Prospective buyers for your undeveloped land are likely to have a multitude of questions. Prepare your information about the land ahead of time to be as informed and helpful as possible during the sale process. Buyers who anticipate building a home on the land will want to know about current or future access to public utilities and options for a septic system. Buyers more interested in recreational use will ask about zoning restrictions and seasonal weather conditions on the land. All types of buyers may have questions about nearby services, such as hospitals and commercial centers, as well as the quality of cellular reception on the land itself.
Thanks for the article Seth. Very informative. Vacant land is one of those types of property I’m coming across in my search for good deals on houses. I’ve been a little brave offering people a cash offer for their lot. Only to find out later the parcel has a myriad of challenges. (Most of which could be dealt with-time and money, but still not worth it). Thankfully nobody took the deals yet. I have learned a lot and gained more understanding. I am closer to getting raw land at a great price that is build-able! Articles like yours, helps guys like me, stay focused and saved from troubles! As we know the bigger the challenges and unknowns the higher the risk-and the payday. Tread carefully.
Hi Colt, whenever I buy landlocked parcels, my offer is VERY low (because practically speaking, if nobody can access it, it might as well be on the moon – which isn’t all that useful UNLESS someone can obtain legal access). One way to prove that it’s landlocked would be to find a parcel map of the property – and I explain how to do that in this blog post: https://retipster.com/property-pictures
If an application is turned down, it is usually because access to the site is difficult or it adjoins a main road. The ideal building site has frontage on an existing road. As little as 30 ft to the side of your house can provide enough land for a new house, although permission is more likely to be given on tight plots if existing houses in the street are closely packed.
If a property doesn't pass this test, you could have a very difficult time building any type of dwelling on the property, so unless you're able to tap into the municipal sewer system (which will negate this issue altogether), be sure to give the county health department a call and ask them what is required to install a septic system (or connect to the local sewer) in your area. For a detailed overview of how a perc test works and how to verify the status of this issue, check out this blog post.
If the property is part of a Home Owner's Association (HOA) it will most likely have even more stringent restrictions in place to help maintain the “quality” and formality of their neighborhood. The idea is to keep any bizarre behavior OUT of the neighborhood (e.g. – cars in the front yard, lawns nobody takes care of, houses that look out-of-place or aren't built to code).
Whether youre selling your land yourself or with the help of a real estate professional, its important to ensure that you have all the necessary documents to complete the transaction. Its highly recommended that you consult with an attorney to ensure that your contract includes all of the necessary information and to ensure that you arent missing any important documentation. If you plan on selling the land yourself, be sure to do your research to avoid complications during the sale process.
I am considering buying a quarter acre, to build a house for my retirement in a few years. I have never bought land before but it is in an area that will definitely increase in value over the next few years so I want to lock it down now and build the house I want later, rather than purchase a home and make payments in addition to my current home. Thanks for the tips on how to assess, my question is whether I should use a realtor and/or get a property appraisal. I will probably pay cash for the land. Thanks much!
Land Agents have Expertise: True land professionals know how to price and market properties effectively. Any agent you are hiring should be able to clearly articulate their strategy for selling your property. A good agent will employ multiple prongs for engaging prospective buyers, including advertising in print media (when appropriate), on the internet in key places people look for your type of property, and other avenues such as signage or word-of-mouth. Good agents have a proven formula for attracting the attention of quality buyers. I have my own multi-point system that I use for each listing that generates results.
With the Arizona housing prices climbing up to pre-crash levels and single family homes being snatched up by investors to flip or rent back to millennials, do you think buying raw land now is the best strategy ? In my opinion, the fact that its hard to generate income off of raw desert land many investors pass because there in no rate of return. Million dollar homes are within a few miles of these parcels I’m looking at and i can buy a 2.5-5 acre parcel below 250k. I want to park my money in land because i know this area is up and coming vs risking it in the stock market. I would sit on the land for 10-20 years before building. Am i crazy or just see something a lot of other investors are missing out on? Also, small washes on parcels are not a huge issue right? I avoid anything that falls in a flood plane
Looking to make money off your parcel of vacant land? Sell it today to Land Trust Company! We are not real estate agents, nor are we affiliated with any real estate agency. We are a network of private investors with the resources to buy your property now! There are NEVER any fees, commissions or other charges to you. We make the sale easy for you and put cash in your pocket fast! Simply fill out our online property assessment worksheet and you will receive a written offer from us.
