Key Considerations in the Land Buying Process

Key Considerations in the Land Buying Process

When beginning the process of buying recreational hunting land in Alabama there is a host of considerations to keep in mind. In fact, these key considerations are so numerous many are overlooked in the selection process.  While overwhelming these factors are vitally important not only in finding the right tract, but they will ultimately determine your enjoyment of the land, and your return when selling.

When representing buyers I provide my clients with a list of these factors to consider. But I also impress upon my buyers to clients pare down all of these options to the top 5 most important characteristics in order to aid in the selection process. What are the “must-haves” and the “non-negotiable?” Here is a list to consider when buying land…..

  • LOCATION
  • WATER SOURCES  
  • RECREATIONAL HUNTING PREFERENCES – WHAT TYPES OF HUNTING IS MOST IMPORTANT?
  • TIMBER – INVESTMENT RETURN VS RECREATIONAL RETURN
  • PRICE
  • EXIT STRATEGY
  • ACCESS
  • SURROUNDING LANDOWNERS AND GAME MANAGEMENT
  • FOOD SOURCES
  • SOIL TYPES
  • UTILITIES
  • COST OF MAINTAINING THE LAND  
  • FOOD PLOTS AND SUPPLEMENTAL FEEDING
  • ROADS AND UPKEEP
  • EQUIPMENT  
  • AMENITIES – LODGE, POLE BARN, ETC
  • TAXES
  • LAND CHARACTERISTICS
  • TOPOGRAPHY
  • WETLANDS
  • MINERAL RIGHTS
  • HUNTABLE ACREAGE
  • IS THERE AN EXISTING SURVEY
  • EASEMENTS
  • LAND USE HISTORY

In a series of upcoming articles, I am going to explore many of these. For today we are going to look solely at Location which rightfully so is at the top of the list.

Travel time – How far is the land you purchase from your residence or office, door to door? The travel time to your land will impact how often you go there. Distance from home will be a factor in how easy it is to manage the land. Will you need a land manager, a company to help with wildlife services, planting food plots, etc?

Location determines the price you pay as well as your exit strategy in terms of resale. Some counties have micro-markets where dirt values are higher in a certain pocket of a county. In Bullock County, such micro-markets exist because there are many large landowners of 500 to several thousand acres. It is also home to the field trials and many named quail plantations. You can be sure that your neighbor has the same game management goals you do. They are planting food plots, supplemental feeding the deer, managing to QDMA standards, harvesting doe to control overpopulation and for the most part are shooting mature bucks only. While you may pay a higher dirt value to purchase the land you can rest assured the land holds its value better than most areas.

Location determines the quality of the land you purchase and the types of hunting available to you. For instance, the Black Belt region and outlying counties provide the soils and food sources that are major factors in the size of your deer, mass and quality of your racks, and your herd’s population. Water sources i.e. rivers and creeks provide better timber and food sources, cover for deer, roosting areas for turkeys, and potential duck habitat.

Location can determine topography which also affects wildlife quality. For example in Autauga County if you are south of CR 14 the land is level to gently rolling. It’s close to the Alabama River and the wildlife is bigger and more abundant. North of CR 14 the land begins to become hillier and even steep. The soils change and there are not only fewer deer per square mile but the size and racks are inferior.

Proximity to larger metro areas – If you are within an hour from larger metro areas you have a larger buying pool when you decide to sell. An example of this is the triangle between Montgomery, Columbus, and Auburn. That being said Birmingham buyers are used to driving two hours plus to get to their land and we have many buyers from Georgia and Florida who seek out recreational hunting land in Alabama.

Distance to timber markets can make a big difference in the value of your timber. How far are you from these mills? What types of mills are they? Is there competition or is one major mill setting the price?

Location can also adversely affect your land value. Are you are close to a high-crime town, a landfill, or surrounded by small landowners? Are there hunting clubs with the “If it’s brown it’s down” mentality?

For more information or if you need a consultant to talk about buying or selling land in Alabama call Pete Hall at 334 312 7099.

Pete Hall

Accredited Land Consultant

John Hall & Company

The Importance of Mapping Land

The importance of a good map and the benefits that come from them are too often overlooked and unrealized. There is a long list of uses that can come from maps and so many professionals whose careers are related to land, timber, wildlife, etc. depend on good maps. This article just highlights a couple of those important uses and how a good map can be a beneficial tool when making decisions and plans for your property.

Any map is better than no map, and multiple maps are better than one map! Maps are made up of layers in which different aspects of the land can be viewed based on what you are looking for. Topography maps show the contour of the land, aerial imagery shows you a picture from above, street maps, flood and water feature maps, soil maps, and the list goes on. Having a comprehensive map that overlays several of the layers onto one single map can be most beneficial. When it comes to land management and hunting, a good comprehensive map to use is one in which the aerial imagery is most current along with topographic lines overlaying it so you can visualize the contour of the property. The best and most detailed imagery maps are wintertime aerial maps. Having the imagery photo taken from the winter months helps you distinguish between evergreen trees and deciduous trees. In the south, this is most commonly seen as pine plantations and hardwoods. If the imagery is during the summer months it is very difficult to distinguish from the different timber stands due to all the foliage.

