KGCI: Real Estate on Air - Real Estate & Appraisals with Sterling Fryar, MAI.

Episode Date: May 16, 2024

I am one of your host, Hallie Beeler McCrory, icon agent with EXP Realty and host for Emmy nominated TV show, American Dream TV for the Dallas location. And I've got one of my favorite people on today. But quickly, I want to introduce my podcast partner and just one of my best friends, Casey Stiers, who's also an American Dream host. But she is for the Raleigh location. So she's in Raleigh, North Carolina. Everybody knows her as the downtown guru.

Good evening, Glenwood, you might know. So, yeah, we're super excited to have on one of my good friends, Sterling Friar. He's based out of San Angelo, Texas, where I work. And he's one of the top agents there. Everybody knows him for specifically Farm and Ranch and Broker of Sterling Property Group with Keller Williams. And he's also the president of our local association. San Angelo Association of Realtors.

What else? And he's also, he's got the MAI designation. So he's also an appraiser, which is super cool. So you know, he knows exactly what he's talking about. And just overall, super fun guy. I love hanging out with him. We did Dancing with the Stars and San Angelo together, a little spin-off of the TV show.

So that was super fun as well. Welcome Sterling. Awesome. Thank you for having me. Everybody. Yes. How to throw on the dancing. with the star. I know. I don't know if you can see it. It's my my crystal balls right here.

Yes, I love it. The little disco ball. So exciting. Yeah. So I wanted, I mean, certainly does all types of real estate, but I wanted to bring them on specifically for the farm and ranch stuff. We've got quite a bit of people on here, you know, who follow us that do farm and ranch and really, I mean, even just land in general, there's always lots and land to sell, especially in both Texas and North Carolina right now. And I know with North Carolina, our North Carolina following, it's going to be more farms there for sure.

But yeah, I mean, Sterling, I wanted to start off. And I like to start off the podcast a lot this way anyways, but just like a little bit of history with your journey into real estate, you know, how you got started, how you got into the business. Take it from there. So my back story is really I went to A&M and was. Gigum. Yeah, Giggum.

And I had no idea what I wanted to do. And my mom's got a good friend that's an appraiser, sophomore, junior year. She said, hey, I want you to go meet this lady. Went and had dinner with her. And she started explaining what exactly an appraiser does and the research process and all of the data and everything behind it. and it just it clicked and I said okay I'm going to go start looking at the different real estate classes and things like that at A&M and not just like the brokerage side of things and it was the first thing that I I just understood and you know other people were having problems and I don't why are

you all having problems it's the same as you know biochemistry to a doctor or whatever yeah it just I was like I this makes sense to me and so six months before I graduated I actually started working for an appraisal company and college station I'm now a partner in that firm and we do appraisals all over the state okay that's really interesting and that's actually a great place to get into real state I feel like too because Texas A&M has like it's the premier real estate research center like that's where our whole state gets all their their data from and so I feel like that was um I don't know I bet that was like really interesting and and uh you know set you up for success too absolutely I got I got lucky more than anything uh to be to be working

prior to graduation and then I've been with the company for 16 years uh in January so it's all I've ever done all I've ever known okay so have you always been doing like I got okay so I've known you for like four and a half years now, I would say since I've gotten into real estate. I actually met his wife prior to that because I was in pharmaceutical sales before I got into real estate and she was as well. We'd have the same route, you know, between San Angelo and Brownwood. That's a whole other story. But have you always been involved with appraisals or was it just as of late that you've got the MAI? No, so I started I started in appraisal. Okay. And then migrated over to brokeries. And I still to this day, it's not 50-50 anymore, but, you know, we're running the company more with my partners.

I'm doing a lot more sales. But I still probably do, you know, 75 to 80 appraisals a year. Yeah. And it's not, you know, not residential. It's farm and ranch and commercial. So we deal with a lot of unique properties. Yeah. Yeah.

Well, and that just makes you that much better at the sales, though. It's like, I'm already out here. why not, you know, be the person to sell it. That's kind of the idea. Yeah. You know, trying to convey your value to your sellers and buyers and saying, hey, not many people have a broker's license and an MAI. Like, I'm hitting this from two different sides. Yes.

