Recreational Land and Foreclosures


Don’t catch a falling knife. This expression is commonly used as a caution to avoid buying stock that is dropping in price. Land market professionals of all kinds have been experiencing this sensation as prices continue to drop and buyers are scarce.
So what is a committed land professional to do?
The first step is to realize that, as in the stock market, not every aspect of the business is a falling knife. There are still areas of opportunity in the land business.
Two areas of great opportunity are Recreational Land and Foreclosures. Let’s take a look at each of these.

Recreational Land: This is the best time in the last ten years to buy that recreational tract, especially the ideal hunting tract. Buyers have the market to themselves for price and selection. Everyone, it seems, who missed selling their land during the great land price run-up is now openly marketing their land.
If you have been thinking about looking for the ideal tract of land to hunt, fish or farm on, this is a great time to go for it. The options are vast and the price is low. Now is the time to buy.
Foreclosed Land: The wave of land foreclosures is building steam. Foreclosed land must be sold – once at the foreclosure and again by the lender if they own the property.
Every land pro should be active in this growing category of available land.  Get to know your bankers and land lenders. My experience has been if you find a good land investment, the money will follow.
The next step is to realize that falling knives can be avoided. Determine the areas that are most likely to continue to drop in price and avoid them for now. Don’t spend your money here until they bottom out or stabilize. Watch out for trends where, even in the last few months, prices have dropped significantly. Search for areas that have maintained an average price, even if it is low, for several months.
It is a buyers market for land investments or to purchase land for recreational use. You were an expert on the market when prices were rising, so become an expert on the market of dropped prices. Your expertise is valuable to investors, so sell it.
Stop looking back at the way prices were, and begin to embrace the new climate. We wish you good luck.

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