Having a good map should be the first tool used for land management planning and a tool that should and will commonly continue to be used throughout the process. Once you have established a goal for your property then the map can be used to help plan out the individual steps needed to be taken in order to reach that goal. From drawing and measuring out timber stands to cut or thin to identifying potential food plot sites. Having the topographic layer overlaying the imagery layer enables you to identify and plan management strategies like creating bedding areas and safe zones for deer in areas that the topography won’t allow for anything else. Maps can be used to plan and create roads through the property, strategize prescribed burning plans based on wind directions and the shape and size of the timber stand you’re burning. The list can go on and on!

When it comes to hunting, mapping can increase your chances of success dramatically. Whereas before being an efficient hunter it takes a lot of time in the woods and studying the game you are hunting to understand their behaviors and travel patterns. Using a map and having a little knowledge on how habitat and contour affect the movements and travel patterns of the game you are hunting, you can plan and strategize the best locations to put tree stands, pattern travel routes from bedding areas to feeding areas, plan entrance and exit strategies to stands based off of wind direction, etc. Having a map and studying it can improve your hunting success dramatically. One overlooked benefit from a map is that is also a great conversation piece! There have been many conversations with a map laid out on the table discussing where that big buck lives and how to approach hunting him!

There is so much that can be learned from mapping and with just a little time studying maps, a person can begin to understand property in much less time than it would take without one. They are a tool that professionals in industries related to land use day in and day out. Whether it is on your phone or on a printout as big as the hood of your truck, a map is so beneficial.

JH&C

Wetland Reserve Easements (WRE) and Benefits to Landowners

Wetland Reserve Easements (WRE) and Benefits to Landowners

Our team at John Hall & Company recently sold 456 acres of recreational hunting land off Hobbie Road in Montgomery County, Alabama. As land specialists, this was one of the more interesting and diverse tracts we had the pleasure of marketing this year. What separated it from other recreational hunting tracts was the property’s use of the Wetland Reserve Easement program (WRE) which is a conservation tool managed through the Natural Resource and Conservation Service (NRCS) under the United States Department of Agriculture. The WRE is a voluntary program that offers financial support to landowners who wish to protect existing wetlands or restore property whose wetlands have been drained for agriculture or some other purpose. This is accomplished by placing a conservation easement on the property or a portion of the property that qualifies for the program. According to the NRCS website “The WRP program offers landowners an opportunity to establish long-term conservation and wildlife practices and protection.” At the same time, it allows the NRCS to implement its goal “which is to achieve the greatest wetland functions and values, along with optimum wildlife habitat, on every acre enrolled in the program.”

I layman’s terms this means that the landowner is paid a large per-acre price to put the qualifying property into a conservation easement. By planting hardwoods or other trees protects and enhances the wetlands while also optimizing the habitat for wildlife. The landowner continues to have certain rights and use of the land such as hunting. And the landowner can choose to sell the land with the conservation easement in place as was the case of the 448 acres in Montgomery County.

So how does this really work and why could it be beneficial to you as a landowner?

The federal government pays the landowner a one-time per acre price on the acreage that qualifies for the program called a “GARP” payment as well as a percentage of the restoration costs to restore the wetlands. In exchange, the landowner is granting an easement on the land that qualifies for the program. The GARP payment, also known as the “easement value” varies from county to county. Both the easement value and the percentage of restoration costs depend on the duration the property is placed into the program.

For example, in Montgomery County, the easement value is $2880.00 per acre which often exceeds the market value of the land itself. You have the option of entering into an easement in perpetuity (forever) in which case you get the entire $2880.00 per acre payment plus 100% of the wetland restoration costs. Or you can choose a 30-year easement whereby the landowner is given 75% of the value of the easement value and 75% of the restoration costs. In either scenario, the NRCS also provides technical support through foresters, wildlife biologists, and other staff to help the landowner in the restoration process.

So the question most landowners wrestle with is this…. “Is the money I receive from the program worth encumbering my land (either for 30 years or in perpetuity) by giving the government an easement on my property?” This is an individual decision that differs from landowner to landowner. Let’s face it. We, as Americans, are inherently distrustful of anyone having the right to access our land and dictate what we can or cannot do, especially the federal government. But, keep in mind that in most instances only part of the property will qualify for the program. For an example of the 448 aces sold in Montgomery County only 202 acres qualified. This portion was placed into the conservation easement while the remaining acreage is unencumbered. So to find out the answer to the originally posed question there are other considerations you have to account for. The major ones that come to mind are “How will the WRE encumbered portion under easement affect the value of the remainder of the property that I own? Can I still enjoy the use of the land that is in the Easement? What rights am I giving up?” Let’s take a closer look.