Yeah. So far it's worked well. So, but not all appraisers have their MAI, correct? No. No. It is a designation. it took me four years to go through the process. There's extra classes.

You have to write a report, defend the report. When I got mine, and I don't even remember when it was, but I think there were only 12,000 in the nation that have an MAI. So it's a highly coveted, highly respected designation. Yes, I love it. That's awesome. Okay, so when did you actually get into? sales as well.

I don't remember. Heavy, say, 10 years ago. Okay. Okay. So you were like plus or minus. Yeah. Okay.

So you were, you were a good ways in. And then when did you move to San Angelo? This is just me being curious. I'm sure. No, that's fair. I was born and raised here.

Okay. So I went, I grew up outside of San Angelo, went to Wall, Wall America. Yeah. And, left, met my wife in college station. She had an opportunity to take a job here in San Angelo. I was like,

let's go home. Love it. I love it. That's awesome. Well, I'm glad you guys were in San Angelo and that I got to meet you guys and work with y'all. And then two different industries, which is crazy. But I guess Jessica just migrated over to sales. And she's killing it this year already. I think she is. Yes. Like five or six closings and year one and a half. Like, it's awesome. Yes. It's so fun that you guys get to do that together too. Yeah, it is.

Sometimes. Sometimes I can relate to that with Colin. Yeah. I can't too. Actually. Yeah. Yeah. So Casey and her spouse,

Adam, they own a bunch of the bars in downtown, Raleigh. So on that end, well, I guess in like the real estate end, too. Yeah, Because we do live together and we have several rentals together.

And we're very, yeah, the only thing we have separate is to car dealership in my real estate business. But I guess he's kind of in my real estate business as well. So, yeah. That's super interesting. Do you, do you lease the bars out? Um, yes, currently. Yes. But we have the first ride of refusal on majority of them.

Got it. Yeah. He's had the very first night club on Glenwood. And then he had a dip bar and a convenience store. He got in in the late 90s. So his red dirt cheap. And he captured the first writer refusal on all of them and signed like 20 year leases and stuff. And now he just keeps getting extensions. That's awesome. Yeah. And then it's just grown from there. The last one we signed, she's like, hey, they kind of reached out to us and her nephew I'd work with or her son I'd work with a lot in the real estate world so that's how we got that one and then the other one it turned out I'd went to

college with that guy and he was like hey do you guys want it? I was like sure so and then we open it and then usually within a few years somebody wants to buy us out and they buy us out take over the lease and then we get them to cover the lease and then we make money on top of that So start another one.

Okay, so I want to focus, focus in on the farm and ranch stuff. So I'm sure just being in the areas that all of us are in, we've got people, well, I know we do, you know, that are interested in farm and ranch. Sterling, can you give those people, like if someone wanted to get into farm and ranch, real estate specifically, do you have any, like, how do you have any, like, hacks, tips or tricks, you know, our namesake of the podcast, around how they would do that. Like, do you think people need to have a background in, in agriculture or like, like, should they be taking some sort of like classes or learning that? Or do you think it's just mainly, like, that has to be kind of what you're born into? No, not necessarily. I'm a big proponent of education. So if a new agent or somebody wanted to switch fields, the first thing I would

would say is go take as many classes as you possibly can to familiarize yourself with the intricacies of that industry. I mean, we can be talking about any industry and, you know, everybody started from scratch somewhere. And, you know, I grew up on a ranch. And so it maybe was a little easier for me to understand what to look for. But those that don't have that background, you have to go get that information. And, you know, the first step is inundating yourself with that information and learning what to look for. Yeah. Yeah, for sure. Well, and there's a lot of like different designations and whatnot for land sales. But I feel like, you know, there's also, I haven't looked into it myself, but I feel like there's also like there's got to be classes online about like,

you know, types of soil or, um, what best use of land is because a lot of, I feel like a lot of the farm and ranch world is so much commercial base because you run businesses off of it. Like you can lease the land or you can have a horse operation. But I feel like there's also kind of a commercial aspect in there. Do you think kind of learning more of the commercial is beneficial for farming and ranch or not necessary? I think it's applicable.

but you're also going to do that with homes. And so on my notes here, the first thing that I tell people, and when you're starting evaluation of a property, you got to find the highest and best use. Just like you said, you know, what is your buyer type?

Is it a horse property? Is it a farm? Is it a ranch? Is it, you know, exotics? Is it a high game, you know,

there's just so many different property types that you have to hone in on the highest and best use of that property. And that is going to narrow down your buyer pool and figure out who to market that to. Yeah. Okay. So I guess sometimes you'll walk into a listing where they're already running the highest and best use. But what do you personally do when it might be a situation? I don't know.

Like I feel like there's a lot of old like families that have owned this. this property, let's say just, you know, a subject property for, they've owned it for decades and decades. And, you know, it's been passed on. And now they might be land rich, but cash score. And so maybe they're not running something on the land. Like, what do you do to help determine highest and best use? So there's four components of highest and best use physically possible, legally permissible, financially feasible and maximally productive.

Physically, it's land, so it can be pretty much anything wide open. And you've got to go step by step. Legally, is it zoned? Are there deed restrictions? Any issues with it that would not allow development or whatever? Financially feasible, is it based on the price? Is it financially feasible to run cows, sheep, goats, whatever? or is it to develop?

And maxly productive, it's kind of self-explanatory. But it, it's hard to paint with a broad brush because if you're outside of the hill country in Fredericksburg, you know, 120 acres may be priced at, you know,

$25,000, $30,000 an acre. And that is for development. That's, you're not going to run cows at $30,000 an acre. They're going to buy it, cut it up, sell it off. And so it just, each one of those things is going to figure out what comps to use because that's ultimately what we're getting at is how do I value this for somebody? And if it's out in the middle of nowhere with no developmental potential, you're probably looking at a lower end, you know, a comp that has, you know, cattle uses or whatever, right?

It's not going to, those aren't the same property types. Okay. Okay. And like if I guess if someone didn't You know just know that off the top of their hand they could partner with someone like you to To be you know like a guiding mentor and co-list with them on and you know guide them on how to do this like that's what I've done in the past one Because I I only know Surface level like agriculture farm and ranch stuff, but I know how to market

So I've taken on ranch listings, but I'll partner with you know our farm and ranch broker on on, like to guide me on those types of that type of knowledge, I guess. Absolutely. Because it definitely is like, that's what it revolves all around. And, and even just, even for marketing too, like having someone help you with that side of the knowledge really helps with marketing as well. So I would say that could probably be a little hack in there, like partner with someone to help, you know, mentor. A mentor will go a long ways. think of your first property type that you sold it, your first house.

Did you know how to sell a house the first one? No, you had somebody to help you along with the process. And it's the same commercial and farming ranch. Just make sure you have a good mentor. Yes, absolutely. And got to fulfill that NAR rule about, you know. Competency. Yes.

Yep, absolutely. So I guess on that note, you know, what do you have like, any, I guess like your favorite tools that you use? Like I know land ID is a big one. Big time. So I don't know. Could you talk about your favorite tools that you use? MapRite, land ID is invaluable, in my opinion.

It's better than Onyx. It's better than some of the others. They have really spent a lot of money to update the platform and it's super useful. Yes. You know, obviously all of your appraisal districts, it's not the same. I mean, you're going to have to go find. It could be 10 parcels. That's where land ID comes in because it links up with the counties. Lands of Texas and lands of America, granted, you have to pay for it, but that gives you access to the comps that maybe it's not on

MLS. You know, a lot of farm and ranch brokers aren't realtors. And so, and you don't have to be. But they you know, there's land broker co-op, lands of Texas, lands of America. And those are my main ones. Yeah. So, and from what I understand, so you can get comps from there, but with farm and ranch, a lot of times you're pulling comps from your lenders, right? Like your capital farm? No.

Okay. No. Well, they have in-house appraisers that you can communicate with and they'll sometimes share data with you. I don't think a lender's legally. allowed to disclose a sales price. But, uh, okay, yes. Yeah.

But, but as far as comps go, like, you know, they have in-house people that, that, you know, capital farm doesn't contract me to do an appraisal because they have somebody in house. Right. Okay. I have capital farm appraisers reach out to me for comp help and we share data. Okay. Okay.

