Realtors Land Institute Survey is Out - Land Prices & Trends

The 'Realtors Land Institute' Land Survey is Out with tons of valuable information. The survey is published based on Land Broker responses from across the US.  The US is broken up to different regions to help quantify the data. See the following picture.

The bulk of Land Brokers sell Agricultural, Residential and Recreational properties!

 Change in Land prices by Type from last year!

Land prices generally rose 2-3% from one year ago!

Expected Change in prices for 2016!

We are expecting 2-4% increases in the SouthEast depending on Land Type!

By far, the bulk of land SOLD is classified as Residential, Agricultural and Recreational.

 Type of Land Sold by Region

As you can see from the chart above, the bulk of the property SOLD in the southeast US is Timber, Residential and Recreational. The take away is simple, the bottom has occurred and we are expecting modest increases in prices going forward.  If you are contemplating buying LAND....don't wait!!

To see my listings, visit AllSouthLandandHomes.com.  If you have questions about buying or selling LAND, contact G. Kent Morris @ 706.457.0090

Land Navigation for the Land Owner and Land Broker!

I love the topic, I use these tips often to locate property corners and property lines. Let’s start with Google Earth.

1. I Start by drawing the property on Google Earth using the polygon tool at the top. This creates a KMZ file. Google Earth allows you to email the shapefile to your email address. You can then open the file and copy to Google Earth on your smart phone or tablet. See the following photo.

2. Next I turn on the ‘Location Services’ and allow Google Earth to access my location. Simply turn on the location feature (Looks like an arrow) and a blue spot on the map will appear. You can then track your progress as you walk the property.

See the blue dot indicating my position

3. I use this feature often when looking for corners. See the following photo of the corner I located. Pretty Cool!!

Another tool I use is Terrain Navigator Pro, a simple  GIS (Geographic Information System) program. I use this program in conjunction with a GPS receiver. You can locate a point/corner on Terrain Navigator Pro and the Latitude – Longitude coordinates are displayed at the top. See the following photo. You then use the GPS or your smart phone to navigate to the corner.

Garmin 60 GPS 

Here is another use, if I am walking the property and find a corner or interesting features like a water fall, ATV bridge, old chimney etc is to use my GPS receiver and record the point or marker. Terrain Navigator Pro allows you to plug your GPS receiver to the program and download a marker or track. The features now shows on the map! This is very useful for advertising a property for sale.

To view my listings, visit AllSouthLandandHomes.com. If you have questions about selling or buying LAND, Contact G. Kent Morris, ALC, RF @

706.457.0090

How Do I Choose the Right Realtor to Sell My Land?

To start with not all real estate is the same! If you have residential, commercial or land,  choose a Realtor ®  who specializes in that type real estate. For example if you have a knee injury, will you go see the allergy doctor, of course not!  I have some tips that I believe will be helpful.

#1. Choose a Realtor who specializes in your type real estate.

Not every real estate licensee is qualified to help you buy or sell rural land. Their license may make it legal to practice, but their inexperience in land transactions could be costing you thousands of dollars.

The National Association of Realtors (NAR) Code of Ethics and Standards of Practice states:

Article 11
The services which REALTORS^® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. REALTORS^® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence.

I know a Realtor who drove out in mini-van and put the sign in front of the wrong property!  I called to ask questions and they told me she didn’t like to walk property, I was floored. Would you list your house with someone who would not come inside? Of course not!

#2 Chose a Realtor who works and knows your market

•   A very nice historic house came up for sell in the county. They listed with a local realtor but quickly terminated the listing and listed with a high class prestigious company in Atlanta. The sign is on the ground and the house is not being shown. Why? The house is not listed on the local Multiple Listing Service and the local agents don’t have access to the data.

• If you have very specialized property i.e. equestrian ranch in Florida or a 10,000 acre cattle ranch with hacienda in New Mexico find the right Realtor and they probably will not be local…..but then again neither will the buyer.

•  It is difficult to sell in this market, you need all the advantages..... signs, multiple listing service, access to land website to give you national exposures etc.

#3 Interview the Realtor candidates

•          You will quickly learn who is qualified to represent you and begin marketing the property

•      Specifically ask about marketing strategies. If they are simply going to put up a sign and put it on the local MLS, you have the wrong Realtor! There are some great rural land websites out there, make sure your realtor provides you access to the sites.

• ·         Visit the website of the candidate. Does the site look nice? Does it provide important information like aerial photography, topographic maps, location maps and more. Remember, land buyers start their search on rural land websites and search engines. Make sure your realtor has a high profile here!!

Does the realtor have a good placement on search engines when searching for "land for sale"?

Finally, provide the latitude-longitude of a property corner and ask the Realtor to meet you there. If they find the corner, you are working with a real Land Broker!!

To see my listings visit AllSouthLandandHomes.com Buying or Selling Land? Contact G. Kent Morris, ALC, RF at      (706) 457-0090

How Do I Finance That Tract of Land?

Many people recognize the importance of diversifying their investment portfolio and that may mean investing in some land (timberland, recreational, agricultural or maybe that old farm you would like to retire to).  You may have the cash or maybe you need some financing. A lot of the conventional banks just don’t like financing LAND!  There are banks out there that that finance LAND and most are members of the Farm Credit system. These were previously referred to the Federal Land Banks. 

Every loan is different and the specifics depend on your credit history. Generally on smaller loans they generally require a 15% down payment and will usually finance the property for 15 years. For larger loans, usually over $200,000 they require a larger down payment but may extend the term to 20 years. One interesting thing about these loans, they have a +-20 year history of rebating +-25% of the interest paid in the form of a dividend check each year which reduces your effective interest rate (No guarantees but a good track record).

