Why in the world would a landowner hire a land agent when doing a deal with a neighbor or adjoining owner? That seems like the most slam dunk deal that any landowner could find himself in. Let’s address a few of the reasons why this can be a good idea.

Dave Milton, president of AlaLandCo, and I have had a running discussion throughout 2011 about becoming a trusted advisor for our clients. Our desire is to be more than just an agent, but to be the go-to source of information for anything pertaining to land. At AlaLandCo, we do not merely “hock” land; we offer solid advice about ways to improve any land transaction for our clients. So this article is in that vein of thinking.

Sometimes Neighbors are not so Neighborly

Ever hear of the Hatfields and McCoys? For 23 years these “neighbors” from Kentucky had an all-out war, sparked by a pig that had crossed from the land of one family to the others. Everyone in the land business has heard stories of deals gone sour between adjoining owners. Hiring an agent to help navigate the trouble spots in a land deal can save lots of frustration if a problem arises. One of the biggest potential icebergs for sinking a deal is when a landowner is selling a property that he does not know has a problem with the title, boundaries, or something for which he was honestly unaware. In my experience, problems arise in nearly all real estate transactions. It is the response to that issue that determines whether the deal will have a successful outcome or not. People do not naturally respond well to problems that may affect their pocketbook. Having a good agent to steer the negotiation can help avoid a costly shipwreck.

The Dirt is in the Details

I had a client that sold 40 acres along a state highway to a friend of his. He owned 120 acres, sold the front 40 to his friend, and kept the 80 acres in the back. 5 years after that transaction he decides to sell the remaining 80 acres. In the original deal, he did not reserve an easement in the deed to get to his back property. The “friend” is now reluctant to have people driving by his house and wants to make sure he controls who his new neighbors are. He has held the 80 acres hostage for two years, and the seller is reluctant to sue his “friend”.

A good agent would have advised his client on the front end to reserve an easement for ingress and egress. At that time I guarantee the easement would not have been a barrier for the buyer to agree to. After the ink dries, everything becomes subject to renegotiation. Other similar considerations would need to be given for water and mineral rights, shared fences, boundaries and a host of other potential snags. Settling these on the front end will help keep thing amicable for parties on both sides of the fence.

You have a Scapegoat

This past month I was hired by a landowner to help negotiate the purchase of tracts that touch his property. We made strong cash offers on two adjoining tracts, but were unable to reach a meeting of the minds on either. We offered more than the fair market value of each, but neither of the adjoining owners were willing to accept those terms. The point is that they are all still neighbors after the failed negotiation attempts. Now when they pass each other on the road or in the local café they can be neighborly. I was the go-between and any frustration or disappointment was dumped on me, not the other owners. This paves the way for making a successful offer in the future. If there is a breakdown in negotiations it is easier to throw the agent under the bus (figuratively I trust) and be able to have a peaceful co-existence.

But an Agent Costs Too Much

I would ask a broker or agent to work for you in this sort of transaction for a reduced fee. Most will be agreeable. In a situation where the agent does not have to go out and secure the buyer or seller they are more likely to agree to work for less money. I stress to my clients that I do not earn my money advertising or showing land. I really earn my money once the contract is signed and bringing the deal to a successful close. A good agent will make or save you more money than they cost.

If you still don’t buy into my concept, think about what happens in many do-it-yourself projects. How many times do you wish you had paid the plumber, accountant, mechanic, or dentist to do something properly out of the gate instead of living with regret over a leaky faucet, noisy car, or ragged smile?

As a landowner, you should find a broker or agent that can be your trusted land advisor. Wear them out asking advice, current sales information, or any question you can think up about land. Then when the time comes let them help you make money and save grief in a land transaction. You will be well-served by having a quality land professional in your corner, even when dealing with an adjoining owner.