Okay. So lands of Texas is, or lands.com is really going to be your, your best source for comps then. Yes, and I don't know how the service is in different areas, different states, but it's, it's, I mean, it's not bad by any means. Yeah. And going back to land ID too, like, so for residential, I've always used like land glide or I know a lot of people use the onyx. Onyx is a hunting app, but it actually like, it's almost the same thing as land glide in the sense of you can pull up a map and see who owns which parcel. If I'm driving down a road, I can point my phone to a house and it'll like lock itself on that parcel. And I can pull all the appraisal data info up like super quick.

Like it's almost easier than just going to, you know, in our sake for St. Angelo, Tomgreencad.com and then typing in the address. It's almost just quicker to use those resources in my opinion. And I know Onyx has a free version. Landglyde doesn't. but I think land glide's worth it. But so land ID, which used to be map right, that's why we're saying land ID map right. It does the same thing, but you can actually pull up like where water wells are.

You can pull up like the flood map on there and see where it is in the flood map. You can see like gas pipelines. You can see utility lines. It just has more to it than just when like. It has the stuff you need for for farm and ranch like minerals. Not necessarily like the stuff you need every day for residential sales, I would say. Exactly. And you can run soil maps.

You can do topography maps, aerial maps, street maps. I mean, it's really great. And you can create a link to embed in your listings that is an interactive map that is super useful. You can toggle the layers of, you know, the water. water wells because it's not always 100% accurate, but you can, you can do it for your own personal information for, you know, having discussions with a buyer or seller, but you can turn that off, you know, as a public facing, uh, map. Yes, yes. Yeah. Yeah. And even like, it's not always easy to find a ranch either. So that's like a, another helpful tool just like being able to find it. Like,

it's like dropping a pin almost. Exactly. So with that being said, how does, how does farm and ranch marketing differ from residential marketing, do you think? I mean, basically the same components, but again, it's tailoring to that farm and ranch side. You know, water is obviously the big thing. Does it have public water, rural water, water well. You know, what does that water well produce? I mean, you just got to go through each of the characteristics of the land, and that is going to create your marketing for you. And so, you know, I'm sorry, I keep going back to the house analogy, but.

No, that's what a lot of people on here are used to. Yeah. So, I mean, does the house have granite countertops or does it have, sorry, I've been out of the game for a while for Mike or whatever? You know, what upgrades does that house have that constitutes a higher price or or downgrades? It all translates into marketing and pricing and everything. Yeah, absolutely. So do you guys focus like, you know, focus on marketing on like lands.com still? Or is that more for like if you want to, if a buyer is trying to find an.

agent. No, it's we primarily market on lands and, you know, that's, that's the big one because that's where, you know, if you do a Google search, because CoStar owns lands now, that they're going to, they paid the money. So it is going to the top of the search list. So it's very expensive, but that's where everybody's going. And so you have to use that platform. Yeah, definitely. And then, I guess like land broker too and then I've like I think I've seen horse properties.net I mean that'll be specific to horse properties obviously

but it seems like there's a couple niche ones too. Yeah and I mean horse property is pretty good. I sold two or three deals on it and so nothing bad to say about it. It's just smaller. Yeah. Do you think with farm and ranch like I mean someone could argue

farm and ranch is a niche in itself, but do you think it's better to niche in to like horse properties or or like exotic ranch, exotic game ranches, or is it better to do them all? Or does it just depend on kind of what market you're in? That's going to get the, it depends. You know, there's successful horse brokers or horse property brokers and they're in that world so they know what to look for. My business partner, Jake Powers, is in the exotics world. And so he knows what to look for and what will and won't work where I have no clue.

And so I lean on him for that information. Yeah, he's a perfect example. Yeah. So it depends. It depends on the person. And it goes back to competency. I mean, you better be competent in what you're doing. Yeah.

So Casey could like partner up with some. If she had someone come to her and say, I want a farm in North Carolina, she could partner up with, you know, unless Casey, do you know much about farms in North Carolina? Um, a few. Coming back to this one house I sold and it had peacocks and ducks and be in a chicken house. And we're not talking on a full farm. We're talking on less than an acre of land is what we're talking. And all that on less than acre. I had to dig into how much a peacock cost.

