Buyer Beware
If you are an experienced Antelope Valley land investor and are looking
for a broker with whom you can develop a long term relationship of trust
I suggest you read this section.
If
you are a new or first time Antelope Valley land investor,
and/or live outside of the
Antelope Valley, you need to read
this section.
Any
investment idea, if gone about in the wrong way, can result in a loss
of investment
dollars. In this respect, Antelope Valley land is no different
from any other type of
investment. To be a successful Antelope Valley land investor,
and to avoid unnecessary loss of capital, the investor needs to
be aware of some basic
"do's and don'ts".
Almost monthly,
I correspond with land owners, from all parts of the globe, that
have invested in AV land, but have done so in the wrong way. In
almost every case, the mistake was the same:
An
uninformed buyer purchased their land directly from a very
well informed seller, at a seminar,
or from a land company, from outside of the Antelope Valley.
It was an "amateur buyer" purchasing from a "professional
seller".
Professional
sellers of land usually have the words "Land"or "Land Company"
in their name, or advertise as an "investment group". These "Pros"
buy their land from brokers inside the AV,
then resell their purchase to investors that live outside the
AV. Their business is the buying and reselling
of land; their own land. They represent the interests of
only one party: themselves.
Since these land companies are not violating any laws, the only protection the individual investor has is knowledge about the AV land market. It is incumbent upon the investor to protect themselves by becoming well informed about the AV before investing their money. Buying
AV land at "seminars", from
"land companies", or from "investment groups",
located outside of the Antelope Valley, usually
results in the buyer severely
overpaying for their land, and/or ending up with "average to poor quality"
investment land.
Why
?
Most buyers, outside
of the AV, do not have ready access to current AV land market
values. Most buyers outside of the AV do not have convenient
access to a knowledgeable
AV land broker to advise them as to which areas of the AV
are best for investment, and which areas should be avoided. Even
at inflated price levels, AV land
may seem "low priced" in relation to land prices
where the investor lives.
An
Analogy
When
shopping at the grocery store, would you pay $5.00 for a bottle of ketchup?
No you wouldn't, because you know the true market price for
that bottle of ketchup is $1.50. Yet many AV land investors have
done just that; they have paid $5 for a bottle of ketchup, paying
many times more than is necessary to own AV land.
Do's and Don'ts
for Buyers
-Do
not buy AV land from seminars or land companies located outside
the AV. Seminars outside of
the Antelope Valley are one of the favorite venues
for these "land companies." Antelope Valley land, sold outside
of the AV, is almost always sold at prices
much higher than it's market value. Buying
land in this manner provides no way for the buyer to
accurately verify the land's true market value prior
to purchase.
-Do
not trust comparable sales provided by the seller; these are parcels
they have sold to other "investors".
-Do
not compare AV land prices to land prices where you live.
There is no
relationship. Any comparison is irrelevant and misleading.
-Do
use an experienced land broker from
the Antelope Valley. Broker's know their market; they will
be offering for sale, land owned by
other investors, not land owned by themselves. The real
estate broker acts as an agent for
you, and has a legal & fiduciary responsibility
to represent your best interests. If a broker violates
this responsibility, he could be subject
to disciplinary action by the Dept. of Real
Estate, and could have his license suspended or revoked.
-Do
insist on "comparable sales" before buying any land. Make sure
these are "real market sales", and not inflated
sales to other "investors".
-Do
choose a broker that is willing to keep you informed of the market's
progress during the time period you are
holding your land.
-Do
choose a broker that has the marketing skills to resell your property
for you.
In
summary, you need a broker that can:
-educate and guide you
through the buying process
-keep you informed of the market's progress during your holding period -advise you on the proper timing and pricing of the resale of your land
-market
the property for you to get it resold
As
in any profession, "not all brokers are created equal".
Some brokers, for your purposes, will
be better than others.
Before
investing your money, first invest your time in finding the
best full-service land broker you can. You can
do this by using the internet and sending out emails.
Ask a lot of questions.
Yes,
this will take some time, but if you do not do this, how
much time will you invest
to recover lost money?
Remember
this:
"In
land, you make your money when you buy, not when
you sell." If
you "buy wrong", by overpaying or by purchasing in the wrong area,
you have dead money, not an investment.
The
goal here is to limit the risk of your capital
to only one factor:
Market Risk
This
way your investment performance depends on one, and only one variable: the
future of the Antelope Valley.
My
Pledge to Buyers
1.
I do not use high pressure sales tactics. Take
your time learning about
the Antelope Valley. Subscribe
to my free email
news services which include: weekly
news updates & monthly newsletters
detailing all land sales sold through our Multiple
Listing Service. After taking
the time to learn more about the AV, then make your decision
as to whether or not AV land should be part of your
investment portfolio.
2.
I will inform you on the best areas
of the AV in which to invest based upon
your available capital.
3.
I will provide comparable sales to you to
ensure you that you are paying present market value, or less, for
your land.
4.
After the sale, I will keep you informed
of our land market's progress through my electronic news services.
5.
I have been in the Antelope Valley land market since 1980. When requested,
I will advise you on the pricing and timing of
the resale of your land, and market your land to get it sold.
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