on the Land

Once again, the shared duties should be clearly described and agreed upon to avoid any later disagreements. Shared duties here pertain to anti-poaching, conservation, habitat management, and herd management.

Having responsible renters to carry out some of these duties can be a huge boon for landowners, and for clients, these activities can be a way of negotiating a better price. As long as both sides are fair and respectful of each other, it can be extremely mutually beneficial.

  1. Put Liability Insurance in Place

In hunting, liability insurance refers to the coverage for both lessors and lessees and protects them from paying for damages when accidents occur. Policies can be purchased at very reasonable prices, and you should never enter into an agreement with anyone who doesn’t have it.

If you’re actively looking for hunting grounds to rent, take the time to get your insurance up to date – you’ll demonstrate your reliability, and many landowners won’t take you seriously or even consider signing a lease with you if you don’t.

  1. Discuss and Finalize Written Rules

The lease terms, conditions of renewal, rates, property description, shared duties, availability, and liability insurance should all be included in the contract that you sign. As should other written rules, including whether permanent structures can be erected, and accident protocols.

Written rules should also stipulate that local, state, and/or federal wildlife laws must be observed, and, importantly, the arbitration measures that should be carried out in the event of any disputes.

Essentially, you need to make sure that you get everything in writing, no matter which side of the table you’re sitting on. Just as anyone with large assets at stake who is getting married should get a prenuptial agreement, everyone signing a hunting lease should make sure their contract is iron-clad.

Author Bio: Ashley Wells is Editor at Hunting Locator. She is a passionate outdoors enthusiast and writer. With her trusty camper van, she’s on a mission to travel the remote corners and discover the hidden gems our world has to offer – one destination at a time.