Conservation Easements 101: The Basics and Benefits of Conserving Land Kat Szymanski and Todd Henon Properties Realtor, Rhey Houston • 11 Oct, 2022 As a
It’s estimated, nearly 1/3 of America’s current home buyers are looking to relocate to a more affordable region. This mass migration presents an opportunity for Tri-State property owners to
As spring comes into bloom, the real estate world typically sees its busiest season, and 2022 is no exception. As of April 12, local homes
From Wall Street to local lenders, the country is seeing an uptick in interest rate percentages. However, experts are not alarmed, and we are
I Want to Sell While the Market is High,But Will I Be Able to Find Another Home? With Chattanooga homes selling at historic highs
The state of real estate in our region is strong heading into the new year, with Forbes ranking Chattanooga #1 for job growth.
Chattanooga’s Accredited Land Consultant and residential real estate veteran Todd Henon was recently tapped for his expertise in acreage: development, investment, and recreation. The quarterly, national Land Magazine is distributed nationwide to Land Buyers, Owners, and Brokers.
Kat Szymanski and Todd Henon Properties Realtor, Rhey Houston • 11 Oct, 2022
As a landowner or prospective buyer of land, you have many choices for how you might handle your land as an asset. For instance, you could hold your land for future appreciation, or you could contribute additional capital and expertise to develop the property into a commercial or residential enterprise. One other less obvious alternative might be to consider conserving the property and enjoying the benefits associated with this unique property vision.
Understanding the costs and benefits associated with each of these choices could significantly benefit you and dramatically enhance your long-term property outcome.
A conservation easement could be a large factor in whether you decide to purchase land real estate, or it could hinder the sale of your property sometime in the future. That said, there are potential tax benefits associated with conservation easements, as well as substantial benefits for the public.
What is a Conservation Easement: An In-Depth Look
The concept of conservation easements is easy to understand at first glance — it’s simply a set of restrictions on a piece of land designed to ensure that the historical or conservation value of the land is protected. However, while the concept is simple, how conservation easements work is a bit more challenging to discern.
Many parcels of land often include areas that a conservation agency or private land trust wishes to preserve for either historical value, conservation value, or both. The conservation easement is the agreement between the landowner and the agency or trust that defines specific terms regarding the protected areas.
While each conservation easement can vary based on the particulars of the specific property, common easement terms typically include:
The exact terms can often be negotiated between the conservation group and the landowner. However, the conservation easement that is created will then apply to all future buyers of land real estate on which the conservation easement exists. This ensures that the land continues to be protected, regardless of ownership.
Donating Land for a Conservation Easement
Owners of land real estate may be approached by a private land trust or conservation agency that wishes to protect some or all of the land. If no conservation easement currently exists, the landowner does not have to donate the land to the conservation group. However, there are often benefits to doing so, which is why many conservation easements are created each year.
In fact, the number of land conservation easements in the United States is now larger than the number of national parks, forests, and state parklands. The USDA and private landowners have partnered to enroll over 5 million acres of wetlands, grasslands and prime farmlands in conservation easements. These easements serve to protect many scenic, historical, and biological resources.
When a landowner donates land to a conservation easement, they still retain ownership and control of the property and can determine who has access to the property. The conservation agency is simply responsible for enforcing the terms of the agreement reached between the two parties.
Benefits of Donating Land for a Conservation Easement
Conservation easements often serve to make a positive difference in many communities by providing a protected area that may supply clean water, productive farmland or forests, thriving wildlife habitats, or even just some lovely scenic views. Each conservation easement is often created to fulfill a specific purpose. The majority, however, are usually meant to help maintain and protect ecological communities and wildlife. Conserving land is also an important factor in helping to combat climate change, as well as preserve historic areas and legacies.
While many landowners see the value to the surrounding communities and the environment by conservation easements, federal or state tax benefits are often a key factor in the decision to donate land.
