CJ Real Estate specializes in ranch, residential and commercial land sales. Whether you need to diversify assets quickly for top-dollar via auction or are prepared to list and wait for a buyer to come to you, the Cunningham-Johnson team provides comprehensive solutions and proven sales performance.

How to Sell Your Lake Home Faster, For More

Posted by CJ Real Estate Auctions on with 0 Comment

Owning a lake home is a dream come true for many. The serene views, recreational opportunities, and peaceful atmosphere make for a wonderful retreat or full-time residence. However, when the time comes to sell, many lake homeowners face unique challenges that the traditional real estate market may not address effectively. If you’re considering selling your lake home, an auction could be the most beneficial route to maximize value and achieve a quicker sale. Here’s why.

Challenges of Selling a Lake Home Traditionally

Selling a lake home using the traditional listing method often presents obstacles that can lead to extended market time and potentially lower offers. Some of the key challenges include:

  • Seasonality of Demand: Lake homes tend to attract buyers during certain times of the year, such as spring and summer. If your home is listed during the off-season, it may sit on the market longer than anticipated.
  • Limited Buyer Pool: Unlike traditional suburban homes, lakefront properties appeal to a more niche market. Finding the right buyer willing to pay the premium price for a waterfront location can take time.
  • Uncertain Market Conditions: The traditional listing method often results in prolonged negotiations, price reductions, and uncertainty about when—or if—your home will sell.
  • Carrying Costs: While your home sits on the market, you’re still responsible for maintenance, insurance, and property taxes, which can add up significantly over time.

 

Benefits of Selling Your Lake Home at Auction

An auction provides a powerful alternative to the traditional real estate market, especially for lakefront properties. Here are some key advantages:

  1. Competitive Bidding Maximizes Sale Price

One of the greatest benefits of selling your lake home at auction is the competitive bidding environment. Rather than negotiating with one buyer at a time, an auction creates urgency and encourages buyers to act decisively. As a result, the highest market value is achieved, often exceeding expectations.

  1. Faster Sale and Closing

Unlike traditional listings that may linger on the market for months, auctions have a predetermined date, creating a sense of urgency among buyers. This eliminates the waiting game and leads to a quicker sale and closing, allowing you to move forward with your next steps sooner rather than later.

  1. No Price Ceiling

In a traditional listing, setting a price too high can deter buyers, while pricing too low may leave money on the table. An auction eliminates this dilemma by letting the market determine the home’s true value through competitive bidding.

  1. Targeted Marketing to the Right Buyers

Auction companies use strategic marketing efforts to attract serious buyers who are actively looking for premium lakefront properties. These marketing campaigns focus on high-net-worth individuals and investors who understand the value of a lakefront home, increasing the likelihood of securing the best price.

  1. Certainty and Transparency

In an auction, all terms and conditions are set upfront, ensuring a smooth transaction without last-minute negotiations or contingencies. Buyers know they need to be financially prepared to purchase, reducing the risk of deals falling through.

  1. Eliminates Hassle and Ongoing Costs

Since auctions have a set timeline, sellers can avoid the ongoing costs of keeping their home on the market. The longer a property sits unsold, the more carrying costs accumulate. An auction provides a clear exit strategy, allowing sellers to cut unnecessary expenses.

 

Auction Success vs. Traditional Sales

Recent data comparing lake home sales through auctions versus traditional listings reveal significant advantages for auction sellers. Lake homes sold via auction not only result in faster transactions but also command higher prices per square foot.  Data from the NAR revealed:

Lake homes sell 6X faster via auction. The average lake home closed in 68 days when sold at auction compared to lake homes sold via traditional listing method which closed in an average 371 days.

Lake homes sell more via auction. The cost-per-square-foot sales price for auctioned properties averaged $350, compared to $275 for traditionally listed lake homes.

 

Is an Auction Right for You?

If you’re looking for a way to sell your lake home efficiently while maximizing value, an auction is worth considering. It works exceptionally well for:

  • Luxury or Unique Properties: If your home has features that set it apart, an auction highlights its exclusivity and attracts the right buyers.
  • Sellers Who Want a Faster Sale: If you prefer not to wait months for a buyer to come along, an auction guarantees a defined sale date.
  • Sellers Who Want a Transparent Process: Auctions eliminate prolonged negotiations, lowball offers, and uncertain outcomes.

Wrapping Up

Selling a lake home can be a complex process, but an auction provides a streamlined, efficient, and profitable way to achieve a successful sale. With a competitive bidding environment, targeted marketing, and a set closing date, auctions allow sellers to maximize their property’s value while avoiding the pitfalls of the traditional listing process. If you’re looking for a smart, strategic way to sell your lake home, an auction could be your best choice.

If you need guidance through the process, partner with a trusted auction company like CJ Real Estate auction. Eric and Ronn will help you make data-driven decisions and secure the best outcome for your property.

Setting an Auction Reserve Price That Drives Top Dollar

Posted by CJ Real Estate Auctions on with 0 Comment

Selling land at auction is a highly effective way to ensure you get a fair market value – or better. Auction creates the market for rural real estate and offers a transparent and efficient process to connect you to potential buyers. However, an important part of preparing for this process is setting your reserve price—the minimum amount you’re willing to accept for your land.

The reserve price is a critical benchmark that protects your financial interests while also ensuring your real property is attractive to bidders. Setting this price requires careful planning and consideration. Read on to learn how to determine the right reserve price for your land.

What is a Reserve Price?

Before diving into how to set it, it’s important to fully understand what a reserve price is. The reserve price is the minimum bid that the seller is willing to accept for their property at auction. If bidding doesn’t reach the reserve, the land will not be sold, giving the seller control over the ultimate outcome of the sale.

Unlike an ‘absolute’ or ‘no reserve’ where the property sells to the highest bidder regardless of price, having a reserve price in place ensures that your land won’t sell below your minimum price.

Why Setting the Right Reserve Price Matters

Setting the right reserve price for your land is a balancing act. An auction reserve that’s too high is likely to scare off potential buyers, dampen bidding activity and possibly result in no sale. A high reserve often creates the perception that the property is overpriced or that the seller is unlikely to accept any bid, which discourages people from participating in the auction. Setting the reserve price too low might leave money on the table, failing to maximize the value of your land. It’s essential to find the sweet spot that ensures competitive bidding while protecting your financial goals.