How much does a chicken house cost? How much? And I wish I would have had somebody who's getting farm it. It would have saved me about a day's worth of research. And I know that it doesn't sound like a lot, but a day is a lot in a realtor's world. But they want the two peacocks, the ducks, the chickens, the hen houses. They bought it all. So I know you guys are talking much bigger.

that's where my mind's going every time you're telling. The other one, it was, I saw the house in the middle of a farm. They didn't own the farm around it. They just owned the land that the house set them. And it did not have a drive while you going into it. You had to drive through the field to get to the tobacco field to get to the house. And it was an easement dating back to 1948. So, yeah, the closest things I've came to farm.

Yeah. And even, I mean, that even like kind of reminds me too, like how much you rely on your attorney partners too for farm and ranch, I feel like because because of all like easements and different mineral rights or water rights, stuff like that. I don't know. Would you say that's like a good trick or hack is having good attorney partners in the farm and ranch world? me or her. Oh, Sterling. Yes. Sorry. No, actually that was, that was actually one of the things that a major hack that maybe not everybody knows about is, you know, for your mineral rights, hire a landman. And there's many all across the state, you know, if anybody needs a recommendation, we can provide those. But those people go in to courthouses and go all the way back to the beginning of records. and basically figure out a chain of title for the minerals. Because if a seller says, I own 50%, and, you know, they've been told that.

They've never run a title search. That landman will, you know, pay dividends because there's times when, hey, you don't have minerals. You may say it, but or you have more, right? So definitely reach out to a landman. They are worth their weight in gold. So how is that, like, why wouldn't that be the title company's job? Or is it just not as accurate? Well, the title companies do not run title on minerals.

It's the surface on the. Okay. So it will pick up the easement, should pick up the easements, all of the different things for the, for the surface, but the mineral, and it says it in there that they do not warrant the title on minerals. Okay. That's really interesting. So is a landman an attorney? No. They just happen to be experts at that.

Yeah, there are mineral attorneys that do run title searches, but a landman, that is their job. And I mean, it's a, I've got a friend that's a landman and she is, I mean, it'll take a week in the courthouse going all the way back to 19, you know, 1800s or whatever. I mean, she's told me about having, you know, been able to find that the wagons can, conveyed and the chickens conveyed and then the minerals were over here. Like it goes all the way back. It's, I've done it once. Uh, I helped a landman clear some issues. And I had to go back to 19.

Oh, four, I believe is as far back as we could go. And, uh, you want to talk about handwriting back then? Cause I mean, it's all cursive. Percive. The lady between 1907 and 1910 really irritated me.

Because I couldn't read her handwriting or, I'm assuming it's a... Yeah, that one, 1948, that deed. It was like, that easement was like, holy cow, you guys did easements back in the day. I didn't even realize this is not a new thing. So... I know you'd think so with how legal everything's gone, but we had to have something back then. Okay, so I know you made some notes.

Tell us a little bit or like, you know, what are your other hacks or tricks that you had for us, clearly? So I touched on highest and best to use. Developmental potential is a big one for those different property types that are going to be more expensive for cutting up and selling versus just regular farm and ranch. Definitely check your legal descriptions. What is on the appraisal districts in Texas are not always accurate and they are, you know, mostly shortened for simplicity. So when you have a. survey, the legal description should be in the bottom of right hand, left hand corner, and it shows the full legal. Check your title policy whenever you get it. Make sure that your legals line up. Make sure you are selling the correct property.

Because it has happened that a title company has sold the wrong property in just the legal description. Wow. You know, definitely look at your floodplain, your floodway maps, you know, You can't build something there. I mean, you could, but you have to build it up out of it. Floodway, you can't build in it at all. And, oh, and government programs.

Okay, yeah. So in farming ranch, there's CRP. There's a bunch of them. So I'm going to name two of them, Equip and CRP. And I had to learn the hard way how to deal with the CRP. And this was 10 years ago, right around the time. And I didn't understand what it was. I didn't grow up farming.

