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Understanding The Challenges & Solutions For Proper Land Resource Valuation

Whether you’re the owner of Colorado mountain property for sale, or you’re interested in buying recreational land for sale in Colorado, there are two major challenges that face proper land resource valuation – and may get in the way of ensuring a fair deal for all involved parties. In this guide from Colorado Mountain Realty – Mossy Oak Properties, we’ll discuss both the challenges and their solutions. Let’s get started.

Challenge #1 – Comparable Sales Are Not Always Truly Comparable

Whether you’re an owner of land interested in leasing rights to extract resources from your ranch property for sale in Colorado, or you want to sell the land outright to a new buyer, one challenge is that comparable sales are very difficult with land.

Comparing sales data between plots of land that look similar may seem intuitive, but land resource valuation is extremely complex. It depends on a lot of factors like forecasted revenue for the future, commodity sale price, availability of the resources, operational costs, capital investment, and more.

This means land “flippers” can sometimes take advantage of this – buying land at a great price compared to other pieces of “similar” property, but then selling the land back to an energy company for 10x the purchase price. Landowners with land for sale in Colorado can miss out on a lot of money if this happens.

Solution #1 – Work With Experts To Create A More Transparent Marketplace

The solution to this challenge is to work with land experts and experienced agents to truly understand the full economic value of the land’s resources – using tools like LandGate specialist land experts who can look beyond comparable sales and determine the true valuation of the land. This simplifies things for buyers, sellers, and agents alike.

Challenge #2 – Buyers Are Specialized & Transactions Can Be Very Complex

Putting up ranch property for sale in Colorado can be very difficult, particularly if a land owner is not looking to just sell the property outright in full, but wishes to negotiate a sale or lease of different parts of the land containing each resource like oil, gas, and minerals.

This complicates the process of selling and transferring the property, or negotiating leasing and other elements of the transaction, since multiple buyers, middlemen, lawyers, and other individuals will be involved.

Solution #2 – Involve Experts In The Negotiation Process

The solution to this challenge is to ensure agents work with experts like lawyers and land resource experts who can understand the common negotiation strategies for land resources. Agents need experts who can assist them with land valuation, title, terms, and closing – which ensures a fair deal for everyone involved.

Again, working with a company like LandGate can be helpful, since this is one of the leading marketplaces for oil and gas, solar, mineral, and wind developers – and can help property owners value their land and connect with buyers who are interested in the resources available in land for sale in Colorado.

Contact Colorado Mountain Realty – Mossy Oak Properties For The Help You Need

Whether you are interested in Colorado mountain property for sale, or are interested in selling your own property, our team is here for you. As experienced outdoorsmen and local land experts in Colorado, we can make sure you get a fair deal. Whether you have land for sale in Colorado or are interested in buying your own slice of paradise, you can trust us to advise you through the entire process. Contact us online or give us a call at