Secure a Buyer’s Agent

Sellers have representation. Buyers should, too. Those looking to find a piece of land to buy should secure a buyer’s agent.

“Have someone looking for land for you who knows the land, and more specifically, the type of land you want to add to your portfolio,” agreed Katie Graeb, a Whitetail Properties Land Specialist and Team Leader in South Dakota. “Benefit from the advantage of being among the first to know about land that hasn’t even hit the market yet.”

Oftentimes, landowners become interested in acquiring land adjacent to that which they already own. Or they’re interested in other properties they know about. The best approach to this is consulting a buyer’s agent. Allow them to contact landowners of interesting properties.

Justin Mason, a Whitetail Properties Land Specialist in Illinois, says that Land Specialists utilize a wide range of tools and their network to quickly and effectively find what people are looking to buy. By tapping into key resources and broad reach, they often find opportunities for buyers that may not even be publicly known.

Be Willing to Start Small

Most first-time land buyers don’t kick off the initiative with large-acreage properties. Generally, it’s less than that, and requires starting small. Then, building over time.

“For newer buyers looking to start investing in land, everyone thinks about it as if they’re buying property for the long term, and that they need to find the perfect one,” said Joe Sangimino, a Whitetail Properties Land Specialist in Montana. “They think it must check all the boxes because they’re going to own it forever. In reality, most people end up selling more often and frequently than they realize. While some hold long-term, the majority end up selling sooner.

“With that in mind, it’s OK to start small,” Sangimino continued. “Let that money go to work for you over time. Then, be opportunistic. Everything is for sale all of the time, especially if it’s an investment property, and even if it’s a recreational property — that’s still an investment.”

So, if someone approaches you and is willing to give you a price that provides a solid return, consider capitalizing on it. Then, roll those proceeds into another opportunity.

Seek Out Land Bargains

Finding a land bargain is the exception, and not the norm. That shouldn’t stop you from seeking out quality opportunities, though. At times, it is possible to get great deals on land.

“There used to be a lot of land bargains, but I don’t see nearly as many as I did 10 years ago,” Mason said. “Before the advent of the internet, as active as it is, and with tools like onX, people are aggressively seeking private landowners. But a buyer’s agent is going to do the right things to represent them correctly.”

Therefore, with knowledge of your budget and land needs, a buyer’s agent can keep their eye open and find buyer-friendly opportunities.

Of course, it doesn’t hurt to search through listings yourself. If you stumble upon an opportunity, contact your buyer’s agent and notify them of your interest in that tract.

Find Properties with Conservation Easements

A proven way to increase your access to larger acreages is targeting lands with active conservation easements with a goal of preserving habitat and wildlife. These lands with perpetual easements come with restrictions, which tend to reduce the per-acre market value.

Easements don't have to be the scary term many believe it to be. With knowledgeable guidance from an expert Land Specialist, there can be some great opportunities on tracts that involve conservation easements.

“In my area, it’s quite common,” Graeb said. “A lot of recreational lands in my territory are in easements with the USDA or U.S. Fish and Wildlife Service. These might be grasslands or wetlands easements, for example. Most of these programs allow you to purchase land at what most people would consider to be significant discounts compared to land without easements. Oftentimes, these properties are raw. There are uplands, wetlands, and maybe trees on these.

“You might buy a property like that for $750-$1,200 per acre,” Graeb continued. “Whereas, if you bought land that’s pasture, and doesn’t have easements, you might pay $3,500 per acre. So, buy some of that easement ground, have a vision for it, and see that it’s a blank canvas.”

You can buy properties like that mentioned above, invest the time and energy, and sell them for more money. Put in the sweat equity, and it can yield a return as long as you understand the parameters and rules of the specific easement in place.

“They haven’t been developed in terms of trails, food plots, or hunting blinds,” Graeb said. “As for all the things that make a hunting property, they don’t have survey data, trail camera photos, big deer harvested on these, etc.”

Improve Land and Sell It

Investing time, energy, and sometimes, funds, can elevate property value. Just as adding landscaping to a home boosts home property value well beyond the money invested, the same tends to be true for money invested to improve land.

Improve Curb Appeal: Start with curb appeal. Make the property look better than when you bought it. Do that, and it boosts value instantly. “Make sure you improve the curb appeal,” Mason said. “From the road, as I enter the farm, is it gated? Does it have a nice, graveled entrance? Is there a good parking area and places to get off the road?

