Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction

1802 was an important year for the United States. Ohio was created then as a state, and it paved the way for the others that would follow. We now come to 1803 in our Realty Time Capsule journey. This is a very important year in terms of real estate for the United States.

Three Key Points  

1. Louisiana Purchase: This is the year that the Louisiana Purchase took place.  In what is arguably the most important real estate deal in history, the United States managed to double its land area in exchange for $15 million or around $300 million today. 

France controlled the Louisiana territory from 1682 until it was ceded to Spain in 1762. In 1800, Napoleon regained ownership of Louisiana in exchange for Tuscany as part of his efforts to re-establish a French colonial empire in North America. Several events caused Napoleon to rethink his plans for a French presence in North America. This led him to think about selling Louisiana to the United States.          

President Thomas Jefferson on the other hand was eager to get Louisiana because it would allow him to control the traffic along the Mississippi River through the port of New Orleans. 

 2. Marbury v. Madison: Marbury v. Madison was a landmark case in the United States Supreme Court, which established the principle of judicial review. The principle of judicial review means that the courts in the United States have the power to strike down laws that they deem to be unconstitutional. The case also helped to define the boundaries and relationship between the judiciary and the executive branches. 

 3. Ohio Is Admitted into the Union: After the Northwest Indian Wars, the popularity of the Ohio frontier grew because of the stability and peace in the area. In 1802, the state of Ohio was created and then on March 1, 1803, the state of Ohio was admitted into the Union. It would pave the way for the other states that would follow.  

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Headline Real Estate News Stories in 1803 

 The Louisiana Purchase was not only one of the biggest headline real estate news for 1803 but for the entire history of the United States. The purchase almost doubled the size of the United States. In fact, it included lands from what would become 15 American states and even two Canadian provinces. 

 The truth is that France did not have complete control over most of the lands that were included in the purchase. Most of the lands were controlled by Native American tribes. In essence, what the United States purchased was the right to negotiate with the tribes who inhabited them or to outright conquer the lands. However, the headline regarding the purchase was such a huge boost to American pride. 

 What Historic Real Estate Events Shaped 1803?  

There were a lot of historical events that shaped what happened in 1803. One of those events was the Third Treaty of San Ildefonso which was a secret agreement between Spain and France that gave the latter ownership of Louisiana. 

When Napoleon came into power, one of the things that he wanted to do was regain French possessions in North America. The agreement exchanged Louisiana for Tuscany which France had gained control of at the time. However, these plans were thwarted by the success of the Haitian Revolution and the fear of another fight against the United Kingdom breaking out.

 Economic Factors, Supply, and Demand  

The First Barbary War was still ongoing. It had its effects on the trading and the shipping of the country but overall, the economy of the United States still flourished. President Thomas Jefferson and others in his government were very optimistic about the Louisiana Purchase. Not only did it add land to the country, but it also made shipping through the Mississippi easier with the acquisition of New Orleans. 

Government Policies and Interventions  

The initiative to buy Louisiana from the French was perhaps the most important government undertaking for the Jefferson government. It added 827,000 square miles (about the area of Argentina) to the country, paving the way for a continent-wide United States. Had the French decided that they did not want to sell their North American possessions, things would have turned out differently for the United States.  

Demographic Factors  

By 1803 Louisiana had a very diverse population. A significant portion of the population were ethnic Spanish, French, or Mexican. The non-native population of Louisiana at the time of the purchase was around 60,000 inhabitants. Of that half were enslaved Africans. Then there was also a significant presence of free people of color.  

There was a large influx of refugees from Haiti during this because of the revolution there. This brought in a new influx of slaves into the new territory. 

Societal Preferences and Trends 

The announcement of the purchase made many Americans excited about the new possibilities that it brought to the table. There was an eagerness to explore the new lands that came under the control of the United States. 

Transportation and Infrastructure    

The Louisiana Purchase largely happened because of Thomas Jefferson’s desire to control New Orleans as a part of the shipping along the Mississippi River. Control over the city meant control over the river shipping. Back in the day before the railroads were constructed, shipping through the river was the main method by which goods and produce were transported. 

1803 was marked by the single most important real estate transaction in the history of the United States. With the stroke of a pen, the size of the country was nearly doubled. At least on paper, because the reality on the ground was very different. For the next Realty Time Capsule, we will look at the immediate aftermath of the purchase and how it impacted the real estate market of the country. 

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For a deeper understanding and look into these topics check out these titles:

The Louisiana Purchase: