Archive for February, 2009

LAND & TREES

Tuesday, February 24th, 2009

In Maine these two elements have a strong inter-relationship.  It’s a no wonder in a state that is 90% forested and touted as the most heavily forested state in the Union.  For  landowners this has serious, positive financial implications.

 

Trees are living organisms that are destined to grow.  Trees are also a commodity that has value.  It is easy to conclude that over time, as trees get bigger they increase in value.  For a timberland owner, this value is called stumpage.

 

Market conditions also affect stumpage.  Over time the price for logs, pulp, firewood, biomass chips etc. increases as well.  Land values also follow this trend.

 

As an investment, timberland has three factors working in its favor to gain in value.  The common denominator is time.  The longer you wait to sell (timber, land or both), the higher the return for you investment.

 

Most folks think that this is great—for timber barons who hold thousands of acres.  The small investor can also reap the benefits of owning timberland.  Land tracts as small as 10 acres can be successfully managed for timber.  Even a woodlot that has been harvested recently has a timber component that can be managed to produce timber income over time.

 

Certainly consider timberland as an investment.  Both the trees and land rise in value over time.  While visiting our website bear in mind that most of our listings are timberland, even though they are being promoted as recreational properties.  You can enjoy your property by indulging in your favorite outdoor pursuit AND have the peace of mind that your investment is growing in value.    

BOOTS

Monday, February 16th, 2009

Strange title for a real estate company specializing in land sales, but consider this; proper footwear is essential for a land showing.  While looking at a house, one would walk from the car along a sidewalk to the home interior; any shoe would do.  However, when looking at land, you are at the mercy of the elements.  A good pair of shoes will help make the experience comfortable and enjoyable.

 

Imagine this scenario.  A husband and wife make an appointment with the local broker to look at a tract of land with a view.  It is mid morning, late June on a Saturday and the weather if absolutely beautiful with sunny skies and warm temperatures.  The vehicles are parked and the trio set out for a modest walk to see the view.  There is a rough trail that climbs a small hill, then dips down to a brook, climbs a bigger hill, round a corner to a prime building site with THE VIEW.  The broker points out that a driveway can easily be constructed along their proposed route including a culvert to cross the stream.

 

Less than 100 yards from the vehicles, “Ouch”, the Better Half shouts while rubbing her foot, a broken FLIP FLOP beside her, “I just stubbed my toe on that root.” 

 

“I don’t think I can make it the rest of the way.”

 

“Why don’t you go back to the car, and I will go with the broker, I’ll take some pictures.”

 

Hubby and the broker continue.  The broker crosses the stream first.

 

Splash.  “Damn”  More splashing.  There’s hubby one foot in the stream the other in a nearby mud hole.  He finally makes it to the far bank.  One SNEAKER sopping wet the other encrusted in mud.

 

“No grip on these shoes, must have slipped on that moss covered rock.” 

 

Of course Mr. Macho will not let this deter him.  “I’m OK, let’s move on.”

 

The pair–one squishing along–continue onward, climb the bigger hill, round the bend and “Oh my look at that view.  I wish my wife could see this.”

 

“I’ll take some pictures”, as he fumbles for his camera, “Damn, I must have forgot it.”

 

Both head back to Mrs. and the vehicles.  “Honey you should have seen that view, It’s just what we are looking for.”

 

Needless to say, no transaction took place.  Both decision makers had a bad experience.  More importantly both did not see the entire property and could not agree to purchase.

 

When looking at land bring a good pair of work boots or hiking boots; preferably a pair that has been “broken in”.  The traditional Bean Boot with the rubber bottoms and leather tops is a good choice.  Wear your regular, comfortable shoes on the ride over and change into your walking boots for the showing.

 

In the winter, warmth and snow need to be addressed.  Insulated, waterproof pac-boots with a removable felt liner are the best.  For deep snow bring your snowshoes, a good broker will have a loaner pair or two if you don’t own this specialty item.  Bottom line is be prepared to walk in the woods and take the season into account.