By setting the reserve price strategically, you create an atmosphere of excitement and opportunity, attract the largest potential buyer pool, entice people to engage in bidding wars and drive up your final sale price. Collaborating with experienced auctioneers helps you strike the balance between attracting interest and optimizing the value of your land. They will help you assess market conditions, analyze comparable sales data, and guide you in determining a reserve price that aligns with your goals and resonates with potential buyers’ expectations and capacities. With the right reserve price, you enhance the chances of getting top dollar.

Steps to Set a Reserve Price

First, understand your land’s market value.  The starting point for setting your reserve price is knowing the fair market value of your land. This depends on several factors, including location, condition, acreage, soil quality, zoning, water rights, accessibility, potential uses and neighboring properties.

Experienced land auctioneers understand local markets and can offer insight into how your property fits into buyer demand. They’ll assess your land’s unique qualities and analyze recent sales of similar properties to understand what buyers are currently paying for land with comparable features.

Take these steps to become comfortable setting your reserve price:

  1. Consider your financial goals. Think about what you need to achieve financially from the sale. Ask yourself questions such as: What is the lowest price I’m comfortable accepting? Does this sale have specific financial obligations tied to it (e.g., paying off a loan, reinvestment goals)? Establishing these benchmarks can help guide your reserve price decision.
  2. Evaluate unique selling points. Does your property have features that will drive up demand? Examples might include prime soil for farming, abundant water access, or existing fencing ideal for cattle grazing. Highlighting these features during the auction can impact bidder interest, potentially influencing your reserve price.
  3. Assess current market conditions. The agricultural and real estate markets can fluctuate based on broader economic and environmental factors. For example: Are land values in your region trending upward or downward? Is there high demand for farmland or development land in the area? Staying informed about supply and demand dynamics can help you gauge whether to set a more aggressive or conservative reserve price.
  4. Factor in costs and liabilities. Keep in mind the costs associated with selling your land, as this might influence your reserve price. These costs can include auctioneer fees, legal fees, title searches, and paying off any outstanding property tax or liens. If the land has maintenance requirements (e.g., erosion control, invasive plant removal), you may need to incorporate these factors into your reserve.
  5. Be Open to expert advice. While you might have an idea of what you want from the sale, it’s always wise to listen to professionals. Auctioneers, land agents, and appraisers are well-versed in local market trends and bidder behavior. They can help refine your expectations, ensuring you set a reserve price that strikes the right balance.

Common Mistakes to Avoid When Setting a Reserve Price

  1. Setting the reserve too high. An overly ambitious reserve price might prevent bidders from entering the auction, leaving you with no offers at all. Remember, the goal is to generate competitive bidding that pushes the final sale price upward.
  2. Forgetting to factor in market trends. Failing to account for current market demand (or saturation) may leave your reserve price out of sync with potential buyers’ expectations and capacities.
  3. Not Revealing the reserve strategically. While it’s common for the reserve price to remain private, some sellers and auctioneers choose to hint at its range to encourage bidding activity. Discuss with your auctioneer the best strategy for your specific situation.

Key Takeaways

Setting the reserve price for your land is a crucial step that requires careful planning and collaboration with experts. By understanding your land’s value, staying informed on market conditions, and aligning the reserve with your financial goals, you can maximize the chances of a successful sale.

If you need guidance through the process, partner with a trusted auction company like CJ Real Estate auction. Eric and Ronn will help you make data-driven decisions and secure the best outcome for your property.

5 Common Real Estate Auction Bidding Mistakes to Avoid

Posted by CJ Real Estate Auctions on with 0 Comment

5 Common Real Estate Auction Bidding Mistakes to Avoid

Bidding on real estate, whether a ranch, farmland, or an investment property, can be both exciting and challenging. However, this process often comes with pitfalls that can cost you financially and emotionally if you’re not prepared. Whether you’re a first-time buyer or an experienced real estate investor, avoiding these common mistakes can make all the difference in securing a winning bid and ensuring a successful investment.

1. Failing to Research the Property Thoroughly

One of the most significant mistakes buyers make is placing bids without doing proper research. Each property comes with its unique details and challenges, such as zoning regulations, water access, soil quality, and existing structures. For farmland and ranch buyers, these factors can significantly affect the property’s value and long-term viability.

How to Avoid This Mistake:

  • Visit the property multiple times.
  • Get a professional inspection.
  • Review property records, including ownership history and any liens.
  • Check for any environmental concerns.

By knowing exactly what you’re bidding on, you’ll be more confident in making an informed decision.

2. Setting Unrealistic Expectations

Many buyers enter the bidding phase with unrealistic goals—either expecting to snag the property at an impossibly low price or assuming it will meet all their ideal criteria without compromise. This mindset can lead to frustration and missed opportunities.

How to Avoid This Mistake:

  • Research comparable sales in the area to get a realistic sense of market values.
  • Define your non-negotiables but be prepared to compromise on secondary wants.
  • Set a clear budget and stick to it.
  • While aiming high is great, balancing aspirations with reality will help you stay grounded.

3. Overlooking the Cost of Ownership

Placing a winning bid is just the start of your financial commitment. Many buyers focus solely on securing the property without considering the ongoing costs of ownership, such as maintenance, property taxes, insurance, and operational expenses for farms or ranches.

How to Avoid This Mistake:

  • List all potential expenses, such as upkeep for fences, barns, irrigation systems, and equipment if it’s farmland.
  • Factor in unexpected costs, such as repairs or market fluctuations in crop prices for agricultural property.
  • Discuss your financial capacity with a realtor or financial advisor before making a bid.
  • By understanding the full scope of ownership costs, you can avoid financial surprises further down the road.

4. Getting Emotionally Attached

It’s easy to fall in love with a property, especially a beautiful ranch or a piece of farmland with breathtaking views. However, letting your emotions guide your bidding decisions can lead to overpaying or making unwise compromises.

How to Avoid This Mistake:

  • Approach the bidding process as a business transaction.
  • Set a strict maximum bid amount and stick to it, no matter how much you want the property.
  • Work with a trusted real estate agent who can help keep emotions in check during negotiations.
  • Remember, there will always be other opportunities, and it’s better to walk away than to regret an emotional, overinflated purchase.