So it was a learning curve. It's a government-backed program to preserve the land, basically. They pay you not to plant there, but also a solar ranch last year that had a CRP program for fences because it had a big creek running through it, and they wanted to keep cows out of the creek. And so they actually paid to fence off the creek down the middle of this property. And, I mean, it was, I think it was $5,000. a year. And I mean, that's a multi-year dealing for for farms and ranches. I mean, that pays for a lot.

Yeah. Yeah. Wow. What does CRP stand for? Or do you know? I don't know. It's just a government guy. Well, yeah. I don't know off top of my head. So, but like you can, because I think of like Robin Tidwell's husband, like there's actually people you can. and have consult you on like, hey, you should apply for this government program or, yes, or this program. Where are those people called? I only, I mean, like consultants. Yeah, they're just consultants.

But that's a little outside of my scope. Okay. You know, if somebody asked me that, I would say, hey, I would need time to research that to make sure that I send you somebody that does a good job. Okay. Okay. Cool. So I guess again for like those people that are wanting to get into to farm and ranch,

do you have any other good resources for them to look into? Yep. The RLI, Realtor Land Institute, they have a lot of classes. You can get a designation and accredited land consultant ALC. ER has multiple farm and ranch classes. There's valuation classes. I mean, there's a lot of resources out there that, again, I go back and encourage them to reach out to those services and take those classes. And, you know, and also for networking.

You're going to meet people that are like-minded and want to do the exact same thing and want to learn and or have been in the business a long time. And, you know, it might open the doors to mentorship or, you know, a business opportunity down the road. Yeah. I love it. here. Yep. That's, we were just talking about that on the last podcast, like putting yourself in situations where you can't, like if you want a mentor, like go put yourself in situations where you can network and, you know, possibly run into the perfect person. Well, and, and you're going to meet people that you can call that maybe I'm always said,

let's collaborate, let's not compete. And so it's, you know, if I have a question and to this day, I have people that I call and say, man, it's been a while since I've run across this or I've never run across this. How do you think we should address this? And I mean, every single one of them, like we have, and it opens up a conversation and, you know, it doesn't have to be somebody in your backyard. It can be anybody that you trust. And, you know, you just kind of share information, bounce off of each other and, you know, we're all better because of it. Yes. Yeah.

So are there like any big trends that you see right now in 2024 or coming up, you know, in the coming years for farm and ranch real estate? Well, right now, interest rates are killing us. Yes. I mean, that's that has seen. We've seen a slowdown in the farm and ranch sector because of that. We have cash buyers, but those that have to borrow. And even like the wealthy, wealthy people still like to borrow. money.

And, you know, that's, I've got a guide that he can write a check for basically anything that prefers to borrow the money, but at eight and a half, nine percent, and it just, it doesn't make sense. They can invest it ever, so, you know, somewhere else. And so that, that's put a big damper on the market. Yeah. And okay, so another one that I feel like I hear a lot about is, uh, people like flipping land going in and buying it cheap from somebody who, again, you know, might be someone who's land rich,

but cash poor can't maybe maintain the land. You know, these people will go in, buy the property cheap, clear whatever junk is on it and then divide it. Or there might not even be junk and they just, you know, happen to get it cheap and then divide it up and so smaller pieces, which I know a lot of people don't like, you know, that are in the area. So, like, Okay, so I didn't like it because, you know, with my background. And then, but when you talk to brokers and people in the area, there's a lot of people go into bat for these people because whenever they divide it into say, you know, it doesn't matter how many, 10 tracks, 12 tracks, but 20 tracks, it doesn't matter.

That's 20 potential people you're bringing into your economy. Yeah. And so one of the big arguments was, oh, you know, they're going to buy their groceries in Houston or Dallas or whatever, whenever they drive here. And that's just not the case. You know, you have locals that are seeing new people in their businesses because of that development. Yeah, because it might be like feed stores even. Exactly. Grocery store.

I mean, your restaurants. I mean, it brings in commerce to your economy. And so I've eased up on my. dislike for that yes yeah yeah well and you know I think it's it's better for if it's more people to be or I think it's better even if it's more people like if the land is better maintained I feel like that's better for everybody than just like someone having this large piece of land that they just let go is that fair to say or no I mean that's a big it depends it depends who you sell it to of course, but, you know, we as realtors are big proponents of private property rights and everything.

