Hello everyone just wanted everyone insight on how you believe the land business
is going like are anyone seeing any difference on the selling side or do you think everything going on with the tariffs are affecting land investors? Also, what would be your best advice for someone who is still fairly new to the business?
Hey @Rob_G, great question.
No doubt, the market has changed over the past year or two. Increased competition, tighter buyer demand in some areas, and higher marketing costs (USPS keeps increasing the cost of postage, which isn’t great for people who rely solely on direct mail) are making it harder in various ways.
That said, land is still selling. The deals just have to be better. You can’t rely on mediocre properties or thin margins like you might’ve been able to in 2021. Buyers are more cautious and selective right now. Land is still (and has always been) a luxury purchase, and when interest rates are higher and people have less money to throw around thanks to higher inflation, luxury purchases are usually the first things to go.
As for tariffs, I haven’t seen a direct effect on land prices or sales myself, but that kind of macroeconomic pressure can influence buyer sentiment, especially for investors or developers watching materials costs.
For someone new to the business, my advice would be:
- Focus on buying at a deep discount. Your eventual profit has a lot to do with what you buy each property for.
- Buy high-quality, desirable properties. Even if the price is right, avoid junky properties with no access, bad neighbors, or zero demand.
- Know your exit and have a clear plan for how and where you’ll market each property before you buy. It also doesn’t hurt to have a Plan B, or even a Plan C, in case Plan A doesn’t work out.
I’d love to hear what others are seeing too.
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Thanks so much Seth great response always a pleasure 