Thursday, April 22, 2010

Rural property, an American opportunity.

Real Estate… That term in itself means so much to so many people, yet means different things to each. There are investors who put their money in REIT’s, other types of investors who purchase rental properties both commercial and residential. There are the middle class working people who may want to realize the American Dream of home ownership, and possibly a second home on a lake or maybe some hunting land. There are farmers who need land to make a living. And there are real estate developers who buy large tracts of land and sell individual lots to people who want to build. This is not all the ownership types or even close to all of the reasons to invest in real estate. For the purposes of this story it will set us up for the next part of the discussion which is buying and selling rural properties.

Rural property and rural property owners are much different than property in town and the reason is primarily you can have more land for the money in the country, as well as more land altogether. They are sports men and women who are out on the land, they know the rural areas where they work, because they not only work with the land, they hunt it, fish the lakes, and help their neighbors with their land. You see this in areas that practice various forms of Whitetail deer management…one landowner puts up a sign and tells all of his neighbors that he is not going to harvest an animal unless it meets his specific criteria. Then all of the neighbors start talking about this to their friends and neighbors, then next thing you know you have entire townships which all practice harvesting deer the same way, and if that way is good for getting deer to be more mature and have larger antlers its considered by many to be successful. With real estate, it’s important to have a model that puts people in the best possible places for success. Rural property owners have special needs, and knowledge that their realtors must posses in order to be able to professionally do their jobs. Take a realtor from Milwaukee, Wisconsin and ask him to explain a “septic” system. Vise Versa, there are many things that people in real estate in the country don’t particularly know about city property.

The other thing that works so well for this type of scenario is that with rural people who only practice in a rural area, you begin to develop a special symbiosis which can lead to a fantastic buying or selling experience. As far as specific knowledge goes certain real estate companies have sprung up to specifically work these areas and provide service to ONLY rural property owners. This is specialization of the highest order and will prove to be the way rural property gets purchased or sold. You don’t hire an insurance claims lawyer to sell your business, you could…but what would the point be? You will then be paying for them to learn how to sell a business. It’s not their specialty; they are not the best at it. Look at rural property specialists when you need rural property information and I promise you will be much better off when you need to buy or sell.

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