While so many businesses are suffering due to COVID-19, rural property is booming. Winter is traditionally real estate’s slow season, but the hot property land market isn’t cooling down. Land agents throughout the nation are still seeing document demand for rural lands.
The property market took off 2019 and has yet to slow down; ever since, it’s been no stranger to non inventory- it is among the largest challenges in the present market. Buyers are actively looking for and buying land, but there just isn’t enough property for sale to satisfy the growing demand. Whenever there are more buyers searching for rural land, and fewer sellers looking to list their land, the market is tipped from the vendor’s favor. This is commonly referred to as a”sellers market”.
The pandemic lockdowns, the upswing in the amount of businesses that have embraced remote functioning, and social unrest have buyers hunting feverishly for properties in small cities and rural towns. People are fleeing to rural retreats to have greater space whenever they’re quarantined. Additionally, historically low rates of interest and stock market uncertainty have experienced investors locking up safe haven assets such as land.
Hunting and fishing were social distancing activities before it was a thing. In a recent post, The Washington Post reported that officials in virtually every state have seen a moderate-to-massive spike in hunting in 2020. Here at LANDFLIP we can confirm that since the shutdown began last March,”farmland” and”off-grid” are the most searched keywords on the LANDFLIP NETWORK, and also the most viewed possessions are 100 acres or less.
Are you considering selling your property? Well, now might be the perfect time. As a landowner in a seller’s market, you are going to have the upper hand. Here are 3 ways low stock can help you win in case you’re ready to leap in and take advantage of this hot land marketplace.
With a lot more buyers in the marketplace than property available, sellers can expect to get a excellent price for their own property. The fierce competition because of low stock will often cause a bidding war. During bidding wars, buyers will make rival offers and push the cost, normally above what the seller initially asked for. As a vendor, this may potentially net you more for your property once the transaction closes.
The value of your property is dependent on what willing buyers on the marketplace will pay for it, but every purchaser is different. The more your property appreciates in the purchase price, the more benefit you’ll net at resale. Rising prices mean your property is going to gain value, which raises equity. Rural land is inherently an appreciating asset for two simple reasons: limited supply and growing demand. Land increases in value as demand grows for the limited asset. It is not a matter of whether or not land appreciates but instead how much it will appreciate. Unfortunately, it is difficult to predict an exact rate of appreciation, because that is based on things that are always shifting. Sellers can make improvements to their own property over years or decades to increase its equity value whilst enjoying it.
In the current marketplace, sellers are holding the upper hand. As a seller, you have the capacity to sell in your terms. After the land market is not as aggressive, deal additives such as particular improvements or asking the seller to cover closing prices are concessions the buyer can ask the seller to pay for in the contract. However, most seller concessions have been lost in a bidding war, since you don’t need to lure the buyer. If you are emotionally invested and searching for a buyer who will love, care, or keep conservation efforts on your premises, as a vendor in a hot market, you have the liberty to be selective in which offer to select.
If your in the market for land, our agents cab help you locate land for sale either before they come on the market or immediately upon listing. Contact our office to speak with an agent today.