Buying Land

Good First Questions to Ask A Land Broker

Good First Questions to Ask A Land Broker

For most, buying land is one of the largest financial transactions they will make. It is about more than just making a purchase – it’s an investment in your future. A real estate land agent can make or break your purchase, so it makes sense to ensure whomever you’re working with is the perfect agent for your needs.

With that in mind, it pays to know what essential questions to ask your land broker when you first begin working together.

According to Larry Bye of Mossy Oak Properties Hoosier Land & Farm in Marengo, Indiana, there are four primary questions to start off with:

  • How much experience do you have in the land brokerage business?
  • How well do you know the market values for land in the area?
  • What is the potential return on my investment for this land?
  • What are the possible property tax advantages that might be available for land?

While the hard figures regarding market values, returns and tax breaks will certainly be important, it’s Bye’s first question that may be the most important.

Experience is very important when searching for a land broker because there are many things that a buyer needs to be made aware of when searching for land to purchase,” Bye said. “There are some huge differences when brokering land compared to brokering residential properties.”

Blind spots regarding a broker’s experience also tend to be an issue buyers struggle with.

“A lot of buyers do not take into consideration the amount of experience that the broker may or may not have in the land brokerage business,” Bye continued. “Most buyers do not feel the need to choose an experienced land broker.”

This is a risky path to walk for buyers hoping to get the best deal and highest quality service. Bottom line is you have too much at stake. Not every individual with a real estate license is qualified to help buy rural land. While a license will make it legal to practice, an inexperienced land agent can end up costing buyers thousands of dollars and lead to major problems down the line.

Why are land brokers beneficial to land sellers?

An inexperienced land agent can do just as much damage to sellers as to buyers. It could result in a low profit and a lot of hassle.

If you’re seeking a good price for selling your land, you want to know you have someone in your corner who not only understands how the land market works, but is up to date on trends and economic factors in your specific area.

However, it’s also important not to get bogged down in your geographic location and box yourself in.

Sellers need to consider that the market for their land is much bigger than their immediate surrounding community, and out-of-region or out-of-state buyers may exist. Experienced local land agents have spent years developing techniques for marketing rural land. They know what works with buyers in your area and can create a plan that will get the word out about your land for sale. Due to this, the need for a land specialist with a broad marketing reach is needed.

Additionally, the various finance options buyers may use to purchase your land are important to consider. In the current market, many buyers are paying cash. Others are opting for financing or using a 1031 exchange when purchasing land. Some of these options may carry specific tax implications for the seller. In order to ensure that everything is done according to the exacting standards of the IRS, it’s vital to engage the services of a 1031 facilitator or qualified intermediary (QI).

Sellers must also think about the help they may need making sure their deed is clean, that all paperwork is in order and that any details regarding issues like easements and surface rights are handled correctly. This is where the services of a land specialist can make the most impact and avoid any issues.

Any way you slice it, am exceptional land broker is invaluable if you’re buying or selling land. However, it all comes down to choosing the right one, and you won’t be able to determine who that is unless you ask the right questions.

Keep that in mind the next time you find yourself seeking out a land specialist.

Article contribution by Mossy Oak Properties. The Mossy Oak Properties land brokerage network was launched in 2003 and has since grown to over 100 franchised brokerages in over 30 states throughout the country.

This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.

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