Successfully subdividing your land into residential lots can have many benefits, including providing a landowner both increased profits and flexibility. If you are buying or already have a large parcel of land for sale, or even a home lot that has “extra” land area, you may wish to consider whether subdividing your land can help you maximize your real estate resources, something that many landowners are evaluating in the current market conditions.
Very informative articles, and exchanges. I have a general question about subdivisions. I am looking to sell a 5 acre parcel, that would accommodate about 45 lots. The lots would be sold, with houses built, for a minimum of $750,000 each. Would you say there a rough guide, as to what percentage the cost of land should be for each lot sold? Obviously, the lower the cost of the acquired land, the better for the developer, but I’m just wondering if there is a ‘rule of thumb’ in the business. For example, no more than 25% of a lot’s sale price should go towards the cost of the land? I am not looking to push the buyer to their break-even point, but I want to get a fair price too.
Steve, my son in-law has 10 acres of land. About 13 miles from a town & we have talked about me living on a small part of the land he would need to subdivide about 2 acres to me. But if he does sell me these aces. I want to make sure that he gets the land back can the land be in both our like a car title. & being I am getting older it would be nice to live close to one of my family members. & I love to out country. Jane
If you want to get the inside scoop on how to start and run you own land investing business, come and check out the REtipster Club – where you'll get access to a full 12-week course, videos, bonuses, downloads and a members-only forum (where I spend time answering questions every week). There is no better place to learn this business from the inside out.
If you're planning to build a “dwelling” of any kind on your parcel of land, there is one issue that may seem insignificant at first glance, but it has the potential to make or break a land deal. It's called a “Perc Test” – and if you're dropping some serious coin on land in a rural area, this is an issue you'll want to be sure about before you sink your money into it.
Jonathan is passionate about helping people buy and sell land. He is an associate broker with Southeastern Land Group, LLC (SELG) and is the Responsible Broker for the company in Mississippi. Jonathan is an Accredited Land Consultant (ALC), working with Southeastern Land Group (AlaLandCo) since 2008, serving Alabama and Mississippi. He is a member of the Alabama and Mississippi chapters of the Realtor’s Land Institute (RLI), and is currently serving as Vice President of the Alabama Chapter. Jonathan specializes in marketing rural properties online, and is a contributor for LANDTHINK.com, writing articles focused on helping people buying and selling rural land.
Always offer to ‘show’ the property to prospective buyers. It’s an obvious step for home sales, but some people neglect it for land sales because they believe there isn’t a lot to really show. That’s the difference between a strong seller and a poor one. To be a successful salesperson, you’re always selling. You want to show the buyer the property lines, and then, lead them out to see the neighborhood, local businesses and other aspects that could seal the deal.
Hi Noam – I don’t check them all, every time. Many of the issues can be immediately ignored based on where the property is located, it’s size, and what it would most likely be used for, etc. For example – if a property is in a mountainous region, flooding will almost never be an issue. If the property isn’t ideally suited for building, then utilities and septic don’t matter. You get the idea.
This website gives sellers the option of listing their properties on the MLS for a flat fee (without signing a contract with a real estate agent). Granted – this extra feature isn't free, but it's a nice little premium tool that isn't offered by most of the other platforms on this list – and considering what a HUGE additional audience the MLS represents, I thought it was worth pointing this out.
Here is an example of the kind of sites that I prefer: landandfarm.com Although these sites are not free, they charge no more than $40 a month for a basic listing package which is actually cheaper than eBay and tends to fetch higher prices as eBay buyers are typically deal hunters. These sites have easy to fill out forms requesting all the basic information a buyer will want to know prior to acquiring the land. They have easy features for uploading pictures and inputting maps. Don't expect the property to sell within the first month. However you should get some inquiries that first month and if you don't you will want to edit and adjust your advertisement or switch aggregator sites. Once you have a link to the property you can start sharing it on social media sites like Facebook and Twitter. You just never know if a friend of a friend might be in the market for your property.
After identifying your likely buyers, try to think like them so you can focus your message to convey what they need to know about your property. Have information ready about schools, shopping and other nearby amenities. For developable land you can be prepared with zoning information and insight from local authorities about the location and capacity of water and sewer service. Each property is different, so customize your information for your situation and your targeted buyers.