So you can dislike something all you want. It is their land. They can do whatever they want with it. Yes. Yeah. Well, and on the same, like, talk track of people who might be land rich, but cash poor, like a lot of people are, I mean, and this might have been a thing for a long time because we've got like wind turbines that come in and we'll pay people to. set up on their land or or the solar farms. I feel like another one I've been hearing about is like hydrogen plants.

Can you talk a little bit about all of us? I have a limited amount of knowledge on it and I, to a point where I don't even want to really say anything, I think it's a fascinating technology that they're talking about. There are concerns with water in the area. But I think it's a super interesting. technology as an alternative energy source. Yeah.

But I don't know enough about it to really comment. Yes. What about the wind turbines and solar farms? Yeah. Also just depends. So a lot of people ask, okay, you know, I've got a property X and the property next to me has the turbines. Is there a detriment in value?

Every single time it depends. You know, the comps, you have to do the research to find comp that in a perfect world you find two properties similar size similar characteristics one with one without you isolate the difference if there is one and there's your whatever in value up down whatever um you know i know i've sold multiple tracks with the turbines on it and if they're producing income it's a win for the buyer as long as they conveys um it's just it's person by person you know one person doesn't care and another person does right right okay but ultimately go go back to the data like that's yeah that's my big thing yeah gosh that's yeah really interesting to think about

um so and then with like oil have you sold any property like appraised properties that have like working oil you know businesses on them uh I don't know about businesses, but, you know, they're leased by oil and gas companies. Yeah. You know, and so the surface is leased. And so the oil company could go in and maintain their equipment, their pumps and, you know, et cetera. That's the biggest thing of when getting in Farmer Ranch or one of is understanding your surface versus mineral and making sure you know what the seller intends to do and what they intend to convey. because that's a really big mistake if you say, yeah, you know, it's going to convey everything.

And the seller's like, whoa, wait a minute. Like, no. So those are two different components of the real estate. And so just knowing the, you know, you have the surface and the physical use and then you have minerals, which are below. Right. And this is like stuff, you know, that you'd find in your education are these classes that you've mentioned. Yes. Correct. And so a partner of mine and I are actually actively working on writing a class for TR to teach. And, you know, it's very in the very early stages. But, you know, we've, you know, in all the stuff that we've gone to, all the conferences, you have a lot of people saying we don't have enough good quality classes. You know, you have the intro and all the stuff. But, you know, to really take a deep dive into these things and we're, that should roll out in the next few.

months. Yeah. Well, I feel like it's also because like you said, a lot of, well, I guess you said that ranch realtor or ranch agents don't have to be realtors. I mean, I guess it depends on your brokerage and whatnot too. But I've found that a lot of farm and ranch focused agents are not actually a part of national association of realtors. You're like one of the few. And this is just for like San Angelo area, I don't know. And this is out there. Yeah. So it's becoming more popular that now more agents are getting into, or ranch

agents are getting into joining MLSs, just for like extra marketing, of course, because that pushes out to all these different, you know, syndications and, and websites, like like land.com. So I don't know. Do you feel like that's a fact? I feel like the trend there is because the brokerages finally acknowledged that they're not just selling houses. That, you know, we, you know, there are different designations and different, you know, EXP has it, KW has it, KW has it, KW has it, KW has it.

I mean, everybody has a land division now. You know, just like they had a commercial division and everything. They finally woke up and said, oh, yeah, you know, but they are realtor members, not, you know, not just agents, which is totally fine. You don't have to be a realtor to sell real estate. You just have to have a real estate license. Right, right. Yeah, I think it's good, though, because, you know,

everybody's pushing for more education and with this settlement, you know, there's going to be a lot more communication and there's, that's never a bad thing, just more transparency and everybody being on the same page. So I feel like that's a good thing. Yes. you're like yes especially as the president of yeah as i'm not really i don't have a comment on it yet i think we're going to know a whole lot more in the next 30 45 days yeah there's yeah it's hard it's hard to really say because well we one the judge even hasn't even like you know proposed

on it but yeah um yeah so we'll see it'll be interesting to hear for sure um any other like resources that you think or well, I guess we've talked about our farm and ranch resources, but maybe you could speak to maybe agents who are wanting to get an appraisal license as well. Okay. Like what like it's definitely not going to be for everybody like but if someone was interested in it, you know, what would be like do you think they should go and talk to an appraiser or? Yeah, definitely talk to an appraiser. There's the appraisal institute. org, I believe, you know, each state has different rules and regs to get your appraisal license.

It's tough. And it's not, it's not like the broker license or sales agent license. You know, you can knock it out in a couple months. No, I mean, there's mentorship. There's, you know, you got to log hours. You have to work. You have to, I mean, do all the things. It's very tough.

And the biggest gripe is that that I hear from new agents is I can't find a sponsor. You know, who, you know, if I have to have a sponsor, I can't find a sponsor. And the Appraisal Institute is, I don't know if they rolled it out yet, but they were working on a mentorship program where, you know, you don't have to have basically the local support. You can have a mentor and it still count. I don't know where they're at with it. You know, they actually asked me and I was like, I don't know. Like that's that's another thing to do and I, you know, can't. But I know they are working on it because I think whenever I started the median age of an appraiser, a general certified appraiser was like 55.

And so there's a lot of soon to be retired appraisers. And so then it's like, now what? Because they wouldn't, you know, their mindset. That was I'm basically training my replacement. And, you know, people would go train under them, get their general, and then they can practice on their own. They start their own business. And then they're direct competitors. And so they said, fine, we're not going to mentor anybody.

Yeah, that's tough. So I guess all they can do is change it, like you said. Yeah. It's just, it's going to be interesting to see because I know residential appraisers, I've never done a residential appraisal. Right. I know there's a lot of red tape. I mean, we've all done residential transactions where everything hinges on that appraisal. And, you know, the joke with appraisers is, you know, it's a love, hate relationship.

They love you when the value comes in. They hate you whenever it doesn't. Right. You're really good at your job in one scenario and you are awful and should never appraise another property in the other. Yeah. So what it, I guess like with. real estate agent or I guess specifically those selling land what what do you want them to know you know as an appraiser what is what are things that you wish these agents that you work with

what they know I would say I would want them to do more research you know you know it's not this isn't I mean it's not an easy transaction it's never never going to be easy that you know in my notes the things that just a small list water water well electricity fencing is it farm or ranchland is it development land are there structures what are the values of the structures what are the age of the structures soil capacity government programs zoning floodplain high some best use exemptions development of potential those are those are like that was me five minutes before here just jotting things down and that doesn't even touch on all of it.

So, you know, there are so many components to it. Don't be lazy. Ask questions. Go find somebody else's listing that is really, really good at what they do. Look at what they do and mimic it. Copy it. And if you don't know the answers to the questions, go find out. Don't just delete it and omit it and leave it out.

You know, go do the work. Yeah. Absolutely. I love it. So many. It's like a whole other world. Well, I mean, you know, I've done commercial stuff. You know, whenever somebody's looking at a multi-tenant retail center versus an industrial building, I mean, there are different components of value that are going to add or detract. And so you better know what those are.

And it's the same with houses. It doesn't matter to cross all of them. It's making sure you. understand what you have. Yeah. Awesome. Any other last hacks, tips or tricks as we wrap up? No. Thank you so much for having me. This was fun. Yeah. Cool. And you guys, if you want to connect with Sterling, I've had his website rolling at the bottom of our page, sterlingproperty group.net. any questions on land appraisals, you know, farm and ranch questions, especially for Texas. He's your go-to guy for sure.

And yeah, I don't know, even like, you know, starting a team that's like a whole other podcast we could do. He's got a great team in San Angelo, some of the top agents in town. And then also, you know, leadership within National Association of Realtors. he's on that too he does it all and with a wife and kids at that too yeah the kids are going to kill me five and seven years old oh too funny well sterling i'm so glad you got to come on i'm so glad you uh i ran into you and you said something about the pockets i'm like duh he's perfect he's perfect to come on and talk about this so again thank you so much i appreciate it yes i hope everybody has a good week and thank you again sterling

Friar for coming on. Yes, thank you. It was so nice to meet you. Same here. You'll have a good day. You too. Have a good, guys. Bye.