5. Failing to Prepare Financing in Advance

Walking into a bidding situation without your finances in order can lead to delays and even cause you to lose the property to a more prepared buyer. Sellers prioritize buyers who have their financing ready to ensure a quick, smooth transaction.

How to Avoid This Mistake:

  • Get pre-approved by a lender to understand your borrowing capacity.
  • Have proof of funds ready, particularly if you’re making a cash offer.
  • Understand the terms of your financing, including interest rates and repayment timelines.
  • Being financially prepared signals to the seller that you’re serious and can speed up the closing process.

Closing Thought

Investing in real estate, especially farmland, ranches, or other large properties, is a rewarding but complex process. By avoiding these five common mistakes, you can make smarter, more informed decisions while bidding on the property of your dreams. Whether you’re a rancher expanding your operations, a real estate investor looking for the next opportunity, or a farmer buying your first field, preparation and mindfulness are key.

If you’re ready to take the next step, work with a trusted real estate agent or consultant who specializes in the type of properties you’re interested in. With the right guidance, you’ll be well-positioned to bid strategically and secure a winning deal.

Looking to Sell Your Land? CJ Real Estate is Here to Assist

At CJ Real Estate, we specialize in selling ranch, residential, and commercial land. Whether you’re looking to sell quickly through a high-value auction or prefer to list and wait for the perfect buyer, our experienced team delivers tailored solutions and a track record of success. When you need results, trust the proven expertise of CJ Real Estate.

2025 Land Value Expectations

Posted by CJ Real Estate Auctions on with 0 Comment

2025 Land Value Expectations: What Ranchers, Landowners, and Investors Need to Know

As we head into the new year Landowners, ranchers, farmers, and investors alike are focused on the latest value projections. The good news? Stability continues to define the market, providing confidence for stakeholders navigating this competitive space.

Land values and buyer interest remained robust in 2024, despite challenges posed by lower commodity prices and a slower economy. Experts predict this strength will not only be maintained but could see modest growth as broader economic conditions improve due to lower interest rates, lack of supply ad excellent incomes over the past three years.

Market Insights from Industry Experts

“It’s always tough to predict land sales on a given day,” says Ronn Cunningham of CJ Auctions. “Our 2024 sales consistently exceeded seller expectations. Other brokers reported inconsistent results. I expect to see land prices stabilize with modest improvement as the economy continues to improve post-election.”

This perspective aligns with broader market trends. Land pricing volatility from 2021-2023 calmed down in 2024 with high-quality agricultural land commanding consistently strong values. Average price-pre-acre for raw land or lower quality ag land has fallen slightly. This moderation highlights the market’s resilience, particularly in regions like Oklahoma and Kansas, where demand remains high.

Declining Supply Meets Strong Buyer Demand

One notable trend in recent years has been a reduction in the overall number of properties for sale. Over the past three years, listings have dropped by 22%. Despite the tighter supply, demand continues to thrive, driven by both cattle and crop producers as well as institutional investors increasingly recognizing the value of agricultural land.

High-quality family farms and ranches have emerged as enduring favorites in the buyer landscape. These properties are not only maintaining their value but, in some cases, are poised to see modest increases as competition remains healthy.

Standout Regional Value Growth

Regional markets tell a particularly compelling story. Oklahoma and Kansas pastureland values shone bright in 2024, and that momentum is expected to carry through 2025. Nationally, pastureland values grew by 5.2% on average last year, but Oklahoma and Kansas outpaced the trend, achieving an impressive 9% average annual value growth across the south-central region.

Additionally, cash rental rates further boosted landowner returns. Oklahoma led the nation with a remarkable 10% increase in cropland cash rental rates in 2024, further cementing its position as a leader in the agricultural land market.

Key Takeaways for 2025

For those involved in or considering entering the ag land market, here are the main points to know:

  • Expect Less Volatility: Despite economic fluctuations, the agricultural land market remains stable, with modest improvements expected into 2025.
  • High-Quality Land Holds Strong: Properties with strong agricultural value, such as family farms and ranches, are maintaining high demand and value.
  • Regional Bright Spots: Oklahoma and Kansas continue to lead the way in terms of growth and strong returns in both land value and cash rental rates.
  • Supply Challenges Persist: With fewer listings on the market, opportunities for land acquisition are becoming increasingly competitive.

Looking Ahead

The 2025 market outlook offers optimism for ranchers, landowners, and investors. Stability coupled with continued regional growth suggests strong opportunities for those looking to invest in high-quality properties or maximize value from existing holdings.

Whether you’re actively participating in the market or simply keeping an eye on trends, staying informed has never been more critical. By understanding the forces shaping the land market, you’ll be better positioned to make savvy decisions in the year ahead.

Thinking of Selling Your Land?  CJ Real Estate Can Help

We are real estate experts specializing in ranch, residential and commercial land sales. Whether you need to diversify assets quickly for top-dollar via auction or are prepared to list and wait for a buyer to come to you, the CJ Real Estate team provides comprehensive solutions and proven sales performance. When results matter, choose CJ Real Estate.

Ranch real estate auction

Step-By-Step Real Estate Auction Guide

Posted by CJ Real Estate Auctions on with 0 Comment

A Step-By-Step Guide to the Real Estate Auction Process

Navigating the real estate market can be a complex endeavor, but choosing to sell your property through an auction can streamline the process and potentially yield excellent results. Auctions offer an efficient, transparent way to sell real estate, ensuring your property is presented to a competitive pool of potential buyers.

Real estate auctions work because they create urgency. An auction date and time motivates potential buyers to act. The process is truly hands-off for sellers. And, sellers to dictate when, where and how the sale will happen.

“Once they (CJ Auctions) came in, it all just happened so quickly and so professionally. We were just kind of left with our mouth open because we didn’t expect it to go so smoothly and so quickly. And they took care of everything. All I had to do was show up at closing. I will be forever grateful for what they did for our family.”

 – Kary Warren, Lamb Ranch Trustee.

Property owners benefit from selling real estate at auction because they can minimize carrying costs, eliminate risks associated with pre-sale inspections and know when their property will sell. Additionally, there is no need for extensive repairs or upgrades because property offered at auction is typically sold ‘as is, where is’ meaning that bidders are offering to buy the property in the condition it is in on sale day. There are no sale contingencies and no negotiating.

