Why 2022 is the Best Time to Sell Land in Alabama

 

 As we begin a new year, you have probably started thinking about your goals for the year ahead: the exercise routine you swear you will accomplish, the stack of books you want to read, and the major financial moves you want to make for yourself and your family. If you own land in Alabama and have considered selling, this could be the best year to list it and maximize your profit.

 

Seller’s Market

 

Now more than ever, it is the ideal time to sell land. Demand for land is at an all-time high; at the same time, there is a shortage of prime land available on the market. The increased demand and low supply have caused land values to increase by around thirty percent.

 

There are a number of factors that have contributed to the current seller’s market: low interest rates, more expendable income, and an increased desire to escape city life.

 

Low Interest Rates

The Federal Reserve typically lowers interest rates during periods of economic decline and uncertainty. As the economy continues to recover from the effects of the coronavirus pandemic, interest rates remain at an all-time low, and experts expect them to stay low as we head into the new year. The rates have brought more borrowers to the market, as they look to lock in their purchase at a low interest rate. The low rates also impact buyers’ purchasing power because it directly impacts their overall monthly payment.

 

More Expendable Income

The Paycheck Protection Program and Economic Impact Payments pumped more cash into the market. The increase in expendable income has allowed people to consider more luxury purchases, including investing in land and property. Buyers are ready to consider big purchases with more money in their bank accounts earning very little interest.

 

Increased Desire to Escape City Life

As the world locked down in 2020, kitchen tables suddenly transformed into office spaces, and backyards started to feel small. The coronavirus pandemic left many people seeking a place to retreat. It renewed the desire to escape city life for the great outdoors. Whether they want a premier hunting plantation or land on the river, more buyers throughout the state and country have entered the market to purchase beautiful Alabama lands.

 

Even in a seller’s market, the brokerage firm you use to list your property can have a huge impact on how fast the process moves and the return you make on the sweat equity, vision, and stewardship you have poured into your land.

 

John Hall & Company Difference

 

The team at John Hall & Company boasts many years of experience helping clients sell land, including premier hunting plantations, investment properties, conservation easements, mini-farms, agricultural land, pastureland, and rural residential lots. In our almost thirty-five years, we have sold over 350,000 acres. Our land consultants are true experts with experience ranging from a Certified Commercial Investment Member (CCIM) to a past president of the Alabama Realtor’s Institute. All of our specialists are also landowners who know what is important when considering land sales. From the first call to the closing table, our employees have the skills, knowledge, and connections to walk you through the entire process of selling your property.

 

Personalized Process with Valuable Services

We know every piece of land is different and unique. The process of listing your property for sale is customized to you and your land. We want to get to know you and answer your questions. What improvements do I need to make to my land? What will help my property stand out to potential buyers? What is my land’s true worth?

 

Our brokers have years of experience and knowledge about managing land and important aspects to consider. We can assess your land and give suggested improvements to make it even more marketable. We work with you to find what makes your land unique and help showcase its one-of-a-kind features to potential buyers. We are also able to provide a free broker’s opinion of value to be sure you list at the right price. Our extensive database of comparable sales that gives empirical data on current market prices helps us ensure we are advising you to sell for the correct price. We are familiar with land throughout the state and even know the micro-markets that add value within various counties.

 

The marketing of your property can also help it sell for top dollar with minimal time on the market. Many firms use a “one size fits all” model to market their listings. Utilizing traditional and digital marketing, John Hall & Company creates a marketing plan customized specifically for your property. Drone footage, email blasts, and our website are just a few of the ways we make sure your listing is properly showcased to potential buyers. We are a local firm, familiar with the area, who can market your property on a local, regional, and national level.

 

In addition to selling your land, we offer additional services to you. We are skilled at mediation and land division. If your sale involves multiple family members or other co-owners, we can work with you to be sure a fair and equitable division of the land is achieved. We can also provide wildlife management plans, forestry services and timber cruises, and mapping.

 

Relationships throughout the State of Alabama

All of our relationships are built on the foundations John Hall laid when he started the company: integrity, service, and practicing the golden rule.

 

We build and foster relationships with all of our clients. Selling your land is an education process for all parties involved. We get to know you and your needs. In addition to answering your questions and guiding you through the process, we’ll also ask you questions to find out what your objective is for selling your land. We work to ensure we meet the goals that lead you to sell your property.

 

Relationships matter when marketing your property too. As a boutique firm, John Hall & Company prides itself on having relationships throughout the state of Alabama. We have qualified buyers ready to purchase property and can connect the right buyer to the land you are selling. We truly love finding buyers who will value and appreciate the land as much as you did. In the current market, the average time it takes to sell a property with John Hall & Company has been virtually cut in half.

 

Using our network, John Hall & Company sold multiple properties before they even hit the market in 2021. From a thirteen million dollar sod farm to a six hundred and seventy-eight-acre plantation, we had buyers ready and waiting to purchase land.

 

“Pete Hall and his team helped me by securing a property they had listed in Dallas County. We then added additional property through their relationship with the trust department of the local bank. They also helped connect me with various experts in their field such as foresters, farmers, the local office of the Farm Service Agency and more. ” David Chadwick

 

We also have relationships with other experts. When you become a John Hall & Company client, we introduce you to our network of advisors in the fields of financing, forestry, wildlife biology, surveyors, closing attorneys, and more. Whether you need a land survey or wood infestation report, we can connect you with the right people to get the job done with excellence.

