Article by Dakri Bernard, CEO of Rize Realty
Are you familiar with transitional land? This type of property is in the process of transitioning from one form of land use to another, and it has been around for quite a while. Although it might be perceived as a risky type of land, transitional land can actually be a gold mine. In fact, one of the most famous examples of a successful transitional land is Disney World, which started off as swamp land and was transformed into the happiest place on Earth!
If you’re new to land types, there are several different types of land real estate, such as agricultural/farmland, commercial land, ranch land, recreational land, residential land, and timberland. Each type requires different soil types and amenities, so it’s important to determine the best use for your land type.
However, selling transitional land requires in-depth knowledge about the state of the market and different land types. Unlike traditional real estate brokerage, where an agent lists an existing property with a known use and markets that property to the users for that type of property, selling transitional land is different. It requires accurately determining the market value and marketing the property according to its highest and best use, which is different from its current use, in order to increase the property’s value and profit.
The biggest risk of selling transitional land is thinking it will be exactly like selling other land types. This is why it’s crucial to work with a land expert (link Dakri) who can help you determine the best land use for your land type and get the best market price. The first thing you and your land expert will want to do is determine the best use for the land by asking questions about the soil types, amenities, and demand in the area.
The actual “transitioning” of the land depends on what your client wants. Some buyers want to buy the land that’s already been transitioned, while others want to invest in transitioning the land themselves. In both cases, it’s important to ensure there is a significant demand for that land type before investing a lot of money and time.
Many land sellers are still cautious about selling their land as transitional land, but with extensive research and working with a land professional, it can be extremely profitable. To learn more, or to find available properties (link website), don’t hesitate to give our office a call: (208) 932-4343!