According to the November LANDTHINK Pulse results, 27.8% of respondents indicated that if they were to purchase land today, they would likely begin making improvements or building on it in 1-6 months. Land is a valuable asset, and taking the initiative to increase its value may be one of the smartest things a landowner can do aside from the initial investment.
November Pulse Sponsored by
The land you purchase will likely be one of your most valuable assets, especially if you plan on owning it for a long time and make improvements that significantly increase its value. Unlike other assets like stock and bonds, land can be connected to memories, experiences, and feelings. Your land may also have significant personal value. Deciding what to do with your land after the purchase brings with it the challenge of providing for both these financial and personal needs.
Last month, the November Pulse asked: If you were to purchase land today, how soon would you likely begin making improvements or building on it?
Results from last April’s LANDTHINK Pulse reiterated the same sentiment among buyers. It revealed that 31.4% of buyers purchased land with one goal in mind- to live on the property. Buying land and building a home gives a buyer much more flexibility and freedom than purchasing an existing home does. Whether you dream is to live on many acres, design a homestead property or purchase a residential lot for sale, there are many types of land available for interested buyers on LANDFLIP. Based on last month’s results, land buyers aren’t scared off by fixer-upper properties, and are eager to purchase one that can be customized to suit their wants and needs.
Last month’s survey results were all over the board, but the majority of respondents (27.8%) indicated their desire to build or make improvements on their land within 1-6 months after making the purchase. Coming in a very close second, 24.6%, said they wanted to add value to their land IMMEDIATELY after buying it. This was followed closely by 21.5%, who indicated that their time frame for making improvements was 1 year or longer. Only 17.6% said they would wait 6-12 months after buying land to make improvements that could add value, and just 8.4% said that if they bought land today, they would NEVER build or improve upon it.
The number of people itching to build or make improvements on their land so soon after purchasing it could be partially attributed to urban Americans leaving larger cities en route to rural areas, when work-from-home policies made mandatory by the pandemic became standard. The advent of COVID-19 is compelling Americans to relocate to rural communities and live on acreage, where low population density makes social distancing not only easier, but practically automatic. Buyers are realizing that owning rural land is a great way to put a buffer between them and the madness caused by the pandemic- the privacy it offers gives country houses, rural property, and acreage properties a certain allure. Owning land that can be used for camping, fishing, hunting, ATVing, hiking, and other activities that provide a healthy dose of nature while still practicing good social distancing.
There’s been a recent buying frenzy in the land real estate market, evidenced by the staggering growth we’ve seen at LANDFLIP this year. As of late, it’s been a seller’s market, and rural land for sale has become harder to find and more expensive. There are advantages to buying land that needs improvement:
1. Land that needs improvement is cheaper than turnkey properties in the same area. This often means they can purchase land for sale in an area that would otherwise be unaffordable, or the opportunity to purchase more acreage than they thought they could afford.
2. Buyers can customize the land and turn it into the dream property they’ve always envisioned owning. Obviously, everyone has different priorities, but the beauty of buying land that needs work is having free rein to choose certain elements you want in your dream property — everything from hunting enhancements and improved vegetation to the addition of a water feature.
Landowners can use a wide range of strategies to add value to their land, according to United Country Real Estate. In their LANDTHINK article, “Improving Your Land”, they offer ideas for improving land through infrastructure, vegetation, food plots, and the addition of a water source that can pay dividends for generations to come.
Buyers should enlist the help of an experienced land agent, who can offer advice and contacts to help buyers understand what they are getting into when they decide to buy land to build a home or to buy land that needs improvements, in order to ensure they are making the best decisions.
Thank you to everyone who participated and shared the Pulse with friends and connections in the land industry. LANDTHINK would like to extend a big thank thank you to Farm Credit Associations of Georgia for sponsoring the November Pulse and for choosing a very interesting question to pose to our audience. When it comes to financing land, farms or homes, buyers have several options. Farm Credit Associations of Georgia offers advantages that aren’t available to buyers with other lenders. Their commitment and experience lending to agriculture and rural Georgia make the difference.
Become a Pulse sponsor! It’s a great way to ensure your brokerage is the first one buyers and sellers call when they have a need to buy or sell property. You’ll get insane exposure on Social + Email + Web. That’s 500,000+ monthly eyes on you! Once you have it, you won’t want to give it up! Pulse sponsorships are offered on a first come first served basis and are subject to certain limitations. If your business would be interested in sponsoring a Pulse question, please contact us soon.
Do you have a suggestion for next month’s Pulse question? Submit your question and we might choose yours!
We want to know what you think about our December Pulse question, chosen and sponsored by The Land Show with Dave and Johnny: When searching rural land for sale, which social media platform are you most likely to use? Answer now.
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