I am currently listing a 10 acre piece of vacant land, which is zoned R-1, in Hesperia, California. The seller states the property can be zoned commercial. I spoke to the planning department and they stated it is zoned residential. My client is totally convinced they are wrong and it can be switched if someone pitches a commercial rezoning presentation. What is your take on this?
In addition to online listings that target lot and land buyers, effective property signs always should be part of your marketing plan. Don’t just use a standard “For Sale” sign; we suggest that you have a sign custom-made for selling your lot or land (which can be done relatively inexpensively these days). You can help tell the story with your custom signs by including a few key points like acreage and property features. The sign(s) should be located for visibility, look professional and be kept clean and upright.
If you have plenty of time and are not in a hurry to sell the property, and would like to do very little work I would suggest listing it with a broker. They will be able to create a listing for the property, answer phone call and emails, and handle the closing. The downside of this approach is comes at a price and you typically only get local exposure and most real estate agents who deal with both land and homes will most likely put more effort into selling their homes as the commissions are greater.
We currently own 10 acres of land with a lot of road front footage. A very large nice development is underway adjacent to our property; the developer also recently had some type of auction and sold 92 lots. It has been brought to the attention of my husband and I that no homeowner construction can begin until development access issues are resolved. Presently, they have issues with line of sight entering into and out of the development; the development has a small privately paved 2 lane road entering onto the public highway system. Our property sits high on a small hill, it is large enough to occlude site to the left when pulling onto the highway. Our home also sits on a curve. We also have fencing – similar to what you might call pasture fence – that also occludes a drivers site pulling out as well. The developer has sent a neighbor (also his friend, may even be a partner) – who lives in the only house built in the development – although how they built that with restrictions in play – I do not know… Maybe because it was a single dwelling??? It was there before the current developer purchased it from the previous developer (who built the home in there as a “spec house”. First, this representative showed up saying they would like for us to move our fence and they would pay for us to move it (how kind). We just listened… And told him we like our fence just where it is – we know that even with the fence moved the line of site is still occluded – the hill would have to come down or be graded somewhat for it to work. 92 homes would also generate a lot of traffic. A turn lane was mentioned but no details were given – in fact no plan was presented at all. We think he was just feeling us out. My real question is how much should or could we ask for the property if we agreed to whatever their plan is – of course, we would see the plan proposals and bring in a lawyer. I don’t know how to begin to calculate it! I have considered 92 lots multiplied by something! Maybe 20,000 each? My husband spoke with a member of the NCDOT who was out here doing some surveying – he stated that the DOT really had no interest in the property – I want to take that to mean they would not force access for the developer – but I do not know – my knowledge is very limited on this subject. Bottom line is they are in “a real pickle” if we decide not to accommodate/sell them the needed frontage. No money has been offered – it was just stated that we would be compensated. It seems we are in the position of power as far as a selling price – as they cannot develop without meeting those requirements. What would/do you advise and what resources should I use to educate myself. I have found the Policy on Street and Driveway Access to North Carolina Highways and been reading over it. I really do not want us taken advantage of either as far as the construction phase and the end result to our remaining front yard.
If you intend to hold onto a property for any length of time, beware of a super high tax bill relative to the actual value of the property itself. I haven't run across this issue very often, but for various reasons, there are some properties that have some ridiculously high taxes in proportion to the property’s actual value (for example, if a $10,000 property has an annual tax bill of $2,000, THIS IS TOO HIGH). In my experience, I've found that a reasonable annual tax bill usually falls in the range of 1% – 4% of the property’s full market value.
We buy land fast from people for many different reasons. Unlike what most people guess, it’s actually not usually from people who are trying to avoid foreclosure. In reality, most land owners just have a piece of property that they really can’t use. It’s also really difficult to sell most types of land, unless it’s something you focus on……like us!
When you sell land by yourself, this is called a private sale. So, you will need to find a private buyer. It may help you to talk with local farmers if you are looking to sell raw land; farmers have all kinds of experience in purchasing land for their crops. If you are selling your land on your own without the aid of a real estate agent, this next section is for you.
Get Proper Tax Advice. This is an absolute, and again must be done early on in the procedure. Professional advice is needed to structure the transaction in the most tax efficient way, making the most of any reliefs and exemptions that may be available. Income Tax, Capital Gains Tax, Inheritance Tax, Value Added Tax and Stamp Duty Land Tax are all taxes which may need to be considered and planned. Many developers will want to certain that the seller has obtained professional tax advice before exchanging contracts.
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.
LANDFLIP is a beautifully designed website that is very user friendly. They've done a great job of providing users with high quality content and providing us with great exposure for our properties. Their customer service is superb and their backend interface is extremely easy to use. I only wish there were more websites like LANDFLIP to showcase our properties on.
I’m learning the hard way about the hidden costs of buying empty land. Unless utilities are already there, it can be VERY expensive to run them from the street to the building site. For example, one parcel we looked at was about 1000′ feet off the main road where utilities are located. To run city water, gas, electricity, and cable could run anywhere from $10-100 per foot! Multiply that by 1000 and I better understand why developers say that they spend the same on running utilities as they do on the land. It may cause us to reevaluate our goals and possibly shift to buying a property that already has a rundown home on it.
And last but not least, you can advertise it for sale online. Three sites that I recommend, especially if you need to sell your land fast, are Bid4Assets.com, eBay, and Craigslist.org. The internet should be your medium of choice for those of you who are selling land that is located in very secluded and isolated areas of the country, far removed from civilization, since there won’t be any people nearby to see your “for sale” sign.
Land Requires Different Sales Techniques – A home has a kitchen, bathrooms and a façade that can be visual and photogenic. You can hold an Open House for a home and walk a buyer through each