Expert Interview
What Brings Down Property Value According to a Land Broker
Learn from a seasoned land broker about the factors that can negatively impact property value for rural land.
Centered around a parcel in Hancock County, Illinois, this case study walks you through the practical application of Acres' suite of due diligence tools.
Today we're excited to bring you a case study that encapsulates the power and efficiency of Acres in speeding up the research process for land acquisition. Centered around a parcel in Hancock County, Illinois, this case study walks you through the practical application of Acres' suite of due diligence tools, showing you how to swiftly find parcels, assess soil quality, evaluate historic land use, and even examine property taxes.
The Property
Jake Hofer, an experienced LandProz broker and host of The Land Podcast, takes you through the process of evaluating a particular parcel that was about to come up for auction. Comprising 83.6 acres of expired Conservation Reserve Program (CRP) land, this parcel represented a unique opportunity, offering a variety of attributes that could make it an interesting investment for the right buyer.
The Process
After identifying the parcel of interest, Jake used Acres to uncover the parcel's history. With the help of our historical imagery tool, he could look back at the land's usage over the years, spotting signs of previous agricultural production and identifying key features like ponds.
The next step was evaluating soil quality. With the help of Acres' soil layer and FSA map settings, Jake could see the different soil types across tillable ground and evaluate their implications for future farming efforts.
Beyond soil quality, potential issues such as flood risks were also examined. Using our flood tool, Jake could identify areas that may experience seasonal flooding due to a creek running through the property. Additionally, he examined property tax information from previous years, providing important financial insights.
The Comparison
To further enhance the due diligence process, Acres enables users to compare potential acquisitions with similar properties. Jake found a nearby 80-acre farm in McDonough County, which sold recently. Using the comparable sales data and looking at various factors like soil quality and location, he was able to get a good idea of the potential value of this property in Hancock County to support informed decision making.
Final Thoughts
This demo with Jake Hofer underscores the breadth and depth of analysis that Acres can provide to those looking to invest in land. Whether you are a seasoned investor or taking your first steps in land acquisition, Acres offers you a wealth of tools and insights to streamline your due diligence process and make informed decisions.