Competition assures that owners are getting the best price for real estate at auction. At auction you get competing offers all at once. Each bid is simply an offer to purchase. The sales price is determined by competing bids that go up, not down.

Here’s a comprehensive guide to understanding the auction process from start to finish.

Discovery – Initial Consultation

Your auction journey begins with an on-site visit to learn about your property, the local real estate market and most importantly, your goals and objectives. This meeting serves as a foundation for the entire process:

  • Discuss your goals and which sales method – auction or listing – is the best fit for what you want to accomplish.
  • Discover what’s unique about your property, gain an overall understanding of your real estate asset and assess your property’s potential value.
  • Outline the auction sales process including deliverables, timeline and post-sale activity.
  • Address any remaining questions you or your family may have about the process, risks and benefits thoroughly with your real estate team.

Seller Responsibilities

Property owners selling via auction have similar duties to those in any real estate transaction.

  • Affirm property details such as shared ownership, legal descriptions, right of ways, acreage, etc.
  • Disclose financial details about existing mortgages, liens, etc.
  • Disclosure of any known hazards or defects.
  • Make the property available for pre-sale work, inspections or open houses during the marketing period. A key difference with auction is that inspections/open houses are typically limited to 3 or less and scheduled ahead of time – no last-minute showings.

Auctioneer Responsibilities

  • Keep you advised and informed with responsive communication throughout the process.
  • Set the auction date, time and location.
  • Package your property for maximum pricing potential through parceling.
  • Determine if a land survey is necessary and, if so, manage the survey process.
  • Organize all relevant property documentation, disclosures and other legal paperwork.
  • Prepare marketing plan and manage marketing process.
  • Organize and manage your real estate auction and sale process.
  • Organize and manage real estate closing.

Marketing

A strategic marketing plan is crucial for drawing in potential buyers. The tactics employed to market your property typically include:

  • Professional photography and videography showcasing your property through compelling visuals.
  • Custom webpage illustrating your property.
  • Online listing placements on real estate websites such as Zillow & Realtor.com.
  • Social media campaigns that engage audiences and generate interest.
  • Email marketing to targeted buyers, investors, brokers and related professionals.
  • Print advertising in local newspapers and select industry publications.
  • On-site signs and off-site directional signs to inform and attract local buyers.

Inspections and Open Houses

Inspections and/or open houses are a pivotal part of the auction process, offering potential buyers the chance to view the property firsthand. A key benefit of selling via auction is that these are typically limited to 3 or fewer and they are scheduled as part of the marketing plan so that you can plan and never have to hassle with a last-minute call to show your property.

  • Inspections and/or open house events are scheduled on fixed days and times and promoted as part of your marketing plan. Typically, there are 1 or 2 events prior to sale day and 1 event on sale day.
  • A representative from your real estate auction will be present to answer questions and offer details about your property during a set time period. They’ll collect feedback from attendees to gauge interest and address any potential issues that may impact your sale.

Auction Day

The entire process comes together on sale day.

  • Your real estate auction team will set up the property for sale posting additional sale day signage directing prospective bidders to the auction.
  • Prospective buyers will be able to arrive at least one-hour prior to auction time to inspect the property, register to bid, and ask any questions about the property or auction process.
  • At auction time, the auctioneer will make pre-auction announcements reading the sale terms, conditions, and disclosures into the record. Then your auctioneer will ask the audience if there are any questions for the record.
  • Once all questions have been answered, the auctioneer opens the competition with an initial starting bid.
  • Potential buyers make successive bids, each higher than the previous one. It’s a fast and exciting pace. Auctioneers typically work with a team consisting of the auctioneer, ringmen and an auction manager.
  • Your auctioneer will generate maximum value for the property by expediting competitive bidding while ensuring a transparent and fair process for all bidders.
  • The bidding process continues until a high bidder is declared.
  • If there are multiple property/parcels, the successful high bidder wins the right to choose a property/parcel or properties/parcels from a grouping of similar or like-kind properties. After the high bidder’s selection, the property/parcels they chose are deleted from the group and the bidding commences for any remaining property/parcels.
  • The bidding process continues until all properties/parcels have been sold.

Post-Auction

Immediately following the auction, high bidders will meet with the auction manager to complete the sale.

  • High bidders will sign the purchase agreement and pay a non-refundable deposit.
  • The auction manager will review the closing process and answer any buyer questions.
  • The auction manager will then expedite the closing process. Settlement typically occurs within 30 to 45 days of seller acceptance.

Conclusion

Selling your property at auction can be a powerful method for achieving a successful and timely sale. Understanding each step ensures you are well-prepared and can collaborate effectively with your auctioneer to maximize the benefits of this sales approach.

If you have questions or need further assistance about selling your property at auction, don’t hesitate to reach out. We’re here to guide you through the auction process and help you achieve the best possible outcome.

Stay tuned for our next post, where we’ll provide tips on preparing your property for auction to ensure it looks its best and captivates the right buyers.

Home Prep for Maximum Sale Price

Posted by CJ Real Estate Auctions on with 0 Comment

Looking to maximize your home’s sale value? Avoid costly upgrades and focus on simple, effective steps to attract buyers. Declutter, depersonalize, deep clean, and boost curb appeal effortlessly.

Most of us realize that your home should be as inviting and welcome potential buyers by making them feel comfortable.

“One of the most common mistakes that home sellers make is overlooking the simple and inexpensive steps in favor of costly upgrades” says agent Tev Brackin adding, “simply decluttering, depersonalizing, deep cleaning and curb appeal boosting lawncare will do more for resale value than just about anything you can do.”

Use this checklist to knock out the basic tasks to maximize your home’s value:

  1. Declutter every room in your house, the garage, the yard and any storage buildings.
  2. Depersonalize your home. Remove your personality so that potential buyers can visualize how their own personality will look in your house
  3. Deep clean. Think about hiring a pro – your realtor should have affordable options. Not only will they make your home sparkle, they’ll also often notice things that you may overlook.
  4. Amplify your curb appeal. Small and economical upgrades like a few cheerful flowerpots, fresh paint around the doorway, and trimming overgrown shrubs will make a big difference. Realtor Kali Blakley advises her clients to “Take a step back and add some color with potted plants – and you can take them with you after you sell.”

