3 REASONS NOW IS A GREAT TIME TO SELL LAND
3 Reasons RIGHT NOW is a great time to Sell Your Property
Seriously? In the middle of a Pandemic? How can right now be a good time to sell land?
I’m sure these are all questions running through your mind. However, once you understand these 3 points, you’ll quickly see now may be the best time to get your property on the market.
#1 The pandemic has created an explosion in Demand for Rural Land
The phrase “Rush to Rural” has been thrown around to describe the explosion of people leaving major cities in favor of wide-open, remote, safe places to spend with their families. With good reason, folks in places like Miami, New York, and other major cities are moving to more rural settings. Though maybe not as noticeably, this is happening right here in Iowa too. In the past 4 months, KILOTERRA™ has sold through almost all our inventory. Our traffic numbers to our website and partner platforms where we advertise is up nearly 300%. The sheer number of customers looking to buy land is almost unbelievable. And, the supply of these rural, recreational and building type properties is WAY behind the demand. So, if you have land to sell and are considering waiting, it may be worth reconsidering.
#2 Interest rates are at an all-time low, creating even more able buyers
Unfortunately, a % of people been negatively impacted financially as a result of the pandemic. However, the silver lining in the current situation is Interest rates are incredibly low. Everyone is in a re-finance craze, and with lower mortgage payments, comes more discretionary income. Now, many of those who were unable to buy land in the past suddenly find themselves ready, willing, and able to buy.
#3 Investors are looking for a Safe Haven for their funds
Many savvy investors saw the writing on the wall early in the year. At the first signs of a drop in the stock market, they were quick to pull out their funds. Now, these clients are eagerly looking to Farmland as a safe-haven to diversify their investments. In many cases, these buyers are prioritizing the stability of Cash Rent over the actual return rate. In certain situations, where a landowner is looking to begin the transition into retirement, but wants to continue farming, this can be a sale with lease back rights can be the perfect option.
What does this mean for you?
As an owner of Iowa Farmland or a Rural property with Recreational opportunities or Building Sites, you can take comfort in knowing there will always be demand. What you can’t predict is what future buying trends, supply, or interest rates will be.
Due to the 3 Points mentioned above, our Clients are currently seeing 2 major benefits when selling right now:
Land is selling faster than usual
There’s always the caveat that the property must have some certain characteristics that make them universally appealing, and depending on the situation, speed of the sale may not matter. However, in cases where folks are retiring from their farming operation this fall, or considering selling later down the road, I would strongly encourage you to get in touch with one of our agents today to discuss the market in your immediate area. It’s possible we may have someone ready to buy already. Recently, we’ve sold numerous properties within 24 hours of hitting the market. While not typical, we certainly strive to do all we can to help our clients sell their land fast. However, some don’t need to sell quickly and prefer to hold out for a higher price. Our objective is to serve your specific needs, so we can create a strategy to maximize sales price too. Fortunately, with low supply and increased demand, we’re seeing higher than typical sale prices.
Landowners are generally obtaining higher than typical sale prices
While we have no way to guarantee your property will bring a premium, our experienced agents always perform a thorough Comparable Market Analysis for the properties we sell. This gives you a realistic expectation of what your farm may bring, before we put it on the market. In the past few months, we’re generally seeing the average price increase several percentage points from this same time last year.
Considering Selling your Land? Want to know what your property is Worth? Our team will compile an estimate of your property’s fair market value. Simply Click Here
KILOTERRA™ is an Iowa Based Land Brokerage specializing in the sale of Farmland and Rural Properties. From Acreages and Hunting Farms to Pasture ground and Row Crop Farms, we have you covered. To schedule an honest review of your farm’s value, contact us today. Click Here