Also as you can see from the above map, the Farm Credit banks work different counties so it is impotant to contact the bank that provides financing in that county.

To see my listings visit AllSouthLandandHomes.com Buying or Selling LAND? Contact G. Kent Morris, ALC, RF  @706.457.0090

When To Thin...How To Thin!

I was on my way to the courthouse and saw something very interesting and thought it worthy of a blog post!  Many people wonder, when should I thin, how should I thin and the list goes on and on. Let’s begin by defining Live Crown Ration. Live Crown ration is a number representing the % of the total tree height represented by branches, leaves and needle. You see the branches and needles are where photosynthesis takes place, converting sunlight, water and nutrients into food for the tree. I look at it like the engine that supports the tree.  Supposedly you would like about 33% in the live crown ration and you should not let the ratio get below 25%. I have had some success thinning stands with live crown ration slightly below 25%, but that is not recommended. Let’s look at some pictures to help illustrate the topic.

Healthy Stand 1

Healthy Stand 2

All these pictures were taken of the same stand, planted at the same time and separated by a fence (2 landowners).The pictures were taken of planted pines approximately 24 years of age, but there are some startling differences. The pictures above show a healthy stand of trees. These trees were approximately 1 ½ - 2 inches larger than the stand in the bottom 2 pictures. Diameter equates to money because diameter determines the product i.e. pulpwood, chip-n-saw and sawtimber. These trees were thinned about 7 years ago and honestly could be thinned again soon…..”that’s more money”!! If you are interested in reading about thinning revenue, see my older blog post.

What Do I Need To Know About Thinning My Timber

Unhealthy Stand 1

Unhealthy Stand 2

In the above 2 pictures you begin to see some real problems. In one picture you see a lot of dead debris and trees on the ground. The ecosystem can only support so many trees so the weaker trees die and that’s lost revenue in your pocket! In the other picture you can see the small crowns or tops. The problem here, the trees simply won’t respond to the thinning. There is not enough limbs and needles for food production to jump start the tree. This landowner waited too long. An observant Forester would have recommended clearcutting the stand and starting over again. Trees won’t respond to a thinning if the crowns are too small.

“If you are going to do it….do it right”.

To see my listings visit AllSouthlandandHomes.com Buying or Selling land? Contact G. Kent Morris, RF, ALC  at 706.457.0090

BUY Land with a PARTNER or go it ALONE?

I recently participated in a LandThink survey. LandThink brings together the various components of the land industry and provides land investing knowledge, ideas and networking opportunities to land professionals and investors to create a stronger land marketplace.

The survey question ask….. “Would you prefer to own a large tract of land with a partner or a small tract without a partner”? Here are the results…

Overwhelmingly the majority of the respondents (76.37%) answered they would prefer to own a tract without a partner. Although there are some advantages to having a partner i.e. leverage larger purchases, the disadvantages outweigh the benefits. Case in point, I was recently contacted by a landowner who owns over 200 acres with a partner. The landowner was over 70 years of age and is simply not using the property any longer and he is tired of paying taxes. He and the partner have owned the property for over 20 years. They bought the property for recreational purposes and the entire family has enjoyed using the property but no longer, the kids are grown and gone. When he contacted the partner, he said he was not ready to sell. Typically the differences involve: 1) different strategies and goals and 2) time horizons differ among owners.

IF YOU GOING TO BUY A TRACT OF LAND…”BUY IT YOURSELF”!

If you want to see my listings, visit AllSouthLandandHomes.com. If you have questions buying or selling LAND, contact G. Kent Morris, ALC, RF at 706.457.0090

8 Things You Should Know When Buying Vacant Land or Lot!

I sell a lot of vacant land and there are things you need to know. Hopefully this will prepare you for your purchase of land. This is not a comprehensive list but this will help aide your decision!!

1.   Location – The old adage location, location, location has been worn out. But wait, we’re talking about YOUR money. You might be buying that tract of land to retire on but plans can change. You have to be cognizant of the fact that you might have to resale. Value and demand are primarily determined by location.

2. Utilities – What utilities are already available. You will need water, sewer (or stepic tank) and electricity. If these are not in place, talk to the right people and get estimates to have them provided. 

3.   Cost – There are other cost associated with buying property other than the purchase price. These might include closing cost, title insurance, surveying etc.

4.  Zoning – Make sure your intended use is compatible with current zoning regulation. You don’t want to buy a tract of land with the idea of raising cows or horses if that is not a permitted use. Of course you may apply for a zoning variance, but this can be expensive and time consuming.

5.   Covenants – This primarily applies to lots in a subdivision. Be advised there could be ‘Home Owners Association’ dues. The covenants are there to protect you and the neighbors. Just  make sure that the size house and the architecture of your home is compatible with the covenants and restrictions in the neighborhood. 

6.  Access – Very important topic. You may be buying property on a public road but there could be cost associated with putting in a driveway. Some property is accessed by easement. You need to know: 1) width of the easement 2) are there use limitations such as hauling timber out and 3) who can use the easement, are there other neighbors who need the easement for their access.

7.   Property Lines – Can you find the property lines? Is there was a recent survey. Property line (or boundary line maintenance) is so important. It can prevent people from using (or hunting) your property and help deter ‘adverse possession’ claims.

8.   Flooding – Is any part of the property in a flood zone. This is not all bad as these areas are great for maybe a pond or lake. In addition these areas provide a lot of habitat diversity for wildlife and may even create some good duck hunting. These areas are not suitable for a house and will not pass a soils test for a septic tank. There are 100 year flood maps available for your review at

https://msc.fema.gov/portal

 To view my listings visit AllSouthLandandHomes.com Buying or selling land? contact G. Kent Morris,  ALC,  RF  at  (706) 457-0090