The landowner that donates land to a conservation easement is entitled to an income tax deduction for the value of the land. Typically, a real estate appraiser will determine the land’s value and easement’s value. The donation of the land counts as a charitable gift which must be reported to the IRS. It should be noted that while land with a conservation easement is taxed at a lower value, any existing buildings and structures currently on the land are taxed at the standard rate.
The donation of land also affects the tax valuation of the property as a whole, which can significantly lower the estate tax that may be due upon the donor’s death. Additionally, estate tax exclusions may also be allowed under certain circumstances. And, depending upon the state in which the conservation easement exists, reduced property taxes might also be applicable.
In Conclusion
Creating a conservation easement is a process. As a landowner, you don’t necessarily have to wait for a private land trust or government conservation agency to come to you. You can contact agencies of your own accord and state your intent to donate land. This serves the dual purpose of enabling you to benefit from tax incentives and protect the beauty of your land for future generations.
If you are interested in purchasing land real estate, be sure to inquire whether any conservation easements currently exist on the property you are interested in. If you have a specific purpose for the land you want to purchase, easement restrictions may prevent you from doing so.
A first recommended step would be to consult with a land consultant who has the expertise and experience to help you successfully navigate this process.
Never Settle. Let land expert Rhey Houston, who has participated in conserving 10,000± acres, and Chattanooga’s 1st Accredited Land Consultant, Todd Henon, serve you.
A special thank you to Kat Szymanski for allowing us to share this article.
Realtor TN, GA
Realtors Land Institute, TN
Conservation Specialist
Broker-Realtor TN, GA, AL
Chattanooga’s 1st Accredited Land Consultant
Realtors Land Institute, TN
It’s estimated, nearly 1/3 of America’s current home buyers are looking to relocate to a more affordable region.
This mass migration presents an opportunity for Tri-State property owners to capitalize on our region’s AFFORDABILITY.
While home values in the Chattanooga area are enjoying a steady rise,
local housing prices are 20% below the national average.
Todd & Team
20+ Years Serving the Tri-State
Brittany, Rhey, Sabie, Angela, Melanie, Andrew, Beth, Jim, and Savannah
*Source: Greater Chattanooga MLS, **National Association of Realtors
As spring comes into bloom, the real estate world typically sees its busiest season, and 2022 is no exception. As of April 12, local homes under contract rose to 921, which was up from 809 just last month.*
With nearly 1/3 of current home buyers in the U.S. seeking to relocate to a more affordable region, (National Association of Realtors, 2.23.22), this spring season is shaping up to be yet another full real estate season.
The slow rise in inventory, plus more people planning to move this year could be another reason to consider putting your home on the market. Not to mention, Tennessee continues to be a top spot for said relocators.
In 2021, Tennessee placed in the top three U-Haul’s top 50 states for growth analysis. Chattanooga has also made the rankings of several U.S. News listings including:
Additionally, Georgia remains one of the fastest-growing states in the U.S. and on the radar for many looking to make a move. “With a 10-year growth rate of 14.4%, Georgia’s state growth is more than 1.5 times that of the U.S. population growth rate. The state will add more people in the years to come; population projections forecast a 17.7% increase in Georgia’s population by 2030.” Bankrate.com
Whether you’re moving yourself, or hoping to capitalize on the growing market, our Team is here to help you know, understand and maximize today’s data and trends.
Comment below or contact us at 423.413.4507 to begin the conversation.
Todd & Team
Brittany, Rhey, Sabie, Angela, Melanie, Andrew, Beth, Jim, and Savannah
*Source: Greater Chattanooga MLS, Single Family Homes, Hamilton County
From Wall Street to local lenders, the country is seeing an uptick in interest rate percentages. However, experts are not alarmed, and we are directed toward a more balanced, appropriate, and fair market.
Whether selling, buying, scrolling Zillow, or a quiet observer, recent headlines make it impossible to miss that interest rates for home loans are beginning to climb.
