Jim Valentine on Real Estate
Most people are familiar with residential real estate, but there are many other niche areas of the business that arise and need servicing. To work in such a niche area requires specialized knowledge, training and understanding that a realtor must have to properly work in that arena.
Much like a doctor, CPA, or lawyer, all can do the general practice items, i.e. — selling a residential property, but when it comes to the specialized areas one should deal with a specialist.
One area that many agents try to work in without property knowledge is vacant land. There are many aspects of land transactions that need to be considered to properly serve the customer. They range from floodplain matters, survey issues, access, zoning, and soils to deed restrictions and governmental restrictions. To make sure you can utilize the land in the way you want and improve it within your planned/hoped-for budget you should deal with a land specialist.
Many agents encounter water rights along the way as they sell residential real estate. It can be included in one way or another with the property, but a proper understanding as to the potential uses and benefit of owning that water aren’t always understood or explained. Some areas have been so developed that the water rights associated with the property can’t be delivered, speaking of surface water rights. Having a domestic well allows you to have up to 2-acre feet of water to use annually, but there are limits in the use of that water, domestic use only. Can you drill a domestic well if you have a piece of property in Nevada? In most cases, yes, but not always.
More on water, one must know the status of the water rights. Underground water rights that have not been used for five years or more are subject to forfeiture. Not automatic, but subject to it. If you are counting on the water for your intended use then you better get a good understanding of the state’s position on the water you are buying. Is the water encumbered? It could be encumbered separately from the rest of the property. In Nevada water is real property and can be used to generate or complete a 1031 Exchange. If you are dealing with water get a specialist or seek counsel from a water rights attorney or engineer.
BIA Allotment properties are properties held in trust by the U.S. government on behalf of their Native American owners. They have a mixed status of federal protection while being private property. Dealing with allotment properties requires very specialized knowledge that few agents have. Be careful for you are playing in a different legal arena there.
Commercial and industrial property is quite common, but is actually another area of specialization. There are numerous excellent commercial/industrial agents in Northern Nevada, use them. Don’t try to give your nephew home seller a chance if you don’t have the knowledge to guide him. This niche has its own vocabulary and standards of practice.
Be advised that business opportunity sales require a business broker license from the state of Nevada. Agents can sell businesses if they sell the real estate as well, but if you are buying a business you should deal with a business broker. The business of a ranch or farm is another matter. They are complex as they involve knowing the assorted real estate components including the ever vital water rights, as well as crops, livestock, operations, pests, varmints, weeds, and so, so much more. It is a fun and challenging real estate niche, but very few are properly trained and knowledgeable to properly serve their customer in that arena. Get a ranch broker for maximum exposure and protection.
When an agent works outside of their area of expertise they open themselves to being sanctioned with an ethics violation by the Board of Realtors and/or being sued by a party if they adversely affected them. You can always engage the services of a good attorney that is knowledgeable in the area that you are working in, i.e.- water rights, commercial leasing, Indian law, ranching, etc.
If you are dealing in esoteric arenas invest a little time to find the right professional to help you, and maybe a little money to find a complimentary professional to help them, i.e.- attorney or CPA. Know your rights and consequences at all times.
You don’t need to be educated in each area of real estate that you endeavor into, you just need to find the right agent to serve and protect you.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. Email email@example.com.