How NOT Working with an Accredited Land Consultant Hurts You

How NOT Working with an Accredited Land Consultant Hurts You
  • PublishedFebruary 7, 2023


As a buyer, you do not have to shell out money for a real estate agent. In other words, you do not pay for the agent (the seller does). However, you can lose money (maybe lots) by not working with one, especially one not experienced in agricultural land, farm, and ranch sales or 1031 Tax deferral exchanges. Picking the correct agent to assist you in a land transaction can be a critical investment.

 

Did you know that there is an elite number of specialized Texas agents that are trained, Accredited Land Consultants (ALC), and recognized as land experts? There are. But only a small number fall into this group with 103 accredited agents in Texas and 637 agents across the whole 50 states. Why is an ALC important and why should you care?

 

 

Unknown Factors Have Lasting Consequences

First off, what you do not know can hurt you. Ignorance is not bliss. There is more to buying land than just dirt and trees. Most people wrongly assume that utilities automatically come with every piece of land. Just because a “county road has water and electricity” does not mean your land will have it. Unfortunately, many people find this out after they’ve closed, discovering they do not have access to either Co-op water or a well. Not to mention that sometimes electricity can cost an additional several thousand or tens of thousands of dollars (or more) to get power to a tract. In essence, a county road does not inherently give you access—not by a long shot. So be aware and do not assume it is a given right that land has utilities.

 

You Can Lose Special Agricultural Exemptions

Second off, an ALC’s expertise provides you with information about essential land assets such as topography, soil types, Flood Plains, water features, and how these assets affect your use of the land. Plus, a land consultant will be knowledgeable about maintaining current tax exemptions such as Agriculture and Timber Exemptions, or etc. These are important to know, both before purchasing and after closing, because it can be the difference in costing or saving you thousands of dollars every year in taxes. If not maintained in accordance with guidelines or filed correctly, you may lose those critical exemptions.

 

 

Inexperience Can Adversely Affect Your Bottom Line

Thirdly, an Accredited Land Consultant provides years of experience and volume of sales experience in land. When you compare that to a more urban-selling agent, for instance a Dallas agent who specializes in city lots or urban and suburban homes, they most likely do not have much (if any) experience in agricultural and farmland sales. Dealing with large acreage tracts or recreational land requires a different skill set than it does for urban development. Regardless, it is recommended that you get an experienced land agent that knows exactly how to protect your land investment and future usage of that acreage.

 


 

Uneducated (Agent) Training Puts You At A Serious Disadvantage

So, what else sets an Accredited Land Consultant (ALC) apart? Candidates go through a rigorous amount of education. To be considered for the ALC program, a candidate must first meet the REALTOR® Land Institute (RLI) education and membership requirements, at a minimum. After that, an agent may apply for the ALC program if they have at least 25 separate land transactions or $5,000,000 in assisting buyers with land purchases within a 5-year time span. Only after meeting these standards, can they apply. The application process alone, is tedious and time-consuming, requiring above-and-beyond things like individualized story essays of land sales, referral letters, and written recommendations from clients. Once an agent is accepted, then there are hours upon hours of additional training, specifically in agricultural land and land sales, maintaining a land sales portfolio, passing a final exam, and more. Combine the pre-requisite of experience with the additional training and requirements to become accredited, you (the buyer or seller) will be in a better position to receive top-notch performance from a high-caliber land consultant. And as an overview, an Accredited Land Consultant (ALC) helps you with the below (and more):

· Potential Usage of property

· IRS Tax Code 1031 Exchange

· Utility Availability (Well, Water, Elect)

· Mineral Rights, Mineral Estate, or Production

· Recreational Land

· Tenancy – Written Lease or Oral Agreement

· Water Rights

· Undivided Interest

· Knowledge about future impacts (ie., to-be-installed neighboring solar or wind farms)

· Valuation of property

 

Wrapping up, an ALC is more than slapping a few letters at the end of a name. You get a trained and educated real estate agent who professionally and expertly assists you in land sales. Working with one means you’re partnering with the 5-star in land consulting—an asset in dealing with the nuances of buying or selling agriculture or recreational tracts, or farm and ranches. According to the National Association of REALTORS® (NAR), “Accredited Land Consultants (ALCs) are land professionals who are the most accomplished, most experienced, highest-performing land experts.” And not working with one can hurt you (and your wallet) in the end.

 

About the Contributor: Janet Martin owns and brokers, Janet Martin Realty, a multi-million-dollar real estate company in Sulphur Springs that works with clients nationwide. She is also a locally Accredited Land Consultant (ALC). Janet and her team are some of the top producers in Hopkins County to create a top-tier independent office. As the result of effective marketing strategies, Janet’s clients benefit from her results-driven investments in both cross-promoting properties online, in print, or through innovative and pro-active marketing. Janet’s office is located at 1325 South Broadway Street, Sulphur Springs across the street from Starbucks.

 

 



Written By
Chloe Kopal

Chloe Kopal was born and raised in Sulphur Springs, Texas. She attended Sulphur Springs High School for 4 years and graduated in 2021. She was also a line member for the Blue Blazes Drill Team for 3 years. Chloe is the Digital Content Creator for Front Porch News. Her love for our community shows through her work. She is very passionate about photography and has been ever since the first time she picked up a camera many years ago.