Forbes recently shared how rates have steadily climbed from historic lows at 2.88% to now just over 3.4%.
Balance is gradually being restored, and the realm of real estate may be getting back in tune with something akin to harmony…especially in the height of the spring listing season just around the corner.
National Association of Realtors Chief Economist Dr. Lawrence Yun shared in a Tweet that “more residential construction and industry trade contractor jobs…are now far ahead of the numbers seen before the pandemic, implying more home-building and more supply are forthcoming,” giving a nod to the potential of new construction across the country.
Furthermore, in our local market, options are growing even as inventory stays low. New neighborhoods continue to rise especially in East Brainerd, Ooltewah, and Apison. Sale Creek and Soddy Daisy also offer hope for more inventory in the coming months alongside the new industrial park planned on the McDonald Farm property bringing mixed use and recreational venues.
A recent story published in the Chattanooga Times Free Press also showed building permits being pulled at all time high for Signal Mountain’s Walden’s Ridge:
“In 2021, homebuilders raced to pull new single-family home permits on the ridge amid a strong housing market countywide, figures show. New permitted residential units climbed 64% on the ridge last year compared to 2020, according to the Chattanooga-Hamilton County Regional Planning Agency…the most annually in at least 15 years.”
Here to serve,
Todd & Team
Brittany, Rhey, Sabie, Angela, Melanie, Andrew, Beth, Jim, and Savannah
423.413.4507
(P.S. Seeking a New Career? We’re Hiring.)
It’s absolutely true the real estate market is experiencing an unprecedented combination of historic conditions:
In today’s complex market, a “one-size-fits-all” mentality will NOT work. Our Team is here to help you analyze and maximize current conditions to meet your unique goals.
Set yourself up for success by leaning into the
This environment requires harder work, deeper experience, a broader network, and seasoned expertise by your real estate professional.
Don’t let fear prevent you from maximizing the market.
Let’s have a conversation and allow us to put our 20 years of experience to work for you.
*Stat Sources: Chattanooga Times Free Press 2.23.21, 3.20.21, Tennessean 1.6.21
The state of real estate in our region is strong heading into the new year, with Forbes ranking Chattanooga #1 for job growth. Here are the 4 things to keep in mind regarding the 2020 real estate market…
?…greater Chattanooga’s GROWTH. Chattanooga ranks #1 of U.S. cities for job growth in 2020 according to FORBES, while REALTOR.COM ranks Chattanooga #4 of “Top 10 Housing Markets in 2020”. Innovative downtown and exciting development will continue to change the Scenic City’s landscape.
?…interest RATES remain low. “Most economists are predicting rates to remain below 4 percent in the coming year,” reports The Washington Post.
?…accurately PRICED properties are still selling fast. We can market property extensively, but at the wrong price, the activity will be slow. When the price is aggressive, yet appropriate, properties can sell within days.
? …new construction SHORTAGE. We are seeing the “new build” sector recover…if you can find the land to develop. Fannie Mae predicts 2020 housing starts will jump 10%, but there is a home-site shortage in Chattanooga. If you are considering building, investing, or developing, start your site search early.
In our 30 years serving in the TN, GA, AL real estate industry, we’ve helped our Clients succeed in multiple upticks and downturns. Whether your 2020 involves moving, investing, or simply monitoring the pulse of the market, we’re honored to be your real estate resource.
Here to help,
Todd Henon
Broker: TN, GA, AL
Top 1% Greater Chattanooga Realtors
Chattanooga’s Only Accredited Land Consultant
Todd Henon Properties is a leading Chattanooga-based real estate team serving Tennessee, Georgia and Alabama since 2000. Headquartered at Keller Williams Realty Downtown, Todd Henon Properties is in the top 1 percent of Chattanooga Realtors in sales volume and the top 3 percent of Keller Williams agents worldwide. Specializing in homes, estates, land and farms, Henon’s seasoned team of in-town, neighborhood, and acreage specialists are known for their expertise in traditional and unique properties at all price points.