 

Every easement placed on a property that qualifies for the WRP is unique due to the size, soil types, and history of the land. If you read the guidelines the NRCS initially puts out about the program it seems very restrictive as to what a landowner can and cannot do on the property after the easement is in place. However, after working with the local administers of the program we have found that the use and enjoyment of the property are not as limited as it seems. In fact, in some cases, you may not notice much difference at all with the easement in place.

Generally, the portion of the land that is enrolled into the program is reforested into hardwoods or restored to another form of its native habitat. In some cases, we’ve even seen longleaf pines planted if it is native to the area and the soils will support their growth. In the case of longleaf pines, you can burn them for best timber practices. While you are prohibited from building a permanent structure or destroying any portion of the land that is being restored you may reserve up to 5% of the enrolled for roads or green fields. You may continue to plant those green fields and keep up roads during the easement period. You can hunt the land. If there is a duck impoundment you may continue to drain and plant the habitat just as you’ve done in the past. All of these issues are determined before the actual restoration begins and governed by compatibility agreements agreed to with the permission and oversight of the NRCS.

Because it is a voluntary easement the landowner generally retains certain rights such as:

1) Title and the Right to Convey Title – meaning you still own the land and can sell the land with the Conservation Easement Agreement in place.

2) Control of Access on the land – although the employees at the NRCS can at any time come onto the property to inspect that the program is being adhered to. It is my experience that these employees are generally very considerate of the landowner and call to make an appointment if they are going to access the property. It’s also been my experience that such appointments are pretty rare, usually once a year.

3) Quiet Enjoyment – a very general definition would be that while employees of the NRCS have the right to access your land for inspection and other purposes pertaining to the WRE program, these employees of the government cannot engage in activities that disturb your right to peacefully enjoy the land

4) Undeveloped Recreational Use – The landowner can hunt, ride 4-Wheelers and ATV’s, etc. as long as you aren’t destroying any portion of the restored wetlands.

5) Subsurface Resources

6) Water Rights

What about value? If the landowner were to sell the entire property where 202 of the 448 acres are encumbered by the WRE conservation easement, how does that affect the property’s overall value? Does the conservation easement devalue the portion outside of the easement? What is the property worth that is in the easement? This is a little bit harder to ascertain. There is no rule of thumb or hard formula to go by but we can give very good estimates through our company’s database of comparable sales that have conservation easements and WRE programs in place.

But consider another scenario. As mentioned before, each situation is different both in terms of the easement and the family dynamics of the landowner. We often see where heirs of rural or recreational land don’t have the same emotional connection that the previous generation did. In some cases that don’t live anywhere close to the property and it’s simply an asset they don’t utilize. In that situation why not put the property into a 30-year WRP program. It’s almost like a generation-skipping trust. At the end of the 30-year program, the easement is lifted and you are left with an appreciating asset. The pine and hardwood trees planted at the beginning of the program are now harvestable.

Or if you as the owner or heir want to continue using the land for hunting or as a weekend retreat you still can still do so while the WRE program is in place. In both scenarios, the owner has been paid a large sum of money upfront that is likely more than what he would have made if the property were sold on the market.  He can live off those proceeds or use them for other investments and after the program is over he still owns the property! The value of the land after 30 years would then translate into a great investment for the next generation. From a financial standpoint, it’s hard to argue.

To find out what types of land qualify for the WRE program click on the following link https://www.nrcs.usda.gov/wps/portal/nrcs/main/al/programs/easements/

 

Pete Hall is a Principal and Broker at John Hall and Company, a full-service real estate firm located in Montgomery, Ala. The land division of the company works all over Alabama and specializes in transactions involving the marketing and sale of recreational hunting land, timber investments, agriculture, and pasture land, river lot and rural residential development, conservation easements,  gravel, and other minerals, mini-farms and more.

2018 AWF Wild Game Cook-Off

It was yet another record year at the 2018 Alabama Wildlife Federation (AWF) Cook-Off for the Tri-County chapter. John Hall & Company is proud to have participated for 15 years now and plan on doing so for many years to come! The attendance this year was higher than it has ever been with around 1,800 people visiting and enjoying all the different wild game dishes that were prepared by 40 different cook teams. Seafood, venison, bison, alligator, pork, and all the way to dessert! The list of dishes goes on and on. John Hall & Company prepared a dessert dish that seemed to be a favorite of many. Over 600 servings of banana pudding with a dash of Wild Turkey whiskey were served!

The AWF wild game cook-off is truly a great event. People and sponsors from all over come to participate and support. This event is not only a way to support AWF and their mission to teach people about the conservation of our wildlife here in Alabama, promote resource stewardship, and ensure the hunting and angling heritage for years to come, but it is actually accomplishing those goals. People whether they are avid outdoorsmen/women or have never experienced the outdoors at all are getting the opportunity to try and taste wild game and what Alabama’s wildlife and natural resources have to offer. Each attendee who purchased a ticket was given a one-year membership and subscription to AWF in hopes to engage their interest and educate people about the importance of conservation and the mission of AWF.

John Hall & Company is a proud supporter of AWF and will continue to because without organizations like AWF our way of life and the outdoors that we love so much would not be the same.