The rural real estate industry is booming amid the COVID-19 pandemic that has decimated many industries across the country. Past precedents, such as a sluggish real estate winter season, seems to be not holding up, as land agents across the country report a significant increase in the number of people looking to acquire rural properties.
The spike in demand has created a shortage of real estate properties available for sale resulting in a “seller’s market”, where the market is now tipped in the seller’s favor. Land prices across the country have also skyrocketed, with many sellers holding out for the upward trend to continue.
The rural land market has been on the rise since 2019, with events of the past year accelerating the demand for rural land. Social unrest and migration to remote working due to the pandemic resulted in people fleeing to the rural areas to quarantine until the pandemic is brought under control. Historically low interests have also ensured that people can now access capital to put on land easily, further increasing land demand.
The disruption of social fabric by the pandemic has also resulted in people looking for new ways to bond with their families and friends. An article written in The Washington Post, for instance, showed that hunting activities across the countries had significantly increased. Fishing was also a good social distancing activity that people were now engaging in, and most of the fishing was happening in rural areas, as people continued to move from cities and urban areas. This has also pushed up the demand for land and contributed to the current spike in prices
Landowners looking to sell their land should know that they have the upper hand and are more likely to hold out for huge prices. The current shortage presents unique opportunities that sellers can optimize the low land inventory for maximum returns. Below are the three ways the current can be helpful to you>
- Price soar
The current low land inventory has resulted in bidding wars from potential customers, as buyers try to outcompete each other. The result is a fierce competition that is pushing prices higher with each passing day. Buyers are now willing to offer more than what sellers are asking, further driving up the prices and making sellers being able to potentially netting more from their properties when a transaction closes.
- Greater Return on Investment
Sellers no longer have to make concessions to have their properties taken out of their hands by buyers. The current low land inventory has given them an upper hand and they are in a more suitable negotiation position with their clients. The fierce bidding war of rural farms means that sellers do not have to make any concessions because buyers already accept the situation as it is and are aware that if they make demands, they will lose the property. It has also given sellers the ability to chose the buyer they want without worrying about concession, meaning that they now have the ability to make as much profit from the sale of the land as they possibly could.
- As The Seller, You Set the Terms
The terms and conditions of the purchase are now in the hands of the sellers. The stiff competition means that buyers are accepting what they are presented by the buyer. Therefore, as a seller, you now have the privilege to be as selective as you want on which offer you accept.
We know selling land can feel overwhelming. If you need an experienced local realtor to help you gain the upper hand, give us a call today.