Of course, there are a few tasks that you may not have thought about that are absolutely worth your time:

  1. Wow buyers with inviting pictures that compel them to take a deeper look. Most buyers begin their search online. Be sure to declutter, depersonalize, deep clean and brighten your home before taking your online listing photos. Consider hiring a professional real estate photographer to maximize your appeal.
  2. Avoid surprises by conducting your own pre-listing inspection. A pre-listing inspection provides sellers with upfront information about the condition of their property, which gives them more control over repairs and potentially strengthens their negotiating position.
  3. Adjust the thermostat to make certain that your home is comfortable for potential buyers when showing the home.
  4. Make your home smell free. Taking out the garbage and recycling is obvious but removing candles and room fresheners is important too. Any smell can spoil a buyer’s opinion of your property. “Some sellers are shocked when I tell them a buyer thought that the candle scent was covering up a musky smell in the home.” Recalled agent Shelby Enyart.
  5. Avoid signs of your pets in the home. While we love our pets, dander, excess fur and messes in the yard can turn-off potential buyers.

The to-do list or home sellers may seem never ending. Use this list to help your home make a powerful impression, entice buyers, and compel maximum offers early in the process.

Invest in Hunting Land Like a Pro

Posted by CJ Real Estate Auctions on with 0 Comment

Purchasing recreational land for hunting can be an excellent investment, offering both a retreat from urban life and a potential source of income. However, to make the most of this investment and avoid financial pitfalls, there are several crucial factors hunters should consider before making a purchase. Here’s a guide to help you navigate the process and ensure your investment is sound.

Understand Your Objectives

Define Your Purpose: Are you buying the land primarily for hunting, or are there other recreational activities you’re interested in, such as fishing, hiking, or camping? Clarifying your primary objectives will guide your decision-making process and help you prioritize the features you need in the land.

Investment Goals: Consider whether you view this purchase purely for personal use or as a financial investment. If it’s the latter, think about the potential for future appreciation, leasing opportunities, and other revenue streams.

Evaluate the Land’s Hunting Potential

Wildlife Habitat: Assess the quality and diversity of the habitat. Look for areas with ample food sources, water, and cover. Diverse habitats that support various species will enhance your hunting experience and the land’s value.

Game Species: Identify the types of game present on the land. Research local wildlife populations and hunting regulations to ensure the species you’re interested in are abundant and legally huntable.

Property Size and Layout: Larger properties generally support more wildlife and provide a better hunting experience. However, the layout is equally important. Look for natural funnels, water sources, and areas that offer good vantage points for hunting.

Identify Potential Off-Season Revenue-Generating Opportunities

Owning hunting land can offer several passive income-producing opportunities beyond hunting that don’t interfere with habitat management or hunting activity and may even help secure your land with year-round activity. For some this is a very attractive way to pursue a passion for the outdoors while offsetting costs associated with owning and maintaining large plots of land.

Conservation Programs: Enroll in government conservation programs that provide financial incentives for preserving wildlife habitats, wetlands, or other natural resources.

Agricultural Leasing: Lease portions of the land to local farmers for growing crops or grazing livestock. This can provide a steady income stream while keeping the land productive.

Timber Sales: If the land has a substantial volume of mature trees, they can be harvested and sold. Sustainable forestry practices can provide ongoing income while maintaining the health of the forest.

Fishing Leases: If the property includes ponds, lakes, or streams, consider leasing access to fishermen. Stocking the water bodies with fish can enhance this offering.

Short-Term Rentals: There are a host of apps ready to help you generate revenue by opening your land to visitors looking to park their RV, pitch a tent, treat themselves to a glamping experience, or have a family vacation in a cozy cabin. Short-term rentals may require a bit more effort but most apps make it easy to control when and how people use your land.

Solar or Wind Energy: If the location is suitable, lease parts of the land for solar panels or wind turbines. Renewable energy projects can provide long-term, passive income.

Legal and Zoning Considerations

Zoning Laws: Verify the zoning regulations for the property. Some areas may have restrictions on hunting or other recreational activities.

Access Rights: Ensure there is legal access to the property. If the land is landlocked, you may need to negotiate easements with neighboring property owners, which can be costly and complicated.

Conservation Easements: Check if the property is subject to any conservation easements. Are there any protected species or wetlands on the property? Familiarize yourself with any regulations or restrictions that may impact your ability to develop the land. While these can be beneficial in preserving the land, they may also restrict certain activities, including hunting and development.

Financial Considerations

Budget and Financing: Determine your budget, including not just the purchase price but also ongoing costs such as property taxes, maintenance, and improvements. Explore financing options and ensure you can comfortably meet the financial obligations.

Market Trends: Research current market trends in the area. Land values can fluctuate based on various factors, including economic conditions and changes in local regulations.

Income Potential: Consider potential income streams from the land, such as leasing it to other hunters, offering guided hunts, or timber sales. These can help offset the costs of ownership and even provide a profit.

Land Improvements and Management

Necessary Improvements: Assess what improvements may be needed to maximize the land’s hunting potential. This could include building access roads, creating food plots, or installing blinds and stands.

Land Management: Effective land management practices can enhance wildlife habitat and increase the land’s value. Consider hiring a professional land manager or wildlife biologist to develop and implement a management plan.

Environmental, Physical, & Infrastructure Factors

Water Sources: Presence of water bodies like ponds, streams, or lakes can significantly enhance the property’s attractiveness to wildlife and its overall value.

Soil Quality: Good soil quality is essential for maintaining healthy food plots and supporting diverse plant life. Conduct a soil test to understand its composition and fertility.

Topography and Accessibility: Consider the topography of the land. Steeper terrain can be challenging to navigate but may offer excellent vantage points for hunting. Ensure the property is accessible year-round, especially if it’s in a remote area.

Utilities and Infrastructure: When purchasing hunting land, utilities and infrastructure play a crucial role in ensuring the property meets your needs and can support your intended activities. This includes: Water, electric, gas, waste disposal, roads, communications, buildings and fencing. You’ll need to access what you need, what exists, and what improvements will need to be made for your intended uses. One often-overlooked resource is access to emergency services.

Consult Professionals

Real Estate Agent: Work with a real estate agent who specializes in recreational land. They can provide valuable insights and help you find properties that meet your criteria.