 

Several years later Hubby drives by the property on a shortcut to work.  There’s a driveway located nearly the route he and the broker took during the showing.  He decides to check it out thinking “they won’t mind.”

 

He turns off the main road, climbs the short grade, drops down to the stream–which now crosses under a culvert, up the bigger hill, round the bend and there is a beautiful log cabin with a day-light basement overlooking that incredible view.  He could hardly turn away, he was so inspired.  Finally, he turned around and headed out muttering to himself “this could have been mine for a pair of boots”.   

COMING SOON

Thursday, February 12th, 2009

Keep a sharp eye on our website and/or postings under this category for new land inventory this spring in Cornville and Dexter, Maine. 

 

Our most recent listed property is the 49 acres in Jackson.  Check out the Wilderness website under BLOGROLL for more information regarding this property.  

 

 

WHAT INFLUENCES LAND PRICES

Thursday, February 12th, 2009

“What does an acre of land go for these days?”  This is a common question often posed to real estate brokers.  It all depends where it is located; an acre of land in the wild back country of northern Maine will be far less than an acre of land on busy Route 1 in Kittery.  Location has a big influence on how land is priced.

 

Water has a big impact on land values.  A 45 acre tract of land with a stream or brook running through it will have a higher value than a comparable sized parcel with no waterfront.  River frontage adds more value, as does lakefront and ocean frontage.  A particular lake or river that is desirable by the public will add even more value.  A two acre lot on Moosehead Lake will be more valuable than two acres on Mud Pond.

 

A view is another resource based feature that can add substantial value to land.  The more spectacular the view, the higher the value.  Fields, especially those that are maintained on a regular basis, are also a value added resource.   

 

Amenities such as frontage on a publicly maintained road, availability of power & phone, a road to the property, the amount of road frontage, high ground vs. low ground all affect land values. 

 

Seller motivation, competition among buyers, the availability of financing, seller and buyer expectations are some external influences that affect land values.

 

Good, experienced sellers will consider the amenities of a particular land parcel, its location and any external factors and price it accordingly so that it sells in a timely manner.  As a buyer, if your expectations are met for a properly priced property and you can afford the price tag, then it is fair to both parties.    

PROJECT UPDATE

Thursday, February 12th, 2009

In November of 2007, Burnt Jacket, LLC received approval from the Land Use Regulation Commission to rezone approximately 270 acres of its holdings in Beaver Cove to Residential Development.  A subdivision application was submitted in January, 2008 with a final revision in October, 2008.  The plan is for 31 lots comprised of 15 shorefront and 16 woodland parcels.  Also included are 4 common lots and two common greens. 

 

Keep a look out for future posts regarding updates on the project and new properties for sale.

BENEFITS OF LAND OWNERSHIP

Thursday, February 12th, 2009

“Land—no one can make it”.  We all have heard that old adage.  It basically implies that land is a finite resource that is in continual demand, especially as the world population keeps growing.  Keep it in mind as you read this post.

 

As an investment, land is a good place to park some of your hard earned cash for the long term.  Over time, land increases in value; it just does not do so in a predictable manner like a cash savings account earning interest.  How many times have you heard someone say, “Back 20 years ago, I could have bought that 20 acres for…” and it is always for a sum much lower than current prices.

 

Land in Maine is currently valued significantly lower than land south of its borders.  Remember also that Maine is within a 10 hour drive of nearly a quarter of this nation’s population—that’s roughly 75,000,000 people.  These are people that are used to those higher values.  Don’t forget the old adage mentioned above and you can see the potential for a huge demand for Maine land.  Higher demand for a finite resource translates to higher values—a good investment over time.

 

Unlike most other investments, land can be used as it grows in value.  You can build on it, grow a garden, park a camper trailer, pitch a tent.  Larger parcels can be farmed, hunted on, and logged.  Trails can be made for ATV use, cross country skiing and hiking.  The uses are limited only by your imagination.

 

Next time you browse through our website, think about the advantages of owning land.  It will be one purchase that will give you enjoyment as well as a good return on your dollar.