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Finding Your Niche: Buying and Selling Land in New Mexico
January 10, 2022

Finding Your Niche: Buying and Selling Land in New Mexico

by The CE Shop Team

The Future of Vacant Land in New Mexico Is Hot

Entering a new year feels like a much-needed fresh start, and finding a new niche market to enter can rejuvenate your career while expanding your real estate business. There are a variety of niches from which to choose, but why not start from the ground up? New Mexico is often missed in state rankings and national reports, but the Land of Enrichment earned its nickname rightfully. It’s one of the cheapest states in the country to buy land — and savvy buyers are taking notice. 

Average Acre Land Costs U.S. Map
Source: Zippia.com

Land sales have increased year-over-year. In 2019, only 28 land sales were made. In 2020, that figure rose to 69, which is an increase of nearly 150%. By mid-August 2021, 57 land sales were recorded. The average price per acre for land in New Mexico is $1,931, which hasn’t increased in value over the past two years.  Buying and selling land will remain a hot market in New Mexico in 2022, and savvy real estate agents can reap the benefits for years to come. 

After all, a shortage of inventory, rising home prices, and low-interest rates are pushing residents to venture onto rural land to build their homes.

“When I ask why they pick this area, they all say about the same thing — they want to get out of the big city,” said Stacie Ewing, the Broker-Owner of American West Ranches based in Eagle Nest, in an interview with Santa Fe New Mexican. “They say they are worried about where it will go in the future.”

As New Mexicans seek to escape the problems faced by living in cities and urban areas, the price per acre for land and demand will continue to rise. If you’re interested in entering this niche market, our tips can help you get started.

Earning Your New Mexico Real Estate License

If you're already licensed in New Mexico, great! But if you're not, you'll need to hold a New Mexico real estate license to conduct the sale and purchase of land. Some of your education may carry over, but there are state-specific licensing requirements that you'll need to meet. For more information on real estate license reciprocity, check out our guide

Understand Who Your Audience Is

Selling vacant land presents different challenges compared to selling a home. Typically, a homebuyer is looking for a property in a certain price range that meets their needs. However, when selling land, an agent must evaluate what the buyer’s intended use of the lot is to find the most suitable plot. 

Creating a buyer profile is crucial to your success and ultimately the sale of vacant land. Strive to find answers to the following questions to help the process run smoothly:

  • What is the property you are trying to sell? 
  • Is the land developed? 
  • Where is it located, and what are the environmental conditions? 
  • Would the ideal buyer want to build a new home here? 
  • Are they a developer looking to build a commercial property? 
  • Or are they looking to use the land for farming, raising animals, or recreational purposes?
  • How does lending typically differ for raw land, unimproved land, and improved land?

Once you’ve identified who your ideal buyer is based on what the lot has to offer, create a marketing plan that caters to them and their intended use. 

Dial-in Your Marketing Strategy

Now that you’ve defined your audience, you can spend your time and money on the right channels that will generate the most leads for your business. Instead of trying every lead-generating tool, focus on four prospecting pillars based on your audience and location. 

1. Start by marketing your listings online to buyers looking for lots and vacant land. Most MLS sites feature already-built homes, but there are search filters that help interested buyers find vacant lots and land for sale. 

2. Beyond online leads, marketing your listings on social media tailored to developers, farmers, hunters, or entrepreneurs is a smart strategy to reach savvy buyers. 

3. Put some boots on the ground and place signs that tell the story of your listing and accurately depict the benefits it has to offer. 

4. When selling a home, it doesn’t make sense to market your listing to someone in the neighborhood, but in the market of land sales and acquisitions, speaking with a neighboring property owner is a great strategy. They may want extra land as a buffer for privacy, or they may simply want to own more land for ranching, leasing, or development opportunities — so don’t be afraid to reach out! 

Selling and buying land in New Mexico

Stay Connected and Keep Your Clients Informed

This tip may seem obvious, but real estate agents drop the ball all too often when it comes to staying connected with their clients. Adding a CRM into your arsenal of tools is a great way to keep your clients organized so you can better connect with them over time. Exchange contact information, then enter this information into your CRM and assure your client that you will reach out to them on a regular basis. 

Outside of the occasional check-in, consider how to stay top of mind for your clients. Perhaps you could start a newsletter that keeps your client base up-to-date on local news and market shifts. If you have someone who is actively seeking land or a vacant lot, consider texting them on a weekly or as-needed basis to share links to new listings. You can even check-in via text to gauge their interest without bogging down their voicemail. Just remember to balance being present with being annoying; no one likes to be bothered day-in and day-out. Establish communication expectations with each client, note their preferences in your CRM, and then reach out as agreed upon. 

Beyond sending a text, calling, or emailing, being available is the key to keeping clients and eventually making a sale. The life of a real estate agent goes beyond the typical business hours, and for those veterans in the industry, you know client questions can pop up at all hours of the day. 

Be prepared to answer questions at any time to show them your commitment and market insight, and you could be closing sizable vacant lot deals in the Land of Enrichment in no time.

Ready to Build Your Mountain West Empire With Real Estate Courses From The CE Shop?

Enroll in our Pre-Licensing program now to get your career started and begin connecting your neighbors with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything real estate-related in the Mountain West? Join the Mountain West Real Estate Facebook Group!

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