Editor’s Note: This is the eighth in a question-and-answer series with land real estate professionals — land agents, mortgage brokers, auctioneers, attorneys, timberland professionals and more. There’s a lot of information about the national real estate market out there, but it’s tough to find answers to your specific land real estate questions — until now. LANDTHINK believes that a lot of the stress of buying, selling, and owning land can be reduced or eliminated with some simple information from some of the best in the land industry.
Landseller Question:
I have a rookie land seller question. My in-laws own a little over 75 acres of land just outside a growing suburb in Tennessee. They are getting old and want to sell, but they’re not sure of the best way to sell or market it. The land could easily be divided into lots for development, sold as farmland, or sold in its entirety to someone who wants a private, rural home, etc. What type of professional can give them a sense of what their property would be worth in each of these scenarios? Would it be a special appraiser? There are not a lot of appraisers in the area and the ones that are all seem to be tied to banks and assess homes. Would a land agent be the best choice? Is there another type of professional that I don’t know about? Any help and suggestions would be appreciated.
Jamie Spencer, CRB, Owner, Mossy Oak PropertiesTennessee Land & Farm
Great question, this has come up a lot for us here in Tennessee as we have been a hot bed for folks moving into our area. The market just outside of Nashville has certainly seen a rise in popularity over the years, and with that has come more homes and more development in what used to be rural areas of Tennessee. A professional land agent who is an expert in the area where your in-laws have their land is a great place to start. A professional land agent can help you decipher the best route for the property and there can be quite a bit of due diligence done to help make the decision on which route is the “highest and best use”.
Let’s start with some things that need to be identified to consider it going the development route (divided into lots/subdivision). Most counties have adopted a long range plan as it relates to growth in the community. Does the property fit into the county’s long range plan for residential development? If the land gets sub-divided by a surveyor with the intent of developing lots, are there suitable utilities available to support those lots? Public sewer or private septic system? If private septic is the only option, does the soil lend itself to perk? How big is the county water line that feeds the property and will it support future development or will a water well need to be drilled? Is the ingress/egress into the property sufficient? Will the road need to be widened? These are just some of the questions that need to be reviewed by a land agent before making a decision on going the development route. Certainly this plan could bring the most money for the property, but it also may be expensive on the front end to get there.
If dividing the property into lots does not seem feasible for whatever reason, then a land agent can help you list it as farmland, or a recreational tract or as a potential private setting for a someone who may want to build just one home on it. Either of these routes are fairly easy to pursue, and usually end up being the highest and best use. There should be numerous comps of similar properties available to review to help price the land as you go this route. So many folks who live and work in Nashville are looking for this exact scenario. A getaway within 1.5 hours of Nashville where they can take their family to relax and recreate. A land agent can help you walk that path on the front end and answer the necessary questions that will result in making the best decision for your in-laws. At the end of the day our job is to “make you the most money we can” so we are well-versed in putting in the due diligence to help our sellers achieve that goal.
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