Build Internal Road Systems: Next, create or enhance internal road systems. “Access is critical,” Mason said. “When I get into the farm, is there a road system? Can I go in and show them on a UTV.”

Add Utilities: Paying to install utilities, or at least starting that process, instantly adds value. It even makes buyers more likely to consider the property to begin with.

Build Fencing and Structures: Fencing adds another layer of value. Even without livestock, a perimeter fence along the boundary is a good idea.

Buy a New Survey: Properties without recent surveys stand to benefit from a new one. For example, tracts without surveys, or those many decades old, might even be larger than expected. You could have more acres than previously thought.

Improve Soil Health: Some soil needs improvement. Improving soil health is an excellent way to make land more attractive to buyers utilizing solid amendment practices.

Plant Shrubs, Trees, etc.: Other aesthetics can be elevated as well. Examples include planting shrubs, trees, and other improvements.

Set Up a Turnkey Hunting Property

You can really enhance the property by planting food plots, creating great access points, and more. Then, begin documenting the harvest of big deer on these properties.

“You might turn around and re-sell land with some harvest history at higher pricing,” Graeb said. “This can be a strategy for someone with the willingness to put in some sweat equity.”

Understand that this takes significant effort and time to accomplish, though. Generally, this is something for those who are very passionate about land and wildlife management. Hunter-conservationists tend to be most successful implementing this tactic.

“You’re not going to document patterns of big deer in one year and then sell it,” Graeb said. “You might be talking about a four- to five-year window to change that property and start holding bigger deer on it. Because you have to prove that to a future buyer.”

“The properties that sell for the biggest premium are what I’d consider turnkey,” Mason agreed. “They have gated entrances, road systems, hunting blinds, food plots, and a proven record of big deer (whether trail camera photos or harvest photos).”

Sell Land the Right Way

When trying to get maximum value in your land sale, it’s crucial to sell it in the right way. Don’t rush the process. Be patient. Make good decisions.

“Some properties do very well at auction,” Sangimino said. “For these, that should be the primary way of selling it. You can get a great result.”

“An example of this is tillable acreage, which is in high demand in the Midwest,” Sangimino continued. “These tend to do really well at auction. Income-producing farms with tillable land tend to do really well at auction.”

Not all properties do well at auction, though. In fact, most are better suited as a traditional listing.

“Other properties, you don’t want to auction, because they tend to bring a lower retail price than giving it time on the open market,” Sangimino said.

“Residential properties, country homes, and recreational tracts tend to not do as well at auction,” Sangimino continued. “They do better with time on the market.”

Implement the 1031 Exchange

The 1031 Exchange is probably the best route for rolling funds from one farm sale into the purchase of another. This is how a lot of people grow their wealth via landholdings. They start small, make good decisions, sell for a profit, and then 1031 exchange it into something a little bigger.

“You’re not eliminating capital gains, as people often think,” Sangimino said. “Instead, you’re deferring capital gains, which allows you to have more bang for your buck on the next purchase. You now have 15%-30% more buying power than if you paid the capital gains [now rather than later]. That can significantly upsize the new property that you could buy.”

The tricky part of 1031 exchanges are the deadlines that follow the closing date of the property you sell. For example, you have 45 days to identify three properties of interest to roll the funds into. You have 180 days to buy one of those three.

“If you’re going to sell your property, and you want to do a 1031, put as much effort in as possible to identify an adequate replacement property during that time frame,” Sangimino said.

That said, Sangimino encourages people to not lower their standards. At times, things won’t align to make the 1031 exchange possible.

“If you have to forfeit the 1031, then you just forfeit it,” Sangimino said. “That’s better than to make a bad decision. You just pay the capital gains and pay the intermediary a fee for holding the money during that time frame.”

Whether buying land via traditional listings with Whitetail Properties, or real estate at auction with Ranch and Farm, the 1031 exchange is a viable option.

“You have to declare the 1031 exchange before closing for the property you’re selling,” Sangimino said. “Work with an intermediary who will handle the proceeds, as you have to be hands-off with the proceeds.”

Hold Land and Re-Sell It

Ultimately, the primary process of expanding land holdings over time involves buying and selling on repeat. Find a good investment to buy, hold it an appropriate amount of time, make it better and more attractive, and then sell it for a profit. Do that repeatedly, and in time, you just might work up from 20 to 200 acres.