Land Blog....get the dirt!

I keep hearing about Topographic Maps…..what are they?

2012-02-16T06:43:00.000-08:00

This is a favorite subject of mine. Let's discuss what they are. Topographic maps are also commonly called contour maps or topo maps. The United States Geological Survey (USGS) took over responsibility for mapping the country in 1879 and has been the primary civilian mapping agency of the United States ever since. The best known USGS maps are the 1:24,000-scale topographic maps, also known as 7.5-minute quadrangles. More than 55,000 7.5-minute maps were made to cover the 48 conterminous States. This is the only uniform map series that covers the entire area of the United States in considerable detail.

A topographic map is a type of map characterized by large-scale detail and quantitative representation of relief, usually using contour lines. Contour line are lines on the map that connect all point with equal elevation above sea level. If you encounter a map where the contour lines are close together, that means that the relief is very steep. Traditional definitions require a topographic map to show both natural and man-made features.

Uses - Topographic maps have multiple uses in the present day: any type of geographic planning or large-scale architecture; earth sciences and many other geographic disciplines; mining and other earth-based endeavours (such as planning and constructing ponds); and recreational uses such as hiking or, in particular, orienteering, which uses highly detailed maps in its standard requirements. Topo maps can be used determine % slope, potential pond site and other uses. A topo map can be used to determine the watershed area for a pond or potential pond. If you are dealing with LAND, your Realtor should provide you with a topographic map!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

How Do I Pick A Realtor To Sell My Land?

2012-02-06T09:27:00.000-08:00

Realtors try to be all things to all people and it is simply not possible. Basically real estate breaks down into 3 categories: Residential, Land and Commercial. Generally speaking all realtors can or should be pretty good at residential. There is tons of information on the local MLS, so realtors have access to really good information related to what is on the market. But there is where the commonality ends.
The other areas of real estate require special knowledge and expertise related to the market. For example, a commercial specialist may have the CCIM (Certified Commercial Investment Member) designation. Realtors who special in commercial real estate can provide and analyze detail cash flow spreadsheets to determine the Present Net Value or the Internal Rate of Return.

Like wise, a land specialist may have the Accredited Land Consultant through the Realtors Land Institute ( I will talk about this highly esteemed designation in a later blog). Generally commercial and land realtors charge a higher commission rate due to the extra education, training and expertise they provide. Also, these specialist, in some cases will provide marketing and advertising opportunities that other realtors do not use. A land specialist can provide aerial photography and topographic maps of the property. This is helpful for determing how much of the land is forested, in agriculture, size of a pond or for other requirements. A topo map is useful to determine the percent slope on a tract or to determine if the property has a good pond site.

NOW HERE IS HOW YOU DETERMINE IF YOU ARE REALLY DEALING WITH A LAND SPECIALIST..... have your realtor meet you at one of your corners providing latitude-longitude coordinates. This will separate the land people!!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

What Do I Need to Know About TITLE INSURANCE...

2012-01-20T08:11:00.000-08:00

There are two types of title insurance. Let's discuss both.

Owner’s Title Insurance-Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. Title insurance insures against these problems. Title insurance protects against: 1) Un-paid mortgages and liens 2) sudden appearance of heirs 3) Forged deeds and 4) Incorrect legal descriptions. To help protect you in these events, it is recommended that you obtain an Owner's Policy of Title Insurance to insure you against the most unforeseen problems.

Lender’s Title Insurance - Sometimes referred to as a loan policy and it is issued to mortgage lenders. It follows the assignment of the mortgage loan, meaning that the policy benefits the purchaser of the loan if the loan is sold. For this reason, these policies greatly facilitate the sale of mortgages into the secondary market.

Attorneys will always advise you to purchase title insurance because they make money when they sell you the insurance!

Title insurance at the time of this posting cost approximately $3.65 per $1,000 of value. For example, title insurance would cost about $1,825 to insure a $500,000 purchase

My recommendation-You have little choice if a loan is involved. The Lender will require you to pay for the Lender’s Title Insurance. You do have a choice on the Owner’s Title Insurance and this is a personal call. If the property has been in a family for a long time, there are no heirs involved and the property is conveyed by General Warranty Deed, you might decide not to purchase the insurance. If the property has many heirs, has changed hands frequently over a short period of time, then I would advise purchasing the insurance!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

I would like to know more about GPS...... What is it?

