LAND – What’s All the Chatter About?
We have experienced more activity and interest in land during January and February of 2012 than any past January and February. Why is there so much chatter in the land market? What are buyers looking for?
Our statistics show more activity and interest in January and February of 2012 than nearly all of 2011. Could we be at the bottom of this far too lengthy economic turndown? Something has people out looking for all types of land. We have people looking for small to large timberland tracts to home places to institutional cropland investor types. We have had calls and sold tracts to people from Texas, Ohio, Virginia, Tennessee and Florida. Not all of the callers are buying but usually is a period of heightened interest before a period of buying.
We are in a time of intense buyer awareness. Buyers are spending considerable time learning everything they can about their target market and shopping hard. This is absolutely understandable after the last four years we have experienced. As a specialist, in the land market, we are required to provide good accurate information about the investment to help the buyer with their decision process. The buyer should require this of a land broker or find one that does have expertise in that target market.
Investing in real estate is more demanding in the current market. Capital is harder to obtain. Loans and credit are scrutinized much more closely. Correct valuation of the asset you are acquiring is more difficult to ascertain. Consumer confidence and the political environment are also contributing factors. There are risks associated with any investment, including land. However, land has always been a sound investment and should be a portion of most people’s investment portfolio.
We are not sure why there has been a spike in activity and interest in land. Maybe confidence is returning and investors want to jump in at what they think is the bottom or want some land as a hedge against coming inflation. We don’t exactly know what is happening but want to inform you that it appears there is a change occurring in our land market. Let us know if we can assist you in your search for land and we hope you have a prosperous 2012.