 

As land values have increased and the time it takes to sell your property has decreased, there has never been a better time to sell your land. Are you ready to list your property? John Hall & Company has almost thirty-five years of experience helping families buy and sell land in Alabama. We are ready to help you through the important decision of selling your property. Our team of experts is here to guide you through the process and help you make the most money from the sale of your land. Give us a call today.

Invasive Plant Species – What To Look For

As a landowner, you spend countless hours working to reach the full potential of your property.  Many times, a tract of land can be overrun with invasive plant species in a surprisingly short amount of time. This can cause a detrimental effect on your timber value and the recreational/aesthetic aspects of your land. There are countless numbers of undesirable plant species that could be found on any one piece of property, but being able to identify and manage the more problematic types can be very beneficial.

The first species that comes to mind and that arguably has caused the most impact in Alabama would be Kudzu. During the spring, kudzu can grow nearly a foot a day and can cover anything from trees to buildings. It is vital to begin herbicide application during the early stages before taking over pine plantations or any other desirable areas.  Originally introduced as a favorable species for erosion control and forage for cattle and livestock, it is now commonly known as “mile a minute vine” that has invaded the southern landscape.

The second invasive species that has had a significant impact on the South is Cogongrass “imperata cylindrca”.  Like kudzu, this plant is highly invasive and has had adverse effects on our plant and animal communities. Identification is the first step in the proper control but can be tricky due to its similarities with non-harmful native species.  Its most commonly found along road-sides but this pesky plant is also known to completely take over pine plantations and can adversely affect cash crops such as corn and cotton. Many undesirable species are often controlled by fire, but cogongrass, naturally causes the plant to thrive in its environment. This causes increased fire intensity resulting in damage to existing timber.  Persistent herbicide application is the most effective way to manage along with early detection.

These are just 2 of the important undesirable plant species that can affect a tract of land. Other plants of note to consider when managing property or purchasing a piece of the property include Chinese Tallow Tree, Chinese Privot, Mimosa (silk tree), autumn olive, and even aquatic species. All of these can negatively affect wildlife and the investment potential of a tract of land. Detecting these undesirables early allows for cheaper eradication control and more time spend doing the things we enjoy in our great outdoors.

Robert Smith

(251) 564-1312 

[email protected]

How aesthetic appeal can improve your land values

There are many ways in which a landowner can get an idea of how much their property is worth. John Hall & Company along with other land brokers can give a landowner their opinion of value simply based on recent comparable sales in the area. There is also the route of hiring an appraisal company to provide you with the value of your property. The total value for a property can be broken down into sub-categories to come up with the total value. Many recreational and timber properties can be broken down to the “bare land” value, timber value, and value of amenities. In this article, I want to share my thoughts on the aesthetic appeal of a property and how it can affect the “bare land” value of your property.

The aesthetic appeal to a property can be the difference in the land selling at $900 an acre for the “bare land” or $1,300 per acre for the “bare land. It is nothing more than the aesthetic appeal but adds value to your property. The location of a property has a lot to do with the “bare land” value of a property but if the property is not maintained or provided some TLC you will not see the same return in value. The aesthetic appeal of land can consist of something as simple as mowing and trimming limbs along a road system. Think of it as vacuuming your home and mowing the yard. If you were trying to sell your house and you had not vacuumed your home or cut the grass in over a year, do you think the potential buyers who come to view the house would even make an offer or if they did do you think they would be willing to pay a premium price? A few other aesthetically pleasing but small costs that can improve the value of your bare land can be planting fruit trees or other mast-producing trees around food plots, having a gated entrance to the property, adding culverts to creek crossings, or adding rock to creek crossings to give it a hard bottom. To compare to residential real estate think of this as decorations and furniture to make the home look better.

When buyers are viewing properties, and see that a property needs a lot of upfront work they most of the time discount the price they are willing to pay. This is to adjust for the upfront costs they will need to apply to the property when purchased. The value of the “bare land” in negotiations, although many times not specifically stated, is typically the value that will fluctuate the most. Buyers are willing to pay more for a property that is maintained and accessible over properties that are not. Recreational buyers tend to be willing to pay more for the property than timber companies or individuals strictly interested in the timber. Therefore, in order to obtain the best value for your property, it may be beneficial to manage your property catered towards recreation. However, this does not mean the timber value is not important because it can be a large portion of the total value of the property.

A maintained property is an aesthetically pleasing property. It is in the best interest of the landowner to keep that in mind if they are looking to obtain the best value possible in a sale. Sometimes landowners do not live nearby, have the time, or have the ability to maintain their property, and in that instance, we suggest leasing the hunting rights out. A hunting lease can be structured so that your roads will be maintained, food plots will be planted, and the property will be accessible.

John Hall & Company would be pleased to assist you with your land needs and would be happy to provide our opinion of value. John Hall & Company has been in the business of selling land since 1987 and we would be love to talk land with you!

Hoke Smith IV 

334.322.2683

[email protected]