Why do we buy land? We buy land for:
- Use as an owner/operator
- 1031 exchange
- A legacy
How many types of land are there?
- Agricultural – farms and ranches
- Confinement operations: hog, dairy, poultry
- Agribusiness uses: elevators, seed processing plants, etc.
- Orchards/vineyards (permanent plantings)
- Land-in transition
- …the list is lengthy!
How, then, do you make an educated decision in the acquisition or disposition of land? How do reach your land goals and objectives? Do you know where to start and the questions to ask?
When you work with a qualified land real estate professional, such as an Accredited Land Consultant (ALC), the land professional can assist you in reaching your goals and objectives through:
- Asking the right questions to determine what those goals & objectives are
- Once identified, to provide thoughtful analysis and innovative solutions to help you reach those goals
- Presenting you with appropriate information on current economic conditions at the local, regional, national and global levels; interest rate trends; commodity prices and effect on land values/rents/sale prices; as well as updates on legislative issues that affect your land
- Discussions to determine if you should/could do a 1031 exchange, DST, or other tax deferment with the sale proceeds based on your goals/objectives, how large a tax consequence there will be…
- Determining the highest and best use of your land
- Handling mineral or water rights issues using the proper legal avenues and guidelines
- Marketing your property appropriately including through the REALTORS® Land Institute’s Land Connections listing site, Lands-of-America affiliation, as well as marketing at the state and national meeting marketing sessions.
- … again, the list is lengthy due to the depth and breadth of issues for any tract of land.
Minimize the risk with your largest investment by working with an Accredited Land Consultant (ALC) who can provide the connections, education, experience, and expertise to guide you through the changing, complex world of today’s land market. Before you consider buying or selling a tract of land real estate, make sure to Find a Land Consultant to ensure you get the best representation possible.
About the author: Terri Jensen, ALC, was the 2015 National RLI President. She is currently the VP Real Estate/Appraisal Operations at Upper Midwest Management Corporation. She is a licensed REALTOR®/Broker in Minnesota and Nebraska as well as a licensed appraiser and auctioneer in Minnesota.