Legal Advisor: Consult with a legal advisor to ensure all contracts and agreements are in order and to understand the implications of any legal restrictions on the land.

Financial Advisor: A financial advisor can help you understand the long-term financial implications of your purchase and how it fits into your overall investment strategy.

Conclusion

Recreational land can be a fulfilling and worthwhile investment that rewards you and your family for generations. Purchasing recreational land for hunting is a significant investment that requires careful consideration and planning. By understanding your objectives, evaluating the land’s potential, considering legal and financial factors, and seeking professional advice, you can make a well-informed decision that maximizes your investment and provides years of enjoyment. Take the time to thoroughly research and evaluate each aspect of your potential purchase to safeguard against financial mistakes and ensure a successful investment.

Most Profitable Land Improvements

Posted by CJ Real Estate Auctions on with 0 Comment

Investing in land improvements can significantly enhance the value of a property, but it’s crucial for landowners to focus on projects that promise a positive return on investment (ROI). Whether the goal is to sell the land quickly or maximize its resale value, certain improvements are more likely to appeal to buyers and yield substantial returns. In some cases, however, selling the land as-is may be the most pragmatic option. This article explores the most effective land improvements that pay off at resale and offers guidance on how to make informed investment decisions.

1. Clearing and Grading

One of the first steps to enhancing the value of a piece of land is clearing and grading it. This involves removing trees, rocks, and debris, and leveling the ground to make it more usable. A clean, well-maintained parcel is more attractive to buyers as it provides a blank canvas for development. While the cost of clearing and grading can vary widely depending on the size and condition of the land, it typically offers a good ROI by making the property more accessible and visually appealing.

2. Utility Installation

Installing essential utilities like water, electricity, and sewage systems can significantly boost the value of a property. Buyers are often deterred by the lack of basic infrastructure, so ensuring that these utilities are readily available makes the land more attractive. The cost of utility installation depends on the proximity of existing utility lines and the terrain of the land. While the upfront cost can be substantial, the added convenience and development potential usually translate to a higher selling price.

3. Access Roads and Driveways

Improving access to the land by building roads or driveways can make a significant difference in its marketability. Properties that are difficult to access are less appealing to buyers, particularly those looking to build homes or businesses. Investing in well-constructed access roads not only improves the functionality of the land but also enhances its aesthetic appeal. This improvement often yields a high ROI by making the property more practical and accessible.

4. Landscaping and Aesthetic Enhancements

Landscaping can greatly enhance the visual appeal of a property. Simple improvements like planting trees, shrubs, and grass, or creating gardens and walking paths, can transform a barren piece of land into a picturesque and inviting space. Landscaping not only makes the land more attractive but also suggests to potential buyers that the property has been well-maintained. While the cost of landscaping can vary, even modest investments can result in significant returns by making the property stand out in the market.

5. Fencing and Boundaries

Establishing clear boundaries with fencing can improve the security and privacy of a property, making it more appealing to buyers. Fences can also be used to segment the land for different uses, such as residential, agricultural, or recreational purposes. High-quality fencing materials and professional installation can be costly, but this improvement often provides a good ROI by enhancing the property’s functionality and security.

6. Environmental Improvements

Investing in environmental improvements, such as creating ponds, wetlands, or natural habitats, can increase the land’s appeal, especially for buyers interested in recreational or conservation purposes. These improvements can also enhance the property’s ecological value and provide tax benefits or incentives in some regions. The cost and ROI of environmental improvements vary, but they can be particularly attractive to niche markets.

7. Zoning and Permits

Securing the appropriate zoning and permits for potential development can significantly increase a property’s value. Buyers are more likely to purchase land that is already zoned for their intended use, as it reduces the time, effort, and risk associated with obtaining these approvals themselves. While navigating zoning laws and acquiring permits can be complex and sometimes costly, the resultant increase in marketability and value often justifies the investment.

When to Sell As-Is

Despite the potential benefits of land improvements, there are situations where selling the land as-is may be the best option. If the cost of improvements outweighs the potential increase in value, or if the land is located in an area with low demand, investing in enhancements might not be justified. Additionally, if the landowner needs to sell quickly due to financial pressures or other personal reasons, it might be more practical to sell the land without making any improvements.

Factors to Consider Before Investing in Improvements

Before deciding on any land improvements, landowners should consider the following factors to ensure they are making informed decisions:

  1. Market Analysis: Conduct a thorough market analysis to understand the demand and potential buyers for the property. This will help determine which improvements are most likely to attract interest and yield a high ROI.
  2. Cost-Benefit Analysis: Compare the costs of potential improvements with the expected increase in property value. This will help prioritize projects that offer the best returns.
  3. Location: The location of the land significantly influences the types of improvements that are most beneficial. For example, installing utilities may be crucial in a remote area, while landscaping might be more important in a suburban setting.
  4. Legal and Regulatory Requirements: Ensure that any planned improvements comply with local zoning laws and regulations. Failing to do so can result in fines or legal issues that negate any potential gains.
  5. Timing: Consider the timing of the sale. If the market is currently favorable, it might be worth selling quickly rather than investing time and money in improvements that may not pay off immediately.

Conclusion

Investing in land improvements can be a highly effective way to increase a property’s value and appeal to potential buyers. By focusing on essential improvements like clearing and grading, utility installation, access roads, landscaping, fencing, environmental enhancements, and securing zoning permits, landowners can enhance the marketability of their land and achieve a positive return on investment. However, it’s crucial to conduct thorough market research and cost-benefit analysis before embarking on any projects. In some cases, selling the land as-is may be the most practical and financially sound decision. By carefully evaluating their options, landowners can make strategic improvements that maximize their property’s resale value.

Thinking of Selling Your Land?  CJ Real Estate Can Help

We are real estate experts specializing in ranch, residential and commercial land sales. Whether you need to diversify assets quickly for top-dollar via auction or are prepared to list and wait for a buyer to come to you, the CJ Real Estate team provides comprehensive solutions and proven sales performance. When results matter, choose CJ Real Estate.

 

Keys to Land Auction Success

Posted by CJ Real Estate Auctions on with 0 Comment

Successful land auction buyers understand that strong pre-auction preparation is essential to buying land at auction. In this article, we’ll review keys such as pre-sale due diligence, bidding strategy, financing, auction communication and the process for closing on the purchase after the auction.

