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Earn More Commission with Land

Earn More Commission with Land

The traditional image of a bustling real estate agent typically includes vibrant open houses and the hushed negotiations of urban apartment sales. But in the realm of real estate, land is an often-underestimated asset, a blank canvas that holds a trove of possibilities for savvy professionals looking to diversify and escalate their commission possibilities.

Your next deal might not reside in the swift transaction windows of residential or commercial properties. Instead, it could be rooted in the anchored value of vast lands, waiting to secure your spot in a growing market for renewable energy projects and conservation endeavors.

At an affordable rate of $10 per month, LandApp provides comprehensive data essential for assessing the value of your client’s land for different resource leasing opportunities. Factors such as the type of land, proximity to substations, transmission, and distribution lines play a crucial role in estimating the property's value for different renewable energy opportunities. LandApp meticulously considers each of these elements in its valuation, offering a detailed and accurate assessment.

The Inner Workings of Land Transactions

Realizing the commission potential begins with understanding that each facet of the real estate industry is unique. While the pace of land sales might be deemed slow to an outsider, it's this very longevity and permanence that offers a distinct advantage to the diligent broker.

The Stable Investment of Land

The land isn't just square footage; it's potential. Unlike the ebb and flow of urban properties, land remains a steady investment, often appreciating without the nuances of market fluctuations. The commission on a land sale is a calculated step toward long-term financial gain, even if the initial sale isn't as substantial as a high-rise transaction.

Sales and Leases in Harmony

2020 saw a surge in the leasing aspect of land real estate, particularly where it intersects with the burgeoning world of renewable energy. Real estate agents who had merely been transactional figures found themselves straddling the roles of consultants and deal architects, paving the way for multi-decade leases in solar, wind, and other green energy projects.

Identifying the Gold Under the Soil

In the sprawl of open lands, the untrained eye might only see expanses of green or brown. But beneath the surface and along the horizon, there's commission gold to be found for those who know what to look for.

Spotlight on Opportunities

When it comes to land, there's more to its value than meets the eye. Topsoil conducive to agriculture, vast estates ripe for solar arrays, swathes of ridgeline perfect for wind turbines—these hold the blueprints for bolt-on businesses that can stretch a single commission into a steady flow of income through long-term leasing contracts.

Navigating the Zoning Maze

It's not just the land type that matters; its zoning plays a pivotal role in its potential uses. Agricultural zoning may unlock the doors to various renewable leases, industrial zoning might signal the proximity to urban expansion, while conservation zoning emphasizes its vital role in maintaining ecosystems.

How Energy Commissions Work

Land real estate agents play a crucial role in connecting energy developers, investors, and capital market groups with landowners eager to capitalize on their assets. These entities are keen to invest their capital and finalize transactions rapidly. Agents who introduce land deals to the market can command significantly higher commission rates than those typical of standard real estate transactions. These commissions extend for the duration of the lease.

By assisting a landowner in listing land for lease on platforms like LandGate, agents increase the likelihood of attracting interest from solar developers, potentially securing a 30-year lease agreement. This arrangement not only generates annual lease income for the landowner but also ensures a steady commission stream for the agent who facilitated the deal.

This innovative approach allows agents to earn commissions that far surpass those obtained from traditional real estate sales, such as residential properties. It represents a unique opportunity for both buyers' and sellers' agents to achieve higher earnings annually and over extended periods. Typically, these projects involve land leases ranging from 1 to 30-40 years, offering a lucrative alternative to the conventional for-sale transactions.

How to Determine the Most Valuable Option for Your Client

Determining the value of land involves various methods. Many online resources rely solely on surface details and historical data. However, LandGate stands out as the only company that assesses the potential rental income of land based on its resources. This means LandGate offers a comprehensive evaluation of land for possible solar, wind, carbon, mining, and mineral ventures. Such thorough analysis provides both you and your client with a clear picture of the land's total revenue potential.

With LandGate's detailed land reports, landowners and agents gain insights into the full value of their property. The reports highlight renewable energy project opportunities and the expected revenue from the chosen resource. These reports can be freely posted on LandGate, specifying the resources available for sale or lease.

For real estate agents, the primary aim is to safeguard the client's best interests and ensure they secure the maximum value from their transactions. With the growing demand for clean and renewable energy, being well-informed about every aspect of a land's potential is crucial. Agents play a vital role in representing their clients' interests for future generations and are key to meeting the increasing demand for sustainable energy solutions.

Why Commissions from Land Are so Valuable in the Current Market

Currently, there's a noticeable mismatch between supply and demand in the market. Investors and developers are eager to acquire or lease land, far exceeding the available plots on the market. This scenario places landowners and agents in a favorable position, allowing them to command higher-than-average revenues per acre annually for renewable energy projects.

The drive among energy investors and developers to allocate substantial capital to meet their objectives is significantly fueled by the Inflation Reduction Act of 2022. This act has spurred a heightened demand for investing in renewable energy resources, including solar power, wind energy, carbon credits, and carbon sequestration, which have all experienced a surge in interest.

The bottleneck in the industry arises from groups possessing the capital and the desire to initiate renewable energy projects. By leveraging advanced land technologies such as LandGate, agents can list properties highlighting the specific energy resources available for sale or lease. These listings directly connect them with parties poised to embark on renewable energy projects rapidly. The decision to accept or reject offers remains with the agents and landowners, mirroring the traditional land transaction process.

Leasing is an Alternative Way to Generate Revenue for Agents & Clients

Educating your client about the multiple ways they can monetize their land is of paramount importance. It's not just about presenting the option to sell for immediate income; introducing the concept of leasing as an attractive alternative can significantly enhance their financial strategy. This approach is especially appealing as it enables landowners to generate a steady stream of revenue while maintaining ownership of their property, a benefit that cannot be overstated.

The importance of considering various revenue streams becomes even more critical in light of the ongoing increase in farmland values. For example, a notable nationwide surge in land values was reported, with a 12.4% increase bringing the average to $3,800 per acre, marking the highest point since 1970, as detailed in the USDA Land Values Summary. This significant growth underscores the potential financial benefits that landowners stand to gain from exploring different monetization strategies.

Given this considerable rise in values, landowners find themselves in a position where it is more important than ever to diversify their income sources. Traditional farming or agricultural practices might not yield the same profitability as in the past, thereby making the exploration of alternative revenue streams like leasing not just beneficial but essential.

In the current market scenario, leveraging every possible revenue opportunity from land is critical, and leasing emerges as an excellent option amidst these alternatives. It offers a balance between earning potential and retaining control over one's land, making it an increasingly popular choice among landowners looking to maximize their assets' value.

About LandGate:

LandGate is the world's best and leading marketplace connecting landowners and real estate agents to renewable energy developers and investors. LandGate is an active nationwide marketplace for US land and its resources: solar, wind, carbon, minerals, soil, and water.

By posting on LandGate you get access to a different market than other land and real estate sources. Getting started with LandGate is the easiest way to expand or start your land real estate business. We offer an unseen marketplace, the opportunity for commissions off leasing land, and also custom reports making you a land expert!

Learn more about LandGate and LandApp.


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