Seus Land Exchange Inc.

Friday, May 30, 2008

The Omen: The day I decided to work in land real estate

This is a guest post by J.R. Smith, an agent at Southern Land Exchange
Contact: whitetiger30646@yahoo.com

When I was 25 I got my “Real Estate” license. I was single. From day one after I received notification that I had passed the exam, I dreamed about quitting my regular job, working for the man, for a regular dependable paycheck, and going out into the Real Estate World and seeking my fortune. The operative word is “dreamed.” I just didn’t have the nerve to quit and do it. After I lucked up and sold a few five acre tracts, and saved up a grand total of five hundred American dollars though, I became a person with a dangerous attitude at work. A common phrase in my vocabulary at work became “Hey, I don’t need this.”

About that time something called the “oil embargo” was going on. Gas prices took a healthy jump. One Friday my boss explained that in order to make ends meet at work there would not be any more taking home company vehicles. As I was driving the work truck home for the last time, I decided that was the last straw. I was not better off financially than I was a year ago. A combination of a case of high testosterone and local southern hostility (commonly referred to as “Redneckedness”) must have over taken me. I must have put the pedal to the metal as I screamed out “Hey, I don’t need this. Monday I am going to tell that guy to TAKE THIS JOB AND SHOVE IT.” I was thinking, “I’ll sell my way to financial freedom in no time.” The next thing I remember, a cop was pointing at me as he crossed the grass median and turned on his lights as he pulled into traffic behind me.

“Do you know how fast you were going back there?” I replied, “Aahh, no I’m sorry, my speedometer must be broken.” (I must have thought he had never heard that before). A few minutes later as he walked back up to my window and handed me the speeding ticket he replied “If I were you Mr. Smith I would travel in the right lane with the rest of the normal flow of traffic until I got that speedometer fixed. You were doing 89 in a 55 mile per hour zone.” Well, I took that speeding ticket for an “Omen.”

As I pulled back up onto the super slab and headed home, I started to remember I would have to fix the brakes on my old truck and how much it would be costing me for gas to drive it back and forth to work from now on.

While the ticket was an omen that I should probably keep my day job, (I've had over 38 years of experience in surveying, subdivision design, and development), I'm so glad I took the plunge into real estate.
I'm an avid outdoorsman and fisherman, particularly with light tackle in shallow water, so helping folks sell or buy recreational land brings two of my passions together. Plus, it slows me down a little.

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Wednesday, April 23, 2008

No Feeding Frenzy: AUCTION: MORGAN COUNTY APRIL 5, 2008


According to McGinnis Auction and Appraisal Service, an absolute auction is "an auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve."

The “absolute sale” in Morgan County on April 5 was indicative of current market conditions and illustrates who the buyers are today. The sale took place in the Morgan County Civic Center on a rainy Saturday morning that brought out everybody in the land business in the area and several from out of the area, approximately 120 people in all.

The auctioneer explained the terms of the sale with some new and confusing rules to snatch money from the bidders in combining tracts.

The parcels ranged in sizes of 32 acres to 179 acres in size:
  • 6 of the smaller tracts were 32 to 69 acres consuming most of the road frontage
  • 4 tracts were 130 acres to 179 acres being accessed by private drives with cross-over easements

The highest bidder could choose which and how many tracts to purchase.

3 bidders started the bidding at $2000 per acre, not a good sign, since this tract would have sold for between $5500 and $6000 per acre two years ago. A $4050 per acre bid prevailed and the high bidder took the entire 923 acres. All that anticipation and excitement about the “absolute auction” and it only lasted 3 minutes!

After the buyer’s premium, the high bidder ended up at $4455 per acre. The gentleman who purchased the property bought a tract from us just a few months ago at a fair price. There are a few buyers who want to warehouse money with a reasonable appreciation in land, but the auction bidder pool, at this time, is predominantly bottom feeders.

So where is the competition when the rest of the market believes that we haven’t seen the bottom? Waiting anxiously on the sidelines until they see evidence of consumer confidence rising and that is the time to call your auctioneer for an “absolute sale,” no reservations, no restrictions. When optimism is on the rise and the people are excited about the immediate future is when you sell recreational land by auction, that’s when you create a feeding frenzy of bidding fast, bidding last, and selling to the greater fool.

When would I do this? The spring of 2009 is the best I could say today.

Image from John Dixon and Associates

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Wednesday, April 2, 2008

Welcome to Southern Land Exchange

Through this blog, we hope to share wisdom and insight that our readers will find educational and beneficial in their quest to sell, purchase, manage, and enjoy recreational property. We want to use this as an outlet to share our passion for land while having a little fun with topics that interest us. If you have any ideas or post requests contact us, and we'll tell you what we know.

We love to talk about all things land. Whether you're an avid hunter or fisherman (like a lot of us) or love horses or farming, we are sure to share some common interests. Our specialty is selling land, but we also have alot of experience managing our own farms and recreational properties. We have a couple of registered foresters on staff as well as surveyors and farmers. We are excited about using this blog to share our stories, experiences, and expertise.

Full disclosure: Plexus Web Creations helps us manage this blog.




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