 

Auction Due Diligence

Because land offered at auction is sold ‘as-is’, it’s vital that you fully understand what you’re bidding on. Ensure that what you think you are bidding on matches what they’re selling by reviewing the documentation physically inspecting every parcel.

Review the auction terms and conditions. Most will include an ‘as is’ or ‘as is, where is’ clause. These are real estate term used to communicate that the property being sold is not subject to financing, inspections or any other contingencies – the property will be sold in its current condition (regardless of what the condition may be), and the seller won’t be making any repairs, updates, or remediation before closing.

Never assume. Land that’s been in one family for generations may have been split and parceled multiple times over the years. Often, current landowners are surprised to find that what they think they own is very different from what they actually own. It’s not uncommon for fence lines, legal descriptions, and actual survey boundaries to be different.

Confirm acreage amounts. Reputable auctioneers will provide documentation of how the acreage is determined – survey or legal description – in the sale documents. It’s vital that you know exactly what you’re bidding on. If you don’t see it, contact the auctioneer and request that information.

Know the asset. Online records and GIS mapping help you better understand the property beyond your visual inspection. County assessor’s website will show you the current assessed value, classification, zoning, water lines and tax records. GIS mapping systems such as Land ID, can give you a deep understanding of how the land flow and topography, multiple aerial imagery, approximate land boundaries, designated land use, aquifers, wetlands, FEMA zones, soil maps, city and county lines, school district boundaries, utility easements, transmission lines, conservation easements, oil well locations, railroads, opportunity zones, and more.

Avoid surprises. Buying ‘as is, where is’ also means that any non-real estate sitting on the land on sale day transfers with the land unless previously disclosed as part of the terms and conditions. That means that you could be responsible for removing any abandoned equipment, junk or other items sitting on the land. Review the auction terms and conditions to avoid unexpected hassles and expenses.

Without proper due diligence, you could end up paying for land without acquiring it, paying property taxes on land that you don’t own, or failing to leverage acreage you never knew you owned.

 

How to Value Land

The comparable sales approach to valuation works well for residential homes but this method falls short in determining the value of assets like land. Land is typically offered for sale at auction because the auction method delivers true market value for the seller. There’s no guessing at a listing price. No fear of setting the asking price too high or too low.

Every piece of land is unique. Savvy buyers know that they must determine the value of the land for them – rather than presume the value is universally accepted. Start by identifying your short and long-term goals land ownership goals. This will help you determine the type of land you need and shape your valuation. Consider the following:

  • What are the best uses of the land?
  • What improvements and structures are on the land?
  • How does the location, condition, utility access, transportation infrastructure, market velocity, and current zoning impact potential land uses?
  • Will the factors above eliminate some potential bidders? If so, how does that affect the value?
  • What will you use the land for?
  • What improvements and structures are needed for your uses?
  • Are there multiple uses for the land and which of these can produce income?
  • Are you planning to purchase the land as an investment? If so, what’s your turn-around timing?
  • What is your land exit strategy?

Understand Auction Bidding

Auctions can be as unique as the piece of land you’re bidding on. They can be held in-person, online, via telephone or a combination of all three. And there are a variety of sale methods that bidders must understand to bid with confidence.

Marketing materials should clearly outline when, where and how to bid. Request help from the auction team to ensure that you understand every aspect of the process. Be sure to reach out to the auction staff well in advance of the auction because once the bidding starts, the action is fast and intense.

Reserve or No-reserve Land Auctions

Land may be sold with or without reserve. Reserve refers to the minimum bid the seller is willing to accept.

Land sold without reserve will be sold to the highest bidder or bidders. These are also referred to as an ‘Absolute Auction’ or ‘No-Reserve Auction’. It is called an ‘Absolute Auction’ because the property will absolutely sell to the highest bidder.

The sale terms and conditions should disclose if a property is offered with a reserve. The actual amount of the reserve may or may not be disclosed.

 

Land is Sold by a Variety of Auction Sale Methods

Choice Auction:

Also known as ‘Buyer’s Choice By The Acre’, this traditional sale method is used when more than one land parcel is being offered at the same auction. Bids are made on a per-acre basis. It’s a straightforward, easy to understand, and fast sales process for bidders and sellers.

Bidding starts low. Bidders compete by raising the bid against each other until a high bidder emerges. The successful high bidder then chooses which parcel or parcels they want from a grouping of similar or like-kind properties. After the high bidder selects the parcel(s) they want, those parcel(s) are removed from the available parcels and bidding commences for the remaining parcel(s).

The high bid is multiplied by the number of acres to determine the sales price.  For example, if the high bid is $4,200 on a 100-acre parcel of land, the sales price is $420,000.

Multi-Par Auction:

This auction method establishes a price for each tract before the auctioneer starts the bidding. Bidders identify what parcel or parcels they want to purchase. Then large multi-parcel bidders compete with small individual parcel buyers. This process often takes several hours. Bidding ends once no new bid raises have been placed within a specified time frame. The property is sold to the tract combination(s) that produce the highest total sale price.

Dutch Auction:

Rarely used in land auctions, this is a sales method in which the price on an item is lowered until it gets a bid. The first bid made is the winning bid and results in a sale, assuming that the price is above the reserve price. This is in contrast to typical auctions, where the price increases with each bid placed.

Sealed Bid Auction:

This method involves setting a date that all offers must be submitted by. This period is typically less than 60-days. Sellers receive multiple offers that they can analyze and respond to resulting in the potential for post-offer negotiations.

 

Land Auction Bidding Strategy

Auction creates true market value – the property is sold for exactly what people are willing to pay for it. But, not every property is worth the price it’s bid up to. The energy and competitive energy that auctions generate can lead to impulsive decisions.

Bid Limit:

Set a firm budget and stick to it. If the bidding surpasses your bid limit, walk away. Avoid letting the excitement of the auction sway your judgment.

Bid Psychology:

It’s the auctioneers job to create competitive energy. Great auctioneers do more than manage the process; they work the crowd into a frenzy of competitive energy. Accordingly, savvy bidders are able to use that intensity to their favor.

Bid with Confidence:

If nobody else bids when the opening bid is announced, take the initiative and offer the minimum bid. Be patient. Wait for the competition to show themselves. When you do bid, be forceful with your voice and body language to announce that you mean business.

