Anyone looking for land for sale in Arizona has probably already encountered a discouraging fact: prices have been steadily increasing for several years. You can’t find land for sale in the Phoenix metro area or in Pinal County at the distressed prices we enjoyed just a few years ago.
That’s a direct result of the increase in development. When the market is soft, a first developer might stick his toe in the water to test the temperature. At that moment there are lots of sellers struggling to sell and he has his pick of the lot of them. But once he’s demonstrated he can make a good profit, he prepares to dive into that market with gusto, only to find his success has drawn other buyers. The market heats up, and developers are discouraged by the new prices they are forced to pay.
The situation with us at Arizona Land Partners is quite the opposite; we’re actually encouraged by those rising prices. In fact, we’ve got a long history of exploiting them for spectacular profit, which we’ve generously shared with our investors. Here’s why our approach works.
Rising Prices With Development Land For Sale
When a developer searches available land for sale, he’s got a specific use in mind. He’s effectively bidding against other buyers based on his costs of construction, his cost of capital, and the potential resale value of his developed project. In a normal, healthy market, multiple developers compete aggressively against one another, each stretching as far as they can to purchase pieces that will allow them to continue to build.
As a result, the market experiences upward pressure. Land prices and construction costs rise, and developers and builders are in a constant struggle against rising prices to find land they can afford in light of their building budgets and resale projections.
Developer Demand Compared to Market Trends
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Yet, for us the trend means something quite different. The rising prices of Arizona land for sale actually helps our bottom line. We’re not developing that land, we’re preparing it for and selling it to the people who are.
So our approach to buying land is significantly different than the developers’. The developer wants to buy right in the middle of the growth. Developer demand is greatest at the edge of the city, where multiple projects are springing up, and large parcels can still be had but fetch their highest prices. Developers want to buy now and build now.
However, we buy ahead of the growth. First, we look for raw land for sale directly in the path of progress, but probably not in the heat of current development. Then, we spend a year or two doing the engineering that developers so hate to do. Lastly, we look to sell as development moves a little further out, at prices at multiples of our all-in costs.
Why Partner With Us?
I’d like to invite you to partner with us. We’ve got a great history and strategy. We examine and understand the market, and we offer a generous profit split.
The benefits of buying land for sale in Arizona for investment:
- Consistently one of the fastest growing regions
- Friendly development policies
- A long history of steady appreciation
- Your connection to the right team at Arizona Land Partners