CHOOSING A LAND BROKER FOR RURAL LAND NEAR HOUSTON

One of the questions I get asked the most often is “Why would I need a land broker when I can browse the various land websites myself?” Another question is “Why use a rural land broker when my best friend is a well known residential Realtor?” These are good questions. Let’s talk about them.

Looking at listings on a rural land website is a lot of fun but is just the beginning of the journey to finding or selling a property. Why should you work with a land broker and what should you expect from them?

• Professional Land Agent vs Residential or Commercial
• Work with only one Land Broker
• Reach (not just local)
• What is their reputation in the Rural Land Community
• Familiarity with related disciplines
• They will organize the process
• They will prepare a marketing plan
• They will prepare a comparable market analysis
• They will prepare checklists as needed
• They will provide vendor contacts
• They will provide ongoing communication
• They will assist with the earnest money contract
• They will assist with the closing and beyond

PROFESSIONAL LAND BROKER VS RESIDENTIAL

If you want to buy rural land choose a rural land broker. All serious real estate agents (hopefully they are Realtors) specialize. A professional agent will be a pro in a particular property type; residential, commercial, industrial, retail, office, etc. Often they will operate in a defined geographical neighborhood.

Land Brokers are no different. They specialize in rural recreational, farms and ranches, country estates and so on. They have their own professional association (Realtors Land Institute). They have their own professional designation (Accredited Land Consultant). They regularly attend courses, networking events, conferences and seminars. Their geographical reach will usually be quite extensive often including several counties. Their relationship reach in the land community will also be broad.

I recommend choosing a professional land broker with an impressive background. An Accredited Land Consultant (ALC) is awarded by the Realtors Land Institute after a rigorous program of experience and education. Brokers with this designation represent the top tier of the rural brokerage community.

WORK WITH ONLY ONE LAND BROKER

After choosing your land broker stick with them. Sign an exclusive right to sell real estate (or a Buyers Representation Agreement) as the case may be. A successful transaction requires a high level of trust and cooperation between the client and the land broker. Dealing with multiple agents or restricting your land broker will almost surely complicate the journey and add to the time it will take. This applies to buyers as well as sellers.

REACH BEYOND LOCAL

The land broker you choose might not necessarily be a local broker. I know this may be sort of a contrarian viewpoint but let me explain. Unlike a residential neighborhood, rural market areas can spread over significant distances. One example would be deer hunting properties in South Texas (at least 40 counties). Another example would be my market area of rural land near Houston (up to 100 miles from Houston). The rural land market isn’t just the physical location of a property but also the location of potential buyers. If you analyze the ownership in the counties of the two above examples you see that in most of the counties have an inordinate number of folks from Houston owning the land. This is what we call reach.

WHAT IS THEIR REPUTATION IN THE RURAL LAND COMMUNITY

Your land broker’s standing in the larger rural land community is important. Working and communicating with other land professional is crucial. The old days of the pocket listing is long gone. You want your land professional to have a wide set of contacts in order to better market your property (or help you find one).

Membership in various land related organizations is a good sign of being connected. For example, the following are land broker related organizations; Texas Alliance of Land Brokers (TALB), Texas Land Brokers Network (TLBN), Realtors Land Institute (RLI), various Realtors Associations, and the International Right of Way Association (IR/WA). Another way to assure that a land broker is a leader in the land community is their frequent attendance at various educational seminars. Ask any potential professional land broker you are considering about their ongoing involvement in their professional development.

KNOWLEDGE OF RELATED DISCIPLINES

Years of professional development and experience will expand the land broker’s competence in related areas such as; appraisal, rights of way, easements, water rights, oil and gas, conservation easements, wildlife habitat, like property exchanges (1031), environmental issues and many more. Ask a potential broker about their professional designations and certifications.

ORGANIZING THE PROCESS

Your rural land broker will do the right things at the right time. The journey into buying, selling and owning rural land can be productive, educational and fun. Alternatively, it can be inefficient and frustrating. There are many steps involved in reaching your goal and they should follow a proper sequence, require a lot of information, detail management, and involve a lot of folks in other disciplines. Your land broker will navigate all of this for you.

PREPARE A MARKETING PLAN

If you are a seller ask your land broker to provide you with a comprehensive written marketing plan. Marketing rural land today consists in large part by using internet marketing. Your property should be displayed on numerous rural land related websites. Your broker should have a well developed website. Many websites are just a static brochure rather than being constantly refreshed. Ask them about the professionals they use to manage their internet outreach. Discuss whether to use a professional photographer with your stills and aerials. Will your land broker have professional brochures developed to present at land organization meetings? Consider advertising in high end magazines. Not all of these suggestions will be appropriate for all properties. An old fashion sign on your road frontage is always good. Marketing is expensive so agree on a budget and who is responsible for which items.

PREPARE A COMPARABLE MARKET ANALYSIS

If you are a seller ask your land broker to provide a comparable market analysis (Broker Price Opinion). This not an appraisal but will give you a good idea of what your property is worth. This report will include actual sales of properties similar to yours. If you are a buyer ask your land broker to prepare a comparable market analysis of any property you are going to make an offer on. Spend time with your land broker regarding values. This will one of the most important contributions they can make.

PROVIDE CHECKLISTS

If you are a seller you will need to provide various disclosures and general information about your property to potential buyers. Ask your broker to assist you with this. They probably have a standard property checklist they use. If you are a buyer ask your broker to prepare a checklist of any property you are interested in seeing. This checklist is not an extensive due diligence document but rather information which will establish a baseline for comparison of properties. Having said the above regarding checklists, do not expect your broker to provide this service unless you are particularly interested in seeing the property.

PROVIDE VENDOR CONTACTS

Your broker will provide invaluable time saving service to you by recommending vendors specializing in rural land such as; attorneys, appraisers, accountants, insurance agents, title companies, surveyors, lenders, windmill contractors, fence contractors, inspectors, dirt contractors and the list goes on.

ONGOING COMMUNICATION

Establish a schedule of written or spoken communication with your broker. A monthly status report may be helpful to both of you. This is not an item that needs to be rigid but it should be ongoing. Perhaps they might contact you after each showing or once a month.

ASSIST WITH EARNEST MONEY CONTRACT

In the case of rural land you will usually use the Texas Real Estate Commission (TREC) Farm and Ranch Contract. This is a 9 page form with 24 sections. Your land broker is familiar with this contract and will fill help you fill it out. Ask them to explain each section with you before signing. There may well be changes in the document as negotiations proceed. Again your land broker will advise you during this process. Your broker is not an attorney and cannot provide legal advice. You should consult with an attorney regarding any legal issues. The time between final acceptance of the contract and closing could range from a week or so to several months. Your broker will be available to you for questions and possibly for contacting the various parties (particularly if financing is involved) during this period.

ASSIST WITH CLOSING AND BEYOND

Your broker will be happy to recommend a title company if necessary. They will deliver necessary documents and checks. The broker does not have to be present at the closing but will attend if you ask. There may be last minute questions. After closing you will probably have questions particularly about vendors. A good land broker will be available during this transition period.

CHOOSE AN ACCREDITED LAND CONSULTANT (ALC)

When buying or selling rural land it is crucial to choose a professional land broker. I recommend using a broker with the Accredited Land Consultant designation. An ALC will have the experience, education, knowledge and contacts in the land community that you need. Make the process fun and efficient rather than frustrating.

CHECK IN WITH US

Allen Realty Advisors represents buyers and sellers of fine quality rural land near Houston. We specialize in weekend retreats, country estates, farms and ranches, recreational property and investment land. Our market area is generally within 100 miles (two hours) of Houston.