When someone decides to buy a rural property, frequently the first inclination is to get out and “go shopping”.  Viewing properties is usually fun, especially when they are located in the country and the sun is shining.  But making that your very first step could lead to disappointment along the way.  Unfortunately, I often meet folks that have only a vague idea of the steps involved in the real estate shopping process and as a result quickly get frustrated with the endeavor. To avoid such frustration, there are four distinct steps that buyers should consider to prepare for serious shopping.

1. Choose Your Price Range

Step one is so important yet many buyers procrastinate because it’s just not fun to get pre-approved for a mortgage. Yes, it’s certainly more exciting to look at properties and dream than to have your mortgage banker or accountant tell you the cold hard facts, but skipping this essential step will only lead to disappointment later. There are few things as disheartening as having your heart set on a property only to find that you just can’t swing it financially. Knowing what you can afford will help you shop with confidence. You’ll also save time by only concentrating on the properties that are within your budget.

2. Choose Your Area

This second step will require you to spend some time online and in your car researching the area where you want your property to be. Too often people short cut this step and as a result they spend days looking at properties in a certain location only to find that they like a different area better.  One example is the Driftless area of Southwest Wisconsin. I frequently meet people that are completely unaware of the rugged beauty and reasonable prices just a few hours from their front door. A little time spent exploring different areas would have revealed this hidden jewel to them before they spent days looking elsewhere.

Some things to consider when doing your research are:

A)   How far are you willing to drive from your principal residence? A property is of little good to you if you don’t use it.

B)   What are your preferred recreational activities? Is there opportunity to enjoy the activities in the area?

C)   Will your friends or family be willing to join you there? Too often I see buyers hoping to use a property to reconnect a family only to find that the family members seldom make the trip.

D)  Do you like the communities in the area? Second homes often turn into primary residences at retirement so will you enjoy spending more time there?

A little time spent researching various location options will help you feel confident that there isn’t something better for you just over the horizon.

3. Choose Your Agent

Once you have an area selected for your recreational property or second home, it’s time to choose an agent to work with. While some people just call the agent that is on each for sale sign, most buyers find that working with a single agent is to their advantage. When you work with several agents, each one may pressure you to buy their listing instead of considering the best property for you.

When a buyer is committed to working with a single agent, it allows that agent to focus on the buyer’s needs and provide service without the pressure to buy any certain property. Most agents have access to the listing info for all of the available properties in the area so your agent can work with you on virtually any property you are interested in.  Enlisting your agent in writing as your buyer’s agent allows him/her to represent you (not the seller) in the transaction and allows them more freedom when advising you.

Choose an agent that can provide the proper tools (i.e. GPS, mapping, ATV) to help you get a really good feel for each property you view. You’ll also want an agent that is experienced in rural property transactions. You wouldn’t expect a medical malpractice attorney to be as familiar with divorce proceedings as a family law attorney. Similarly, an agent that specializes in urban properties won’t be as familiar with the intricacies of rural properties as an agent that does it on a daily basis. Even as I write this, a fellow agent commented to me in exasperation “Is there ever a transaction that is easy any more?” The fact is that rural real estate has changed a lot in the last few years and “perfect” transactions are a lot less common. Having an experienced agent representing you can mean the difference between obtaining your dream property and a lot of disappointment.

4. Choose Your Priorities for a Property

Once you have an agent that you’re comfortable working with, it’s time to have a good heart-to-heart talk. To help you find the perfect property, your agent will need to know how much you can spend and as many details about your ideal property as you can provide.

A list of priorities is also helpful when you start visiting properties. In some cases you just won’t find everything on your “Perfect Property List”, so decide which features are absolute requirements, and which ones you could live without or add after the purchase. Look into the future especially if you intend to keep the property long term. Will it still work when you retire and could it be modified to meet your needs as you age? Finding the perfect property is often a process and your wants and needs may fluctuate slightly as you shop. Be sure to keep your agent abreast of those changes so the properties he/she suggests are relevant to your current desires.

