Most real estate brokers sell houses because that�s where the volume is. That�s why so many real estate brokers work in cities and specialize in residential sales. They know that houses will move more frequently than raw land or farms and that they stand a better chance of making money by dealing with residential real estate. Sure, they will list farms, forest land and raw acreage, but most do so on the outside chance that someone might come along and want a farm. You usually end up with less than �full service� when you list your farm with such a broker.
I specialize in farms, large timberland acreage, and large industrial, commercial properties. But there are some things that you should know before you list this type of property with any broker:
First, the market for large acreage is limited and slow. The fact is that no one will make an investment in a property which, in their perception, cannot earn its own way in terms of income. There is activity on large acreage property for retirement and pension investment, and several large insurance companies are active in this market in the Southeast. You might wish to survey and subdivide your property to take advantage of local markets for homesites and mini-farms.
Second, there is no sense in expecting a property to bring more than the market will bear. Pricing farmland or rough mountain timberland at exorbitant prices simply wastes time. I list properties at reasonable values. If I believe that you have over-priced your land, I will tell you immediately. There is no use for you to want a price that you are not going to get, and there is no use for me to try to get a price that is impossible to obtain. Remember, land must earn its own way by producing income.
Third, don�t let tales of high prices in subdivisions blind you to reality. Fifteen years ago, for example, many people in the mountains of western North Carolina expected �Floridians� to buy their rough mountain land for exorbitant prices. It didn�t happen. What most �Floridians� bought was well-developed land, usually near golf courses and ski slopes with paved roads, great views and subdivision restrictions. Many people who expected to sell lots on rough gravel roads with no state maintenance going through steep mountain land were disappointed.
Finally, consider doing your own financing. In the past twenty years, I have sold thousands of acres of forestland. Most of these have been sold on the basis of owner financing. Why? Simple! Banks like to handle money; not land. Land is solid; money is liquid. Banks know how to handle money and the risk to money. Most banks will probably tell you that they will loan from fifty to seventy percent of appraised value on raw land in large acreage, assuming that you can come up with a considerable amount of front money as down payment. What banks are really saying is that they don�t want to finance raw land. By supplying your own financing, you will increase your market for your land and add to your income by making interest.
If you own large acreage farms, timberland, or old home-places, I have a limited market for them. I can�t and won�t promise you a sale, but I will try to find a buyer...especially if you are willing to finance the property yourself and take payments over a period of time, while earning an interest rate comparable to or better than that paid by banks and the stock market.
I can list your property and sell it, but I also occasionally buy and develop large tracts myself. It is extremely important for you to understand that I cannot ethically or legally act as both broker and buyer. If you want honest representation in the sale of your land, Contact me today!
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