2012-01-09T13:58:00.000-08:00

The Global Positioning System (GPS) is a satellite-based navigation system made up of a network of 24 satellites placed into orbit by the U.S. Department of Defense. GPS was originally intended for military applications, but in the 1980s, the government made the system available for civilian use. GPS works in any weather conditions, anywhere in the world, 24 hours a day. There are no subscription fees or setup charges to use GPS.

How it works

GPS satellites circle the earth twice a day in a very precise orbit and transmit signal information to earth. GPS receivers take this information and use triangulation to calculate the user's exact location. Essentially, the GPS receiver compares the time a signal was transmitted by a satellite with the time it was received. The time difference tells the GPS receiver how far away the satellite is. Now, with distance measurements from a few more satellites, the receiver can determine the user's position and display it on the unit's electronic map. A GPS receiver must be locked on to the signal of at least three satellites to calculate a 2D position (latitude and longitude) and track movement. With four or more satellites in view, the receiver can determine the user's 3D position (latitude, longitude and altitude). Once the user's position has been determined, the GPS unit can calculate other information, such as speed, bearing, track, trip distance, distance to destination, sunrise and sunset time and more.

How accurate is GPS?

Today's GPS receivers are extremely accurate, thanks to their parallel multi-channel design. The new GPS receivers are quick to lock onto satellites when first turned on and they maintain strong locks, even in dense foliage or urban settings with tall buildings. Certain atmospheric factors and other sources of error can affect the accuracy of GPS receivers. GPS receivers are accurate to within 15 meters on average. Newer GPS receivers with WAAS (Wide Area Augmentation System) capability can improve accuracy to less than three meters on average. No additional equipment or fees are required to take advantage of WAAS. Users can also get better accuracy with Differential GPS (DGPS), which corrects GPS signals to within an average of three to five meters. The U.S. Coast Guard operates the most common DGPS correction service. This system consists of a network of towers that receive GPS signals and transmit a corrected signal by beacon transmitters. In order to get the corrected signal, users must have a differential beacon receiver and beacon antenna in addition to their GPS.

The GPS satellite system

The 24 satellites that make up the GPS space segment are orbiting the earth about 12,000 miles above us. They are constantly moving, making two complete orbits in less than 24 hours. These satellites are travelling at speeds of roughly 7,000 miles an hour. There was a new satellite added in July. A Delta IV rocket successfully launched the GPS IIF-2 spacecraft into orbit on July 16, 2011. The Air Force completed its checkout and added it to the operational GPS constellation on August 19. GPS satellites are powered by solar energy. They have backup batteries onboard to keep them running in the event of a solar eclipse, when there's no solar power. Small rocket boosters on each satellite keep them flying in the correct path.

Here are some other interesting facts about the GPS satellites (also called NAVSTAR, the official U.S. Department of Defense name for GPS):

The first GPS satellite was launched in 1978.
A full constellation of 24 satellites was achieved in 1994.
Each satellite is built to last about 10 years. Replacements are constantly being built and launched into orbit.
A GPS satellite weighs approximately 2,000 pounds and is about 17 feet across with the solar panels extended.

Why is this important to me? 1) With the use of a GPS, one can easily navigate to a property. 2) GPS allows accurate survey work to be done with less effort and 3) people with GPS experience can provide useful maps of your property showing exact location of interesting features, timber stand maps and more !!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

How Far Have Land Prices Fallen?