With these simple preliminaries out of the way, you will be able to enjoy the property buying adventure. Before long your agent will introduce you to a property that you fall in love with and want to pursue.  He/she will be there to guide you through the negotiation process, inspections, permits, surveys, title commitment, etc.  With the proper preparation, you’ll look back at it and say, “That went well.”

Are you new to the real estate business or just new to selling rural land and farms? Are you not-so-new and finding it difficult to stay in the real estate business in the current market? If you are either of these, I have a few suggestions that might help you be more productive in selling rural properties. OK, so you are probably asking, “Why would I share that information with you?”. It’s simple. The better you are at doing your job, the easier mine becomes. Self-motivated really, but you stand to benefit too. I’ve been around this business for a good while. I’ve seen agents come and go. I’ve seen agents come and stay. Here are a few tips that I have picked up along the way:

1. Don’t be afraid to NOT know something. Some of the worst problems I have seen in selling land arise from an agent being afraid to say, “I don’t know.” As a young agent in particular, you are afraid that it will make you look unskilled and unprofessional. Let me assure you, professionals say “I don’t know.” a lot! The key to this is being able to follow that “I don’t know.” with a sincere, “But I will do my best to find out.” No one knows everything about real estate. Once you get this concept, you are on your way to becoming a good agent.

2. Specialize in a few particular markets within the real estate business. Do not try to be all things to all people. Selling a gas station is a world away from selling building lots on a lake. Your network of buyers, sellers, and supporting professionals will be very different for those. You can’t be great at doing one or the other if you cannot fully immerse yourself into that market. Many agents make the mistake of trying to list whatever is available to list. This is a recipe for burn-out. Again, you can’t be all things to all people. Take time to learn what markets are available to you. Markets may be geographically limited and some may not. They are all dynamic and nuanced, which is why you cannot professionally participate in all markets real estate.

3. Once you have established the markets that you want to work in, communicate with the people in that market. No, I do not mean put the sales pitch on everybody in the market. Get to know them. Get to know the other agents in your market. Be a service to the other professionals in the market. They are a great source of referrals.

4. Get to know the individual properties you are marketing. The important aspects of ownership vary with the type property you are selling. Figure out what these are for your market and have that information readily available when you are asked about it. Again, please, if you don’t know it, don’t make it up! If you are working as a buyer’s agent, you have to know that buyer in the same way a listing agent needs to know his properties.

5. You are better off with a few good, marketable listings than you are with a hundred over-priced, unmarketable properties. Don’t be afraid to walk away from a listing that you do not think is salable. Don’t shy away from letting a client know that his or her expectations are not in line with the market. This will save you a great deal of angst in the long-run.

6. Track your results from your marketing efforts. This will help you spend your limited marketing dollars more wisely. Avoid the shotgun approach. Find out what methods and sources work best for the market you are in. Then concentrate on doing the best job with those avenues that work best. Sellers will want you to go with the shotgun approach. You can be a better agent for them by being able to explain that you spend your efforts maximizing proven methods rather than trying to cover all possible options.

7. Ask for help when you need it. Sometimes new agents get in a deal that’s over their heads. If they are not smart enough to ask for help, many times they will bumble around until they loose the entire thing. You are better off bringing in a seasoned pro to help you and to share your commission with them than you are to loose the whole thing. Be quick to partner with an experienced, successful agent and learn from them in the process.

8. Do not take rejection as a personal affront to you. Business is business. Once you see something is not going to work out, move on to something that shows more promise. Be careful not to jump to quickly though. If you are having problems deciding if a deal is worth working on, talk with your broker. Good brokers want you to be spending your time working on good deals too.

These are a few things that a new agent can do to help themselves be more effective and profitable. There are many, many more aspects that new agents will have to learn. New agents will not know everything there is to know just because they have a real estate license. As with anything worth learning, it takes time and experience. As a new agent, you will have to learn to persevere in order to obtain that knowledge and experience.