Bid Ruthlessly:

Once bidding starts, stay quiet. Gain a feel for the other bidder’s intensity and watch for others surveying the competition too. Entering your own bids will only increase the competition and may drive the price up.

Wait until you feel the competition is cooling off and only one bidder remains. Let the auctioneer say, “going once, going twice” before announcing your bid. Then forcefully announce your bid and, make the raise increment substantially higher than the last bid. This technique can demoralize or take your opponent by surprise and immediately end the bidding process.

Bid Unpredictably:

Avoid bidding in consistent, round numbers. It’s a small detail that wins more auctions. Always raising your bid in the same increment and stopping or hesitating your bid at a round number reveals your true intentions to your competitors.

Keep bids low by eroding their confidence. Raise your bid by different amounts each time. Mix up your bid increments so that your opponents can’t figure out your bid limit. Think about it, if you raise the bid by $1,000, then $500, then $100, and then $50, your opponents will bid more confidently knowing that your bid limit is near.

People love round numbers. Avoid that trap. Know your maximum, but don’t make it predictable. For example, if you decide that the property is worth $200,000, set your budget at $200,250 rather than a figure that is an even thousand. When a bidder stops bidding at a round number it’s a good indication that they’ve reached their limit.

 

Be Prepared on Auction Day

After performing your due diligence, evaluating the land, setting your budget and honing your bid strategy, you’re almost ready to place your auction bids.

Confident auction communication is your next critical element and that begins by understanding the auction process.

Plan to arrive early on sale day and register as soon as you arrive. Introduce yourself to the auction staff and ask questions. This signals that you’re a serious buyer and will result in you being able to gain the auctioneer or ringman’s attention when you need to.

You’ll likely receive a ‘sale-day information packet’ when you register. Carefully review it. This is where you’ll find last-minute changes or new property information. The auctioneer will likely read this information verbally into the record before the auction, then ask the crowd if there are any questions. Don’t be shy. Ask questions and clarify any discrepancies. Ensure that you know what you’re bidding on.

Once the auction begins, record the price per acre and total price of every parcel being sold. Typically, bidders will select the most valuable parcels first, and pay a higher price-per-acre for them. It’s common for parcels offered in the same auction to sell at very different prices per acre. Knowing which parcels are most valuable to you will help you avoid overpaying.

If you’re feeling confused during the auction, request clarification from the auctioneer. Auction companies understand that buying land is a major decision and want bidders to bid confidently. If at any time you need to ask a question, it’s absolutely okay to signal the ringman or ask the auctioneer directly. Be clear and forceful. Stand up if you need to. Be certain that your actions aren’t mistaken for a bid.

 

Closing on Your Land

Immediately after the auction, head over to the sale managers table to place your earnest funds and complete all contracts.

Once the purchase agreement is signed, be sure to note all contact info for any business partners, including accountants and attorneys, and retain your copy of the agreement.

Pay attention to the closing terms and conditions. Ag land that’s in production at the time of sale may have disclosures that allow the seller to stay in production until the crop is harvested.

For reserve auctions, the seller or seller representative will normally have up to 10 business days to confirm the sale. Closings are typically scheduled between 30 to 90 days after the auction.

 

ABOUT CJ AUCTIONS

CJ Auctions is the leader in real estate auction partnering with ranchers, landowners, trust attorney’s and investors throughout the central United States. Specializing in ranch, residential and commercial land transactions, the CJ Auctions provides comprehensive solutions and proven sales performance.

Advantages of Selling Lake Property at Auction

Posted by CJ Real Estate Auctions on with 0 Comment

Selling lake property through a real estate auction rather than the traditional ‘list and wait’ method offers several distinct advantages for property owners. Here’s a detailed look:

Advantages of Selling Lake Property Through Real Estate Auction

Speed of Sale

  • Quick Transactions: Auctions have a set date, ensuring the property is sold quickly compared to traditional listing methods where sellers list and wait for offers. When you list a property, there’s no way to know how long it will take for the property to sell. Lake property is particularly susceptible to lingering on the market for months, if not years. During that time, you are likely to incur holding costs and feel pressure from your realtor to lower the price of the property to attract more buyers.

Transparency

  • Firm Marketing Plan: With auction, all the details are buttoned up before you sign the sales agreement. Fees are clearly defined and agreed to up-front. The auction company will propose a clear timeline and a specific sale date, reducing uncertainty and allowing for quicker financial planning. Once the sales agreement is signed, most properties are marketed to be sold within 30-45 days. The entire process, from proposal to closing, is typically completed within 90-days.

Certainty

  • Definitive Sale: Properties are sold in ‘as-is’ condition without financing or inspection contingencies. Sellers know that their property is going to be sold and the date it will happen. And, the high-bidder is legally obliged to purchase the property at the bid price offered.

Hassle-Free

  • Open Houses are Scheduled: well ahead of time so there is no need for homeowners to manage and accommodate last-minute requests for a private showing.
  • No Negotiations: there is no back-and-forth negotiating when selling through auction. Once the high-bidder is determined, they are legally bound to close the sale at the bid price offered.

No Improvements Needed

  • Real Estate is sold As-Is: property owners do not need to worry about expensive improvements or updates when selling via auction. Due diligence is the buyers responsibility and they agree in advance to bid on the property in ‘As-Is’ condition.

Market Value Realization

  • Competitive Bidding: Auctions can drive up the price through competitive bidding, often  achieving a higher sale price compared to traditional listing sales.

Marketing Exposure

  • Intensive Marketing: Auction houses often employ aggressive marketing campaigns, increasing property visibility and attracting serious buyers. Both auction and traditional sales methods use popular sites like Zillow and Realtor.com. Only Auction employs a broad spectrum of marketing deployed over an intense 3-4 week marketing period to generate interest, excitement and bidder demand.

Buyer Commitment

  • Non-Contingent Offers: Buyers at auctions typically make non-contingent offers, meaning they are ready to purchase without financing or inspection contingencies.

Conclusion

Selling a lake property through a real estate auction can be an effective option for lake property owners, especially for those wanting the certainty of knowing when their property will sell without the hassles of negotiation, the anxiety of hoping for an offer, and the risks associated with contingency dependent sale closing.