2011-12-27T09:07:00.000-08:00

A close friend and client of mine ask me the other day… ‘How Far Have Land Prices Dropped?’ Well, that’s sort of a loaded question. You heard of the old adage location, location, location…well that applies here as well. What I can tell you, there are trends and the counties or areas where the prices went the highest had the furthest to fall. In other words, the bigger the bubble, the bigger the pop. The huge bubbles where primarily caused by speculation in the market and those counties where the development was occurring experienced the largest % drops. Prices went up because developers were buying property and causing increases in sale prices as seen in the Harris County numbers. Harris County is a bedroom community for Columbus, Georgia. Meriwether and Talbot County sales were primarily made up of recreational and timberland sales. Now let’s look at some specifics. I primarily work in the west central Georgia area so I picked some counties that I work in, Harris, Meriwether and Talbot as my sample. Following is a chart showing prices for 2007, 2010 and the percent drop in prices.

County	2007 $/Acre	2010 $/Acre	% Difference
Harris	$8925	$4800	46
Meriwether	$4635	$2900	37
Talbot	$2750	$2200	20

These are my best estimate of average county prices. These prices were calculated using information gathered from courthouse, appraisers etc. Individual sales data can vary widely.

You heard the saying ‘the bigger they are, the harder they fall’, well that is exactly what happened. Hopefully we have found the bottom, and now we can start moving some real property at fair prices!!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

I Am Planning to Thin My Timber…..What Do I Need To Know?

2011-12-13T12:17:00.000-08:00

To start with, I would engage the services of a Registered Forester. I prefer to remove every fifth row and thin in between leaving a residual basal area of 70-75 square feet of dominant and co-dominant trees. Generally you would be leaving about 200 – 225 trees per acre. You only get one chance at this and you cannot put the trees back after they are cut, so do it right !! All intermediate cuttings are designed to improve the value and quality of the trees in the final harvest. Generally, there are 2 thinnings then a final cut. The first thinning is done about age 15. You will remove 25-35 tons leaving about 40-50 tons per acre. This will generate $225-$275 per acre. The second thinning will be done about age 21-22. You will remove 30-35 tons per acre leaving 45-55 tons per acre, this will generate $425-$475 per acre. The final harvest will remove 75-85 tons per acre generating $2000-$2600 per acre.

The numbers mentioned above are average numbers from a 275,000 acre land base in the Southeast. Actual numbers can vary depending on site index and local market prices.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Where Do All The Christmas Trees Come From?

2011-11-28T06:37:00.000-08:00

Although Christmas tree farming is not a large Forest Product Industries in the state of Georgia, it just seems like land and trees go together. With the Christmas season approaching (and Yes I said Christmas, the season we celebrate the birth of Jesus Christ) I decided to write about this topic.

Christmas Tree species include Scotch Pine, White Pine, Norway Spruce, Douglas Fir, Fraser Fir and Balsam Fir. Georgia grows primarily Leyland Cypress (state wide), Virginia Pine (state wide) and White Pine north of the Gainesville-Rome line. Here are some points of interest:

· Every state has Christmas tree farms but generally Oregon is top producer

· The most popular Christmas tree in Oregon is the Douglas Fir

· North Carolina is the second top producer and the favorite tree is Fraser Fir

· 21,000 growers in the United States growing about a half billion trees per year

· Generally take 5-10 years to mature. Georgia trees can mature in 3-4 years due to warm climate and long growing season

· Trees are planted close together to increase cash flow. Many growers planted over 1,000 trees per acre

Advantages of growing Christmas trees:

· Rotations are much shorter than commercial forest types (pulpwood and sawtimber)

· Can be grown economically on small acreage

· Can be produced on land only marginally productive for agriculture

· Capital investment can be low

I hope you and your family have a wonderful Christmas celebration !

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Does Your Realtor Own LAND?

2011-11-24T06:24:00.000-08:00

Here is some background information. I had bought 25 acres in Harris County in 2003 with the intent to retire and build a house in the middle of the property. Plans changed...I moved to Harris County and started a real estate career. I decided to sale the land. I paid $75,000 for the land I sold a portion in 2006 and the balance in 2007. Total sales price was $262,500 excluding some survey cost and closing cost.

Now the rest of the story..... I was working with a client a couple of years ago looking for some replacement property in a 1031 tax-deferred exchange. He looked at me and ask 'Do you own any land?' I said no. I had been looking passively. I decided it was time to get on the ball. Soon after, I purchased 52 acres of timberland and recreational property in Johnson County. I just negotiated a 'timber contract' for the first thinning.

