A good time to sell and buy land
February 18, 2020 By Meghan Grebner Filed Under: Human Interest, News
The co-founder of an online auction site says increased and
steady land values combined with lower interest rates makes it a good time to
both sell and buy land.
Mark Stock with BigIron Realty says this scenario doesn’t
happen often. “Interest rates are down
almost a full percent if not a little more than it was year-over-year,” he says. “So a $1.2 million purchase on a 30-year-note
will save that buyer a little over $340,000 during the life of that loan.”
He tells Brownfield, right now it’s a sellers’ market and
that isn’t likely to change anytime soon.
“There is not a lot of land for sale,” he says. “Land is still be held in pretty tight hands.”
Stock says they’re also seeing more investors return into
the farmland market. “When that’s happening,
we know people are getting pretty optimistic about the land values long-term,”
he says. “And I think that’s having some
influence on those land values as well.”
He says there are also options available
for farmers to generate additional revenue without selling their farmland. For example, Stock suggests utilizing leases
and auctions to sell hunting rights for each season on land that is wooded and
can be used for hunting.
Brownfield interviewed Stock at the 2020 National Farm
Machinery Show in Louisville, Kentucky.
AUDIO: Mark Stock, BigIron, 2020 National Farm Machinery Show
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