One tool that I would like to suggest is the LandThink Community. There are seasoned land professionals participating in the forums there that will be glad to help you and offer their experiences. You will be more likely to get good responses from them if you participate in the forum so go there and start posting today!

In today’s market, many properties are competing for the attention of a relatively small pool of buyers. In many instances, properties are getting no attention whatsoever. I know that some properties garner a great deal of attention, so I know there are some willing buyers in the market. The key is positioning your property for sale in a manner so as to reach out to the pool of able, and willing buyers. Many sellers throw stumbling blocks out in front of their agent and marketing plans.

The largest stumbling block that sellers trip up their marketing with is pricing. They are afraid to ask too little, and not have any negotiating room when they get a potential buyer or they have the notion that they should pocket full market value for a property and anything an agent should make will have to be on top of that amount. So the result is they get no interest, no buyers, and no negotiations to use that built-in padding that they were so adamant they must have. In a buyer’s market, this is a failed strategy. The greatest agents in the world cannot reach into a buyer’s pocket and pull his money out for him…at least not in a buyer’s market. That’s what we are in, a buyer’s market. They hold the aces in today’s market. A buyer who is financially able to complete a transaction is a valuable asset to an agent. That buyer tends to be a bit more savy than the buyer who has more money than sense that sellers seem to be looking for. This is the first and biggest, but there are others. If you want to read more on pricing, take a look at my article from October 2010, Selling Land or a Farm? Get Serious on Pricing. If you want to help your agent get the property sold, get serious on pricing. The list price needs to be a price that the market is willing to support. Buyers are simply not looking at anything they perceived to be over-priced.

Sellers, listen to your agents. If you have a good agent, they will have advice on things that can be done to the property to get it sold. If you have an agent that has experience in selling your type of property, then they have seen things that worked and things that did not. It’s likely they have been involved in more transactions of your type of property than you have. You hired them for their expertise. Don’t handicap them by discounting what they tell you. Remember, their goal is to sell the property for the highest possible price in the shortest time possible, which is probably your goal too.

Here are a few more suggestions on things that you can do that will help your agent sell your property.

1. Remove items from the property that do not sell with it. If it’s not what is being sold, it’s clutter that will distract a potential buyer from the business at hand. Automobiles, ATV’s, storage buildings, and certainly anything that is considered as refuse. Buyers are completely turned off by the prospects of having to clean up your junk. They have their own to put in it’s place.

2. If you have an entryway into the property make sure it is neat and attractive. Make sure the entryway gates, if any, are in good repair and fill in that mudhole that is right in the roadway at the property entrance. In land, just as with houses, you must think about curb appeal…the potential buyer’s first thoughts about the property when they arrive. If you property does not have an entryway, consider constructing one that will control access to and from the property and give the property the look of something that is cared for. This can usually be done inexpensively and will pay big returns.

3. If you cannot ride over 75% of the property in a 4×4 vehicle, consider some trail construction. Constructing a 4×4 trail through a wooded area with a small bulldozer is usually very cost effective. Your agent is going to have a hard time selling something the buyers can’t see…most buyers are not willing to walk a half mile to see some aspect of the property until they have become VERY interested in it otherwise.

4. If the property needs to be surveyed, go ahead and get that done. Have the lines very well marked at least. Buyers want to be able to see the boundaries, know what’s inside the boundaries, and what’s not. Imagine yourself looking at a property and the guy trying to sell it to you says that the boundary is somewhere over there, and that corner is somewhere within a few hundred feet of here. You would want to know specifically, not generally. Make sure your agent is familiar with those boundaries.

5. If you are one of those sellers who is trying to sell a property without your neighbors knowing, get over it. Let the agent put up a good sign on the property and talk to all the neighbors. Many times they may be the source of the best leads to sell the property. They will eventually figure it out anyway.

6. If you have photos of the property in different seasons, give them to the agent and ask them to make them available to potential customers. That’s not something an agent can usually get on his own. Also photographs of game on the property or harvested on the property. These are things that wildlife-aware buyers will value.