Realtors like myself are always telling folks what a wonderful investment LAND is. If you really believe in the product you are trying to sale, then you will personally invest in that product. Next time you are with your Realtor, Ask them if they own any LAND?

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

THE FLINT RIVER.......Where does the water come from? Where does it go?

2011-11-18T05:08:00.000-08:00

The Flint River headwaters start in East Point in Fulton County and runs under the runways at the Atlanta Hartsfield Airport. The river drains a watershed containing 8,460 square miles. The river is 344 miles long and flows through Sprewell Bluff State Park and then thru Albany. It drains into Lake Seminole where it joins the Chattahoochee River.

According to the Flint River Keepers (www.flintriverkeepers.org) there are many people and groups needing this precious resource. The #1 user is agriculture using approx. 2.3 billion gallons per day during the 6 month growing season. There are 24,000 permits state wide for irrigation. I would like to point out that pivot irrigation is a very wasteful way to irrigate crops. Much of the water is lost to evaporation. A more efficient way is the use of pipes and ditches. The #2 consumer are power plants and #3 are the municipalities along the river. Our future and ability to prosper as a nation is based on the amount and availability of clean water. If you don't believe this...look at Africa. (Disclaimer...this info was provided by the Flint River Keepers.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Do Powerlines and Transmission Lines Impact Value?

2011-11-14T09:09:00.000-08:00

I have been asked this questions many times and I do not have an exact answer. Research has shown that 1)The biggest disadvantage of owning a home near these high voltage transmission lines is the “fear factor” associated with Electric and Magnetic Fields (EMF’s). 2) Houses values are about 5-10% below comparable property and the property stays on the market about 62 days longer!

Related to land, I believe the impacts can be much worse. To begin with, one should assess how much of the property is impacted by the powerline or transmission line i.e. if 50% of the property is covered by the powerline, the value would be affected more drastically then a powerline that barely nips the corner. Because property is generally purchased for aesthetic purposes, powerlines can be a real eye sore.

If the property is being purchased for commercial purposes, the powerline might not be a factor. I have seen powerlines across recreational property that made some pretty nice food plots and shooting lanes !!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Why Do Leaves Change Color in the Fall?

2011-11-09T05:08:00.000-08:00

The green color we see in leaves most of the year is chlorophyll. It is responsible for photosynthesis which makes food (energy) for the tree. During winter, there is not enough light or water for photosynthesis. The trees will rest, and live off the food they stored during the summer. The food is stored in the roots. They begin to shut down their food-making factories. The green chlorophyll disappears from the leaves. As the bright green fades away, we begin to see yellow, red and orange colors or pigments called carotenoids and anthocynins. Small amounts of these colors have been in the leaves all along. We just can't see them in the summer, because they are covered up by the green chlorophyll.

The bright reds and purples we see in leaves are made mostly in the fall. In some trees, like maples, glucose is trapped in the leaves after photosynthesis stops. Sunlight and the cool nights of autumn cause the leaves to turn this glucose into a red color. The brown color of trees like oaks is made from wastes left in the leaves.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Why are there different types of deeds?

2011-11-05T12:20:00.000-07:00

Here is a general list of different type of Deeds:

General Warranty Deed-A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you. The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins.

Limited Warranty Deed-deed that only warrants the title for the limited time in which the seller owned the property. In other words, a Limited Warranty Deed is a deed in which the property transferred is warranted to be free of all liens and encumbrances made by or through the Grantor, but not otherwise. If you are selling property you should try to only provide a Limited Warranty Deed to limit your potential liability.

Quit Claim Deed-Quitclaim deeds transfer or "quit" any interest in real property. The grantor may not be in title at all, so the grantee cannot assume that the grantor has any real interest to convey. Commonly used in divorce settlements and to clear up encroachments etc.

Security Deed - This deed is used, rather than a mortgage, to give a lender a security interest in the property. A security deed, as opposed to a mere mortgage, passes legal title to the land while reserving unto the debtor the equitable title to use and enjoy the conveyed land subject to compliance with debt obligations.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Timberland......Who Owns All The Timberland?

