BLOG: Colorado Ranch Marketplace: Different This Year from Last (And What That Means for RANCH BUYERS)

Colorado Ranch Marketplace:

Different This Year from Last

(And What That Means for RANCH BUYERS)

By Michael Landreth, ALC

At this time last year, March 2016, there were 142 properties on my list of all-available Ranch Properties for sale in the state, and of those, 72 were over 1,000 acres.  That’s 51% over 1,000 acres.

There are 159 properties on my list today, one year later, a 10% increase from last year. And 91 of those are larger than 1,000 acres.  That represents 57% of the total market.

So, there is clearly more inventory on the market now than this time last year, and a higher percentage of inventory over 1,000 acres.  In fact, the 1,000-acre properties gained about 20% with the increased numbers.

What does that mean for BUYERS of Ranches?

Well, It means there is more to choose from.   It means there could be some really great values out there.  It means there are a lot of leftovers from past seasons of the market. It means there could be more junk.  It means there could be some motivated Sellers.  It means it takes a bit more effort to determine the best values out there and why; it means all of this, but, there are also, clearly, more value choices out there now than last year.

An additional Note, 52 of these properties currently on the market, have reduced their prices within the last season.  That’s 33% of the market!  Still, Real Steals are few and far between as the market continually makes adjustments over time, but really good deals on value are always out there certainly, if you know how to look.

While 159 total ranches may seem like a lot of ranches to sort through, they all come with different locations, categories, and sizes, and not two of them alike. The more specific your search is, the fewer qualifying properties you have to choose from that match your more exacting parameters. That’s a good thing.  But you always start by broadening the market to understand the big picture First.  When you sort that market and refine your request of it, you learn more about your true desires.

In the end, the most important parameter affecting all valuations, and your vision of the perfect property: Location.

Location is the answer to these questions: Place? Plains? Mountains? Elevations? Weather? Population? Access/Transport? Terrain? Boundaries? Exposure? Size? Neighbors? Price/ACRE? Objective/Use?  It is clear that Location, in one sense or another, affects everything, and always plays a huge part in this Ranch selection process from start to finish.  Location is not simply a crossroads or spot on the map. Be sure to understand all the nuances of location as you examine Ranches.  It makes your decisions easier.

So your search for a perfect Ranch Property will be based:

First, on your limits of expenditure (i.e. How much will you spend); and then;

Second, on location specifics (really, where & what do you want it to be),

It is at that moment the search becomes more refined to those properties you would specifically desire, as the market is narrowed considerably through application of knowledge and comparison.  The hunt now becomes one for Value, it’s how you distinguish between similar properties you are attracted to… to identify the best value ranch on the market for your needs.  By shopping this way; you make a great buy. You save a bunch of money in the short and long run both, from purchase decisions, future values projections, interim market & location stability, and by buying right with right terms and right price.  When you understand where the value is, in your desired market, then it’s much easier to go get it, whether it’s scooping up great deals others miss, or negotiating the value into the property you buy.

Like I always say, “you can’t identify which properties are the great values, without an understanding of the entire market and their place within it”.  And interestingly enough, the properties that represent the best values for what you want in the market, become the most interesting!

 

{Michael Landreth, ALC, of Landreth Ranch & Land Co, and found at: http://www.WeKnowRanches.com, is a Nationally Recognized Broker/expert on Colorado Ranch Properties, who works with Buyers only.}