Texas FARM & RANCH | Summer 2020 by ICON.GLOBAL

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From the Publishers oF

Caesar Kleberg Wildlife researCh institute Provides teChniques to survey deer PoPulation imagine you Could have as many aCres as you Want in texas. What Would you do? bernie ueChtritz’s taKe on rural real estate Post Covid-19

Estrella Ranch DISPLAY UNTIL Sept 22, 2020

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Bernard “Bernie” Uechtritz on Rural Real Estate Post-COVID-19 By Farm & Ranch Staff

Photography by Gustav Schmiege

This led to a larger conversaSo, in light of the market turbulence our world faces now, Bernie sat tion about generational shifts in the perceived value of rural real estate. down with our team at Texas Farm “Younger generations are seeing value & Ranch to chat about his experiin rural real estate.” One growing ence in rural real estate and provide trend Uechtritz sees is the desire of his opinions on what’s to come after younger generations to purchase rural COVID-19. land. “It’s its own asset class. It’ll be According to Uechtritz, there is highly sought after,” he says. opportunity in every market. Bernie recently issued this stateFrom a financial standpoint, the ment to his clients: value of an acre of massive? 535,000 acres for “DFW and Texas have One growing trend farmland in the U.S. $725,000,000. many powerful econom- Uechtritz sees is the has grown from about But that’s what Bernie Uechtritz ic engines combined $1,000 in the late ‘60s desire of younger does. He takes situations that are com- with a grit, history and to over $3,000 in 2019 generations to plicated, even distressing, and makes backbone and resil(adjusted for inflation). ience like no other. We them possible. His approach has enpurchase rural land. While you may not remain the best place abled him to build Icon.Global, a real consider this “hyper estate firm responsible for the sale of to be in such times. We are the center growth”, which is the sort of thing hundreds of millions of dollars worth of the nation—strong, resourceful and many short-term focused investors entrepreneurial with opportunity at of property. It’s also led people from are looking for in today’s economy, it around the world to seek his guidance every turn and in every town; that’s is steady reliable growth. And younger why everyone wants to live here and on navigating real estate sales and people with an eye toward the future be Texans!” purchase. are drawn to that. n 2016, Bernie Uechtritz would be instrumental in orchestrating the largest sale of land in United States history—the W.T. Waggoner Ranch in northern Texas. It was a complicated deal, to say the least. Opinions differed, emotions were tense, and stakes were high. To most buyers and sellers in the world of rural real estate, it would be daunting to lead such a massive effort. How

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From a quality of life standpoint, rural land ownership offers cleaner air and stress-free social distancing. Two qualities that people will value more in a post-COVID-19 world. Other reasons for owning rural land are equally compelling. A ranch is a place to take your family away from the noise of city life. Rural retreat destinations and family compounds provide a unique environment not found in the suburbs. Uechtritz explains, “With suburban real estate, buyers generally select either A) a standard lot and home to construct from a large builder or B) a previously used home. Land size is limited, neighborhood and HOA restrictions apply, and the land is not capable of providing physical sustenance.” There’s nothing wrong with suburban real estate, that’s just the reality of the situation. With rural real estate, people get their own “patch of dirt,” space from neighbors and neighborhood regulations, and the potential to grow their own living. It’s non-conforming to lots and house models. But buyers and sellers beware— there are certain things that need to be considered before jumping into the deep end of rural real estate.

Advice for rural land buyers and sellers

Uechtritz suggests that for buyers or sellers of land, it’s imperative to find a broker with relevant experience. In residential and commercial real estate, you might be able to get away with a less experienced agent

because most of the industry is managed by large brokerage franchises. If an agent lacks experience, they’re backed by a franchise who has it. That’s not always the case in the wild west of ranch land brokerage, though. As a buyer, you need to be clear about what type of land you’re looking for and what you intend to do with it so you can pick a broker who specializes in that. As a seller, the same rule applies, pick a broker experienced with the type of land you are selling. There’s a vast range of property types and purposes. There are working dude ranches and there’s resort dude ranches. There’s cattle ranching and there’s dairy farming. Rivers run through some land while snakes slither through others. And snow beats upon land in Wyoming while the sun scorches land in Texas. Not all land is the same and not all brokers are the same. Pick one with relevant experience. And consider this—the average real estate agent believes real estate is about “location, location, location.” But buying land isn’t just about location, it’s also about transparency. According to Uetchtritz, “You need to recognize that the sale and purchase of land can be a highly emotional and complicated process. We’re talking about the largest investment most people will ever make in their lives. It’s easy for brokers who aren’t as emotionally engaged in the process to lose sight of that reality. So, as a buyer or seller, do your due diligence to answer the questions

‘what do I want?’ and ‘what’s it for?’ and find a trustworthy, transparent broker who knows how to find or sell land for you.” If younger generations continue to be drawn to rural land ownership, the number of brokers will no doubt increase. That gives buyers all the more reason to do their homework. And that homework, if done well, will lead buyers toward a listing agent who follows these golden nuggets of wisdom.

