When looking to buy or sell land, there are a variety of factors that play into determining the value of a property. In many cases, there may be additional value on a piece of land that’s not immediately obvious at a first glance such as additional income streams from valuable minerals, carbon credits, or the potential for solar, wind, or hunting leases.

As one of the founders of Landgate, Craig Kaiser, explained during his recent appearance on the National Land Podcast, Landgate is an essential tool for buyers and landowners in determining the true value of a piece of land. Here are a few examples of how Landgate could uncover the hidden value of your property or a prospective purchase!  

How Can Landgate Benefit Landowners and Investors?

One of the biggest strengths of Landgate is its ability to provide investors and landowners with detailed information about a property and enable them to make more informed decisions about whether to buy or sell. Landgate’s database can also illuminate income opportunities that may not have been previously considered, as Craig explains here.

“I’d say the majority of landowners in the US have the mentality of, ‘I don’t want to sell my land.’ And that’s great, I don’t want to either. I’m not a huge landowner but I don’t want to sell the land I have. I would absolutely love to make some more money off of it though and be able to buy more land or pay off my land or whatever it is, and that’s the opportunity that Landgate gives landowners and brokers. So we’ll go ahead and look at all of the seven or eight different categories of highest and best use for this land. And when you see that there’s a massive potential for an annuity on this piece of property, there’s a switch in mindset. 

And this is an example from National Land Realty agents that use our platform, they’ll call me on the phone and say, ‘Craig, I’ve got a really nice spot here. What do you think, should we sell it?’ And I’ll say, ‘No, absolutely not!’ You don’t want to sell that piece of property, and the landowner shouldn’t either, because it’s worth too much! 

They may be getting offers that are 50, 60, or 70% above market value, and the reason why is because in 4 or 5 years after solar panels have been installed on that property, it’s not worth 60 or 70 percent of the market value. It’s worth 200, 300, or 500% percent of the market value because of the massive amounts of additional cash flow that can now be generated from that piece of property. Changes like this will take a while, and there’s going to be resistance to it, but [Landgate] is fundamentally changing the way land is invested in in the United States.”

Landgate’s comprehensive database allows buyers and landowners alike to learn more about the topographical features of their property and make more informed decisions on whether to buy or sell a piece of property. With more access to data, everyday landowners and investors can uncover potential income streams and make decisions about their property with the same level of certainty as multi-million dollar investors.

What Kinds of Income Opportunities Are Available for Landowners?

There are a variety of income-producing opportunities available to landowners depending on the specific qualities of a property. Some of the most common income opportunities for landowners are mineral leases, solar or wind leases, CRP programs, and carbon credits. However, there are more opportunities for income generation with many properties that most people tend to overlook or are completely unaware of, as Craig explains below.

“When I talk about income opportunities like oil and gas development, the first response I often hear is,  ‘I don’t want to do it. I want a secluded area, I don’t want to be messed with, and I don’t want to hear a pump jack. I’m not gonna do mining, I don’t care about solar panels, I hate wind turbines, etc… Well, that doesn’t rule them out of potentially earning annuities on their property, and that’s why I say there aren’t just four main opportunities for income, recreation, ranching farming, and timber. There are seven or eight different buckets here. 

By simply not cutting your trees down, you could potentially be earning a carbon credit and a potential annuity. It’s possible that the potential value of carbon credits didn’t even cross the seller’s mind. So if you’re looking at buying that piece of property with 40 acres of trees and a little cabin on it, you could look at it and say  ‘This ground is sequestering three and a half tons per acre of carbon because I just clicked on it on Landgate and they told me that real quick.’ Well, now you’re making a better decision than the seller. The person who wins in any transaction is whoever has the most data and information, that’s who’s going to benefit or win the negotiation.”

Craig goes on to explain that there are some misconceptions regarding the value of certain income-producing commodities, like gold for example. Craig explains that while the price of gold may be around $2,000 per ounce, many people fail to consider the costs of extracting it. Alluvial mining operations require heavy machinery and can take significant amounts of time and diesel to produce results, which may make any potential income from the gold less significant. 

Comparatively, there are other valuable elements, such as Molybdenum which are more valuable than gold and would be more worthwhile to pursue. Some of the most profitable opportunities available to landowners are the ones they haven’t even heard of or considered, which makes Landgate’s readily-available property information all the more valuable. 

If you’re ready to learn more about potential income opportunities on your property, contact Landgate today! After you’ve identified additional value on your property and decide it’s time to sell, then get in touch with your local National Land Realty Land Professional and start the conversation today!