Friday, September 30, 2016
I have run into a disturbing trend lately with real estate. I am finding that sellers are completely unrealistic in terms of wanting to sell their land. Every week I have at least 10 people call me to sell land, and every week I am trying to convince someone to buy land that they don't need.
Here is the brutal truth about vacant land in Mohave County.
80% of it is owned by people, corporations or investment groups from out of state-What does this mean? It means that these sellers are unfamiliar with the dynamics of our area. They don't have a vested interest in Mohave County and if they sell their land they are taking the funds out of our area and not reinvesting it in Mohave County or spending the money here. I am finding that they have owned the land for a long amount of time and are looking to capitalize on selling it here and will take the money out of the area.
8 new home permits were pulled in the city last month! - What does this mean? This means that at the current rate it will take 20-30 years to build out the lots that are already in place without having a huge influx of people moving here! That means that your land out in the desert will not see a home on it in my lifetime or your lifetime! Therefore the only way out of the land is for a farmer to buy it or another out of state investor that sees it as a long term investment.
Our water is being used up at a very disturbing rate! The last two years there has been a disturbing trend in the amount of farming that is taking place north of Kingman. I have been to every water meeting put on by the Arizona Department of Water Resources and they are not passing any regulations whatsoever in terms water withdrawal. Without diving into all the particulars that are covered in other blog posts that I have stated one can easily find that all the water in our area will be used up in one generation. In the next 30-40 years the entire amount of water that is reachable will be pumped out and used for growing cotton and alfalfa that is being shipped to Saudi Arabia and China.
The Millenials aren't buying land! What does this mean? Without the next generation buying land there is no one to sell the land to at a loss or profit. The buyers and sellers that I work with are all over age 60. When they pass on or get to an age where assets don't matter to them then we have to look to the next generation as buyers. However this demographic of buyers can barely afford getting into a home and they have no interest in buying land. There are many reports out there that prove that their wages aren't keeping up with the rising costs of living. Therefore buying investments is the last thing on their mind. Furthermore we are coming to what is called the demographic cliff. In 7 years from now there will be more "die-ers than buyers." What does this mean? There are more baby boomers that will be dying off than there are Generation X or Millenials to replace them. The Millenials are also a group that prefer experiences over assets. Therefore they would prefer a vacation to Hawaii than to own 40 acres in the middle of the desert.
Therefore when you call me to discuss the value of your land please listen to what I have to say and be realistic in your valuation.
Posted by Unknown