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Earn More Commission with Land

Commission from land is expanding with the option to lease for renewable energy or carbon credits. The demand for renewable energy and the land to source it from are increasing with no signs of slowing down. Land realtors and land real estate brokerages can monetize this movement through commissions on energy and carbon leasing.

How Energy Commissions Work

Land real estate agents are the conduit to get energy developers, investors and capital market groups connected to landowners. These groups are looking to quickly deploy their capital and close on deals. When agents bring land opportunities to the market they earn significantly higher commission rates than standard real estate deals. These commissions will also last the length of the lease. If an agent helps a landowner post land for lease on LandGate, there is a higher chance for a solar developer to take interest. Thus creating a 30 year lease on this land. Then the landowner will see annual revenue from the lease. While the representing agent will also see an annual commission for bringing the deal to the developer. With that connection, the average agent is seeing a significantly higher real estate commission. Compared to what they would normally receive with a standard real estate transaction, like selling a home. This is a different commission rate for a buyer's agent or seller's agent when looking at land. Meaning real estate agents are getting paid more commission per year and over longer periods of time. For example, these projects can be with a for sale transaction but more often they are with a land lease. These leases can range from 1 year up to 30-40 year land leases.

Why Commissions from Land are so Valuable in of the Current Market

We are currently seeing an imbalance in supply and demand. Investors and developers are looking to buy or lease more land than what is currently available on the open market. This gives landowners and agents the advantage to see higher than average per acre per year revenue to develop renewable energy projects. Energy investors and developers have a significant amount of capital that they are needing to deploy to hit their goals. This increased demand from developers and investors to deploy capital into renewable energy sources is largely driven by the Inflation Reduction act of 2022. The industry is seeing a large bottle neck from groups with capital. With wanting to develop renewable energy projects, like solar power, wind energy, carbon credits, and carbon sequestration. All renewable energy resources have seen an increase in demand. By using modern land technologies like LandGate, agents can post land with the specific energy resources they want to sell or lease. After posting land listings, you are directly connected with these groups who are ready to develop renewable energy projects quickly. It’s then up to agents and landowners to accept or decline the offer like a standard land transaction.

Leasing is an Alternative Way to Generate Revenue for Agent & Client

It is important to inform your client about the various options to earn money from their land. Now instead of only being able to offer selling options to generate revenue, you can offer options to lease the land. This option is going to be the easiest idea to sell. Because they’re not only going to make money, but also retain their land in the process. This is especially important since farm land sale price values are continuing to increase. For example the nationwide value increased 12.4% and reached 3800 an acre, the highest since 1970 (USDA Land Values Summary). With these drastic increases, landowners are needing to look at other sources of revenue. Especially where their historic farming, or agriculture practices might have worked in the past. It’s now, more than ever, important to capture every revenue source you can from land making leasing is a good option.

How to Determine the Most Valuable Option for Your Client

The value of land has many ways that it can be determined. Many online sources only use surface information and historic data points. LandGate is the only company that calculates the potential rent payments for land based on its resources. In other words, LandGate evaluates land for potential solar, wind, carbon, mining, and mineral development. This full analysis of the property allows you and your client to understand the entire revenue potential for the land asset. With LandGate and a custom land report, landowners and agents are able to know the value of every aspect of land. The report identifies the possibility of a renewable project and expected potential revenue from the resource of their choice. These can all be posted on LandGate for free, with the exact resources you’re looking to sell or lease. As real estate agents, the goals are always to represent the best interest of the clients. While also making sure they receive the highest and best value for their transaction. Being fully informed on every aspect of land is more important than ever and representing clients best interest for generations to come. Demand for clean and renewable energy is continuing to increase and real estate agents are a crucial component of that.

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, 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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