2011-11-05T06:55:00.000-07:00

A recent case study reveals some interesting facts and trends:

In 2000 forest products companies owned about 20% of privately owned timberland, 36 million was in the Southeast. By 2010 much of these holdings had changed hands.

The top 10 companies owned 38.7 million acres in 2000. After a historic divestiture that number dropped to 21.5 million acres. Four of the top five are Real Estate Investment Trust (REITs), tax advantaged entities with timberland as their prinicipal business.
Timberland Investment Management Organizations (TIMOs) purchased many of the acres sold.
Timberland prices also increased over the period. Nation wide prices averaged $800 per acre in 2000. Prices peaked in 2007 at $1,800 per acre. By 2010 prices had fallen back to 2006 levels.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

How Do I Go About SELLING MY TIMBER?

2011-11-04T08:36:00.000-07:00

1.Hire a Registered Forester or Consultant to Help With the Planning and Sale of Your Timber

2. Develop a Forest Management Plan- Properly managed forests yield more timber, have a higher net present value

3. Pre-Harvest Planning - Pre-harvest planning will ensure that your forest management objectives and goals are not compromised. It will reduce opportunities for misunderstandings between you and the buyer

4. Determine a Selling Method - Timber is generally sold by one of two methods: negotiation or sealed bid. You should seek the advice of your Register Forester or Consultant Forester to determine which method is best for you and your harvesting objective.

5. Have a Contract - A written contract is essential and will reduce surprises to both you and the buyer

6. Monitor the Harvest - You or your agent should frequently inspect the harvesting operation to ensure the contract terms are being fulfilled.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

I just bought some land! .... should I allocate my cost ?

2011-11-02T09:22:00.000-07:00

Wow! It finally happened! You are now the proud owner of some woodland acres. Like most new owners, you cannot wait to enjoy the property. Therefore, you pull on your boots, file the sale papers and head for the woods. This is what all too often happens when a new owner

takes title to forestland. However, you should place the joys of ownership on hold for one very important determination. A new owner should first determine the original basis, or value, of all merchantable and unmerchantable timber at the time of acquisition. Before explaining the basis in detail, let's quickly see why it’s so important. If you conduct a timber sale and receive income your basis, for that portion of your timber sold, is deducted from the sale income before computing income tax. Since knowing your basis can reduce your tax bill, it’s very important to make the necessary calculations when you acquire woodland property!

Merchantable timber is simply determined by cruising the timber and assigning Fair Market Value by a Registered Forester. Unmerchantable timber is a bit more complicated but is generally determined by a formula or discounting an anticipated cash flow aka Present Net Value.

Subtract the cost of the timber from the total purchase price and assign that value to the bare land.

Total Value = Timber Value + Bareland Value

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Choosing the right Realtor.....

2011-11-01T06:31:00.000-07:00

Most people use specialists at some time or another. Whether fixing your health or your car, we want to go to the person with the most knowledge! It would only make sense to do the same when investing in land. This is where you may want to consider someone who is a member of the REALTORS® Land Institute and has an Accredited Land Consultant (ALC) designation.

Choose a realtor that can provide aerial photography, topographic maps, GPS services and have a broad base knowledge about forestry, access and other topics critical to your important decision about making an investment in land!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

Governmental Powers

2011-10-06T10:47:00.000-07:00

Do you know the 4 governmental powers? 1) Taxation - gives gov't power to levy taxes to pay for public services and infrastructure 2) Police - gov't has the power to enforce the laws of the land 3) Escheat - gov't has the power to take land when the owner dies with no heirs (and will) 4) Eminent Domain - gov't has the power to take land for the purposes of the general public i.e. building an interstate. In some case this right has been extended to companies. i.e. construction of electric transmission lines, railroads etc.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090

My First Blog

2011-10-06T09:16:00.000-07:00

I hope this will be the start of something great. I hope to share lots of interesting information about topics that affect land and land purchases. Topics may include tax implications, zoning, financing, 1031 tax deferred exchanges and much more.

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at (706) 457-0090