Common Misconceptions About Selling Land
Tim and Tom also explore the risks of land investments, highlighting the impact of zoning changes, infrastructure challenges, and market downturns. They reflect on the lessons learned from past cycles, including the Great Recession and the recent wave of land foreclosures. Throughout the conversation, they emphasize the importance of strategic timing, patience, and avoiding risky leverage.
Whether you’re a landowner, developer, or investor, this episode provides valuable insights into the realities of Texas land deals and how to make informed decisions in an ever-changing market.
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Key Takeaways:
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Market outlook for 2025 and beyond
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Misconceptions about land values and appreciation
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The reality of land investments and common risks
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Why appraisals and comps don’t always determine market value
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The importance of highest and best use in land valuation
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Factors that impact land prices (zoning, infrastructure, demand)
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The dangers of holding land for too long
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Lessons from past downturns and foreclosures
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Why selling land is different from selling a home
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The risks of putting debt on land investments
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Strategic approaches to buying and selling land
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The role of municipalities and regulations in land value
In This Episode:
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[00:00:00] Introduction to the podcast
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[00:00:55] The 2025 market outlook
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[00:01:18] Surviving and thriving in a tough market
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[00:03:02] Common misconceptions about land values
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[00:04:03] Misconception 1: Land always appreciates
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[00:06:10] Examples of land losing value over time
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[00:08:13] How market cycles affect land pricing
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[00:11:50] Misconception 2: Comps and appraisals determine land value
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[00:14:02] Highest and best use vs. market trends
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[00:15:33] Misconception 3: Land is always a good investment
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[00:16:04] The myth of land scarcity
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[00:17:36] Risks of infrastructure and zoning restrictions
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[00:19:22] The dangers of overleveraging land investments
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[00:23:02] Misconception 4: Selling land is like selling a home
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[00:23:40] Selling land is not like selling a home
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[00:29:30] Conclusion and final thoughts
Show Links:
Tom Dosch