What do you mean it’s not worth what I paid for it!
Buying or selling real estate in today’s market requires owner(s) or prospective owner(s) to understand more than just the comparative value of the investment they are about to transact. With the guarantee of real estate appreciation only a memory, the potential for financial miscalculation is now a very real possibility and must be understood as part of the equation. Establishing a sale price or deciding to purchase, based on what the neighboring property sold for may work for a tract house or condominium but could lead to a huge mistake when it comes to the sale or purchase of land, ranch and farm ground, waterfront or recreational properties.
The factors surrounding the purchase or sale of real estate especially land and recreational properties has a multitude of inherent value factors that require an ever growing range of expertise directly related to the property as well as the channels of marketing it may or may not have been exposed to.
The key to most every successful investment in real estate will be the comprehension of due diligence and the experts you employ to recognize the extent and range of investigation required to complete it.
The key to most every successful sale of real estate will be the comprehension of due diligence and the experts you employ to recognize the extent and range of
Investigation required to present it.
In both instances it will be your ability to clearly indentify the experts you employ and not an opinion you may have regarding value or what you need out of the property that will dictate a successful transaction. If the truth is that you “don’t have to sell” or “don’t want to sell” you may be better off not trying. This effort should you decide to go forward will likely result in your compromise of the real expert you need to represent you and potentially cost you more in the long run.
Over the next few months we will be presenting many of the factors involved in the purchase or sale of investment multi use recreational real estate. The goal will be to help you determine if the real estate professional you engage understands and can recognize the expertise you may need to make the best decisions possible in completing the transaction.
Topics will include:
Appraisal; Timber value; Ag value; Oil and Gas rights; Water rights; the effects and benefits of Conservation Easements; the use of Auction, 1031 tax deferred exchange, self directed IRA, GPS and the use of maps as well as the value of Multi Channel Marketing and Land Owner Services after the sale. We will introduce experts in each of these areas to assist you in making the right choices. As with most things we would like to start with the Human side of the equation, LOVE.
The Love Factor:
Never discount the fact that we are all human and in many areas of our lives we do things for love and not money. Purchase a diamond for your fiancé and pawn it as a result of an unfortunate break up and you will know that love has a price. The love factor when it involves your decision to purchase a piece of land or sell the property that has been enjoyed by your family for generations will have a reality check that must be separated from the love factor. It may, in today’s market come with a price and to not recognize and separate the love factor (value or price) can cause not only a serious financial error but one that could inadvertently cause months or possibly years of frustration and stress. When your trusted real estate advisor tells you the price for all the good times you had on the property may not be reflected in its market value, understand it comes from their professional opinion of the real estate and not the value you derived from its ownership.
Cabela’s Trophy Properties is a worldwide network of recreationally orientated Land Brokers with regional expertise in, Ranch and Farm, Timber, Waterfront, Auction and Land Owner Services. We are a proud supporter of the Realtors Land Institute. www.cabelastrophyproperties.com contact Derrick Volchoff, firstname.lastname@example.org