Rules from Bernie’s Experience with Rural Land

“You’re only as good as your next deal, not your last. “Get better at marketing and find your particular niche. “Sellers of farm and ranch land, more and more as we go forward, will place their trust in listing agents that know exactly who the ideal buyer for their land is and how to find the ideal buyer for their land.” Icon has prospered by specializing in a particular market niche—unique, complex, high-end properties. Uechtritz has seen many listing agents succeed by focusing on properties with water resources, and others by focusing on specific geographic location. Others, on conservation easements. Once you have a niche, there’s the challenge of reach. “Sellers will find great value in a broker with knowledge of their specific type of land. That perceived value compounds when a broker is also able to market outside their county, state, and even the United States. Reach is a precious resource.” FarmAndRanch.com

For a broker to develop niche knowledge and global reach, Bernie believes it’s key to “emulate successful brokers who have integrity”. These broker-to-broker relationships can benefit both parties in becoming more skilled at helping their clients.

Success in every market

Markets are unpredictable. It’s been said that the only people who can be wrong 100 percent of the

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time and keep their job are weathermen and economists. So, while many speculate about the future of real estate after COVID-19, there’s no way to know the future with certainty.

What we do know is this: ● ●

Younger people are migrating toward rural real estate. Using a broker with relevant experience to your needs will be a key success factor for buyers and sellers.

●

Listing agents with a niche and reach will enjoy the lion’s share of the market going forward.

“Success in every market is there for those that look for it and make it happen” Uechtritz tells his clients. Perhaps that’s good advice for the rest of us.

Photo credit Icon Global. Fox Canyon Ranch | Davis Mountains, Texas FarmAndRanch.com

ALCOA’S ALCOA’S SANDOW SANDOWLAKES LAKESRANCH RANCH

Listed Listedatat

$250M $250M

• •45 45miles milesfrom fromAustin, Austin,TX TX| 32,000± | 32,000±acres acres• •

HIGH HIGHINCOME INCOMEPRODUCING PRODUCING8,000± 8,000±ACRE ACREDEV. DEV. SANDOW SANDOWLAKES LAKESBUSINESS BUSINESSAND ANDINDUSTRIAL INDUSTRIALPARK PARK • •COMMERCIAL COMMERCIAL• •INDUSTRIAL INDUSTRIAL• •RESIDENTIAL RESIDENTIALMASTER MASTERPLAN PLAN• • • •EXISITING: EXISITING:GREEN GREENENERGY ENERGY• •TECH TECH& &DATA DATA• •INTERMODAL INTERMODAL• •SOLAR SOLAR• •

-EST. EST.$200 $200MILLION MILLIONLAND LANDVALUE VALUEALONE ALONE • •GROUND GROUND& &SURFACE SURFACEWATER WATERRIGHTS RIGHTS& &DEVELOPABLE DEVELOPABLELAND LAND• • 18 Volume 96 Texas Farm&Ranch

PECAN PECANPLANTATION PLANTATION- Premier - PremierDevelopment DevelopmentOpp. Opp. $27M $27M| 1,500± | 1,500±acres acres| Granbury, | Granbury,TXTX

364Lots Lots CC 364

307 307Lots Lots

494 494Lots Lots B B

• Offering • Offering consists consists ofof the the opportunity opportunity to:to:

- Develop - Develop upup toto 1,165 1,165 additional additional residential residential lots lots within within Pecan Pecan Plantation, Plantation, CONCEPTUAL CONCEPTUALSITE SITEPLAN PLAN located located in in a high a high growth growth area area ofof Texas. Texas. • 1,500± • 1,500± acres acres available available shown shown in in yellow yellow •• - Continue - Continue the the operation operation ofof a profitable a profitable major major pecan pecan orchard orchard

CFCF RANCH RANCH | 1.5 | 1.5 hrshrs Dallas Dallas 2,105± 2,105± acres acres | Paris, | Paris, TXTX (On (On The The Red Red River) River)

EXCLUSIVE EXCLUSIVE/ /PRIVATE PRIVATE/ /FAMILY FAMILYRETREATS RETREATS

FOX FOXCANYON CANYON $23.9M $23.9M| 7,700± | 7,700±acres acres| Davis | DavisMountains, Mountains,TXTX

FIVE FIVECREEKS CREEKS $13.5M $13.5M| 1,571± | 1,571±acres acres| Athens, | Athens,TXTX

CIRCLE CIRCLEJ&B J&B $9.95M $9.95M| 3,266± | 3,266±acres acres| Seymour, | Seymour,TXTX

7D7D $8.9M $8.9M| 2,554± | 2,554±acres acres| San | SanSaba, Saba,TXTX

BIG BIGCYPRESS CYPRESSBAYOU BAYOURIVER RIVER $3.6M $3.6M| 1,101± | 1,101±acres acres| Jefferson, | Jefferson,TXTX

SOLD SOLD ICON ICONGLOBAL GLOBAL- -AAMARKETING MARKETINGMACHINE MACHINE

$725M $725M

$32.5M $32.5M

$59.5M $59.5M

$21.5M $21.5M

$45M $45M

$17.136M $17.136M

$43.9M $43.9M

$16.562M $16.562M

$40M $40M

$13.85M $13.85M

$39.95M $39.95M

$13.5M $13.5M

$34.22M $34.22M

$11.95M $11.95M && COUNTING COUNTING

RANCH RANCH• •COMMERCIAL COMMERCIAL• •RESIDENTIAL RESIDENTIAL && APPRAISAL APPRAISAL I NI N FO FO @@ I CI C OO NN . G. G LO LO BA BA L L | | 2 1241 .48. 5 8 5 .54. 0 4 0 0 0 | | WW WW W.W. I CI C OO NN . G. G LO LO BA BA LL