7. If it is a timber property with significant timber value, get a timber cruise done by a registered forester and provide this information to the agent and potential buyers. It takes the guesswork out of timber valuation for them. Buyers guess low.

8. In properties with open fields and pastures, keep them reasonably mowed. A properly maintained field is one of the prettiest sights rural America has. Even buyers of wooded land get pepped up by a neatly maintained field on the property. It has a way of making a buyer feel like they know more about the property. It’s hard to get this advantage if you are looking out the truck window, eye-level with the briars and weeds.

9. In properties where there is a major water feature like a creek, pond, or river, make sure there is a place to easily access the water…a place where the agent can get the buyer out and to the water’s edge…maybe even throw a line in the water.

10. Make sure your agent understands the valuable aspects of the property by providing it to him in writing. If you really want to be helpful, format it so that he can hand it straight to a potential buyer. Think like you are selling the property to your agent. Your agent will appreciate it and talk about your property more than the others if he is “sold” on the property.

All of these suggestions are things that real land brokers have been telling their sellers for years. Savy sellers listen. Savy sellers are selling property for decent prices, even in today’s market. Many of the above improvements will not only shorten your marketing time and improve your chances of selling, but will also improve your property value…most of them more than the cost of getting them done.

“Who should I list my land with?” is a question I was asked this week by an owner in Mississippi. Since this owner was out of my area, I had to do some digging before I referred him to a top-notch land agent. Many landowners are faced with this tough decision once they have decided to sell their land and do so using an agent.

All licensed real estate agents are not equally good at helping you sell your rural property. If you owned an exotic car, you would not take it in for maintenance to a small engine shop for repairs. Listing your hunting land or farm with a predominantly residential real estate agent can be a mistake as well. Landowners need to choose an agent and a company that can market and sell their rural property in a way that meets the sellers’ objectives.

Since all real estate agents are not equally knowledgeable and skilled at selling land, how should you select the right agent? Here are a few suggestions from a land agent’s perspective that I think are fair and will help you choose a professional who can help you get the deal closed.

1. Ask your friends and family. Ask people you know who they have used to sell their land and if they would recommend them to you. This is usually one of the natural steps and most effective ways of finding someone you will feel comfortable with.

2. Google search for relevant terms like ”Land for sale in Perry County, Alabama” or “Alabama Land Agent“. If you are an out-of-state or out-of-area landowner who wants to sell their rural property, but you do not know anyone in the area this can be a helpful tool for identifying potential agents. Notice I said “identifying potential agents” because this is a preliminary step in the selection process.

3. After identifying potential agents, research how they market their listings. Pay close attention to how well an agent markets their listings online. Recent statistics show that over 80% of buyers preview properties online before getting in their car and driving to look at land. You will get an idea about how much effort an agent will put into advertising your listing. Will your land be visible to potential buyers? It needs to be in this market so that ALL possible buyers are aware that you have a quality piece of land for sale.

4. Professional Designations associated with agents who specialize in land. Look for agents who are members of the National Association of Realtors, a local board of Realtors, Realtors Land Institute (RLI), and have earned the title of Accredited Land Consultant. These agents are demonstrating that they take seriously their commitment to excellence in their profession. Having these designations may not mean much to potential buyers, but it does show that they have worked hard to gain knowledge and proficiency in the discipline of land. Agents that are Realtors have agreed to operate by and be bound to a Code of Ethics, which helps protect landowners in land transactions.

5. Ask a local real estate attorney. Contact a local real estate attorney in the area where you own land and ask them if they recommend an agent. These attorneys will know who closes deals and can help steer you in the right direction.

6. Interview several agents from multiple companies by phone or in person if possible. Talking to someone over the phone or meeting them in person will help you get a better feel for someone than by merely emailing. I recommend having a list of questions prepared when you meet. The two most popular are always: “What is your commission?” and “What is my land worth?”. I would also recommend asking how they market land, what is the average time for land to sell, what are the most recent comparable sales in the area, how has your business been lately, and is there anything I can do that will improve my chances of selling my land.

Once you have spoken to several agents and feel comfortable with one, ask them to take a look at your property, with you if possible. You never want an agent to give you a specific figure of what your land is worth without them seeing it. They should be able to provide a fairly close price range of where you should list it, but each property is different and has characteristics that will distinguish them from other properties on the market. List your property with an agent that is not afraid to get out and walk the boundaries and trails on your land. An agent sitting in the car and pointing out features to prospective buyers seldom helps an owner sell their property.

7. Once you feel comfortable with the agent, sign the listing agreement. For rural land these agreements typically run for a longer period of time than residential properties. Listing agreements may last 3 to 12 months, and in this market it may take 12 to 18 months to find a buyer for your land. Particularly if you own a large tract of land or if it commands a high asking price, you can probably expect it to take a while to sell. Here is a link to an article about what to expect at a listing appointment.

8. Lastly, check them out on Facebook or other social media. It is amazing what information you can find about someone on their social media pages. Many employers are using this as part of their vetting process for job applicants. You might find that you share common interests with the agent or that you are not fond of what you see on their page. This gives you a closer look at their personal life which can be useful information for you.

I hope you find this information helpful as you look for an agent who can help you sell your land at the right price, in a timely manner, and as smoothly as possible. By spending time researching and choosing the right agent on the front end, you can save yourself a lot of grief and disappointment in the long run.

1. Pricing your property accurately in the current market. An experienced agent will have the pulse of the current market in the area. They know the comparable sales history, and have a feel for what buyers are looking for and willing to pay. In the current market, I have seen buyers be sensitive within $100 to $200 an acre, so getting the right price is crucial to attracting buyer interest.

2. Marketing the property in media that buyers use. Placing an ad in the local newspaper may garner some interest, but one recent statistic says that over 80% of land buyers search for property online before going to look at land. As a landowner, can you afford to pay the monthly fees to advertise your one listing on land sites, and which ones generate the best activity? A good agent will give your land exposure to buyers in many different forms.

3. Answering phone calls and showing the property. Are you willing to field the phone calls of every person that wants to cut off the front 1 acre of your 120 acre tract? How many times do you have to give up a Saturday or take off work, only to be stood up by someone before that gets old?

4. Negotiating and writing the contract. The realtor’s job really begins once the contract is written and the negotiations begin. Going back and forth with tact and integrity can be taxing on even the most seasoned agent. Navigating emotions and potential hiccups is essential if the deal is to be transacted. Many owners appreciate not having to feel the heat of negotiations and can let attachment to the property or other emotions cloud the business transaction.

5. Professional networks. This past week I had to have a survey performed on a parcel we have under contract. I got 5 quotes from different companies before we were able to select the best price and the fastest service. How much time do you want to devote to getting quotes from surveyors? You need an agent with a network of foresters, surveyors, closing attorneys, builders, home inspectors, appraisers, lenders, bull dozier operators, bushhog operators, and a host of other contacts that service landowners. When you select a good agent, you not only get her, you get her whole network at your disposal. Keeping all of these people motivated and on track so you can meet your closing date requres a great deal of effort and attention on the part of the agent.

6. Accuracy at closing. Do you know how to read a HUD 1 Settlement Form and make sure that all of the numbers add up? This can lead to costly mistakes or even the loss of a deal in a worst-case scenario. These forms can appear to be written in a different language to the uninitiated. The agent will contact you at least 24 hours ahead of the closing to go over the HUD 1 and also provide you for instructions on what you will need to bring or be prepared for at the closing table.

These are a few of the ways land agents earn their money. Generally a good agent will help you make or retain more money than their commission. If you are on the fence about whether to strike out on your own or to use an agent, give them a call and become more informed. Ask the agent why in the world you should pay them a commission and see what they say. If you’re in Alabama and are considering selling, I would love a chance to earn your business.