This blog was originally posted on January 18, 2020.
Chattanooga’s Accredited Land Consultant and residential real estate veteran Todd Henon was recently tapped for his expertise in acreage: development, investment, and recreation. The quarterly, national Land Magazine is distributed nationwide to Land Buyers, Owners, and Brokers. Click here to view the Winter 2019 issue of Land Magazine online.
Read on to get to know Todd and the unique niche which has been thoughtfully layered onto Todd Henon Properties’ robust residential portfolio.
Where do you live? Chattanooga, Tennessee
Where do you work? Tennessee, Georgia, Alabama
What drew you to ranch and recreational real estate? I grew up doing chores on my grandparents’ Kentucky farm, and caving, hunting and fly fishing from Florida to South Dakota. Passion for wisely stewarding the outdoors makes it a privilege to serve like-minded clients.
What makes the corner of the world where you work special? The confluence of the Tennessee, Georgia and Alabama borders offers a lifestyle of year-round recreation gifted by the Tennessee River watershed and easy access to the Great Smoky Mountains. Sportsmen and landowners are drawn by our world-renowned outdoor opportunities: trout and bass fishing, hiking, rock climbing, hang gliding, hunting and boating. No Tennessee state income tax, affordability and top educational institutions make our area a desirable place to raise a family or retire. Within 90 minutes of several major cities, it’s not uncommon to walk out your back door to hunt deer or turkey in the morning then head to a Broadway show downtown that night.
What are the three most important tools in a ranch broker’s kit? 1—Land app, 2—Intrinsic knowledge of land and creativity for its highest and best use and 3—in the South. . . Deet
If you could call anywhere on the planet home, where would it be? Why? I love fly fishing and hunting around the world, but there is something special about coming “home” to Tennessee. Our scenic mountain views, clean waterways, vibrant wildlife in pastures and woodlands, colorful flora and fauna and our moderate climate are ensconced in entrepreneurial innovation and rich history. Especially with three grandkids nearby, my wife and I would choose our hometown of Signal Mountain, Tennessee, every day.
What’s the most profound lesson you’ve learned from the land or its people? Responsibility and stewardship
Listener or talker? Listener
If you had one extra hour of time per day, how would you use it? Outside. . . whether helping clients develop vision around a piece of land, chopping wood or casting flies
Would you rather be without Internet for a week or your phone? Internet. I can “old school” real estate on my phone and maintain a high level of productivity. Technology certainly makes our days more scalable, but there have been many-a-successful land brokers able to sell thousands of acres just by knowing his/her area and members of the community well.
If you could give one sentence advice about how to live life, what would that be? Hard work + trust in God’s provision will win the day.
Describe your perfect work day. Everyone on my team leveraging their gifts and talents at full capacity, while I guide a client through a sale or purchase that enables them to fulfill their vision and move into their next chapter.
What is your most memorable deal to date? Lightning struck twice when our team helped sensitively transition our seller—an injured cattleman—from his beloved acreage by connecting him with an international dog field trial champion. After a nationwide search, we helped our buyer convert this stunning 193-acre Georgia farm into a beautiful home and perfect venue for global competitions at which our team pitched in to barbecue and extend Southern hospitality. It’s rewarding to see one property fulfill two important dreams.
Todd Henon Properties is a leading Chattanooga-based real estate team serving Tennessee, Georgia and Alabama since 2000. Headquartered at Keller Williams Realty Downtown, Todd Henon Properties is in the top 1 percent of Chattanooga Realtors in sales volume and the top 3 percent of Keller Williams agents worldwide. Specializing in homes, estates, land and farms, Henon’s seasoned team of in-town, neighborhood, and acreage specialists are known for their expertise in traditional and unique properties at all price points.
Todd Henon Properties 423.413.4507 direct Info@ToddHenon.com Keller Williams Realty Greater Downtown Realty 1830 Washington Street Chattanooga, TN 37408 423.664.1900
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