What I’ve learned about land sales

As I mentioned the other day, I attended the Land Think summit in Atlanta two weeks ago, where I joined an elite panel of speakers that presented valuable information to land owners, buyers and their brokers. We addressed all types of issues taking place in today’s land markets around the Southeast.

Leading up to this, I have talked with several land brokers in the Southeast about the market for timber and recreational property and their values. What I continue to hear is that the recreational buyers for these timber/recreational tracts no longer exist. According to these brokers, there is a large disparity between what sellers are asking and what these few buyers are willing to pay.

One broker recently told me that he had received offers on five properties and he was not able to complete a sale on any of them. These properties are still unsold, and — as basis economics will tell us — price declines are soon to follow.

This past Saturday, we had an opportunity to sell a very nice tract of timber and recreation land in Wilcox County, Alabama. This 623-acre parcel is primarily a timber tract with mature timber and some of the South’s finest whitetail hunting. On auction day, 17 registered bidders from Alabama and Florida attended to bid on one or more of the 19 parcels the property was divided. After an hour of bidding, the property sold to two buyers from Alabama and Florida for primarily recreational purposes. The property averaged $2,560 per acre and this auction indicated to me quality timber and recreational properties will continue to attract strong interest and good prices.

If you’re interested in seeing the presentations from the LandThink Summit in Atlanta, click here.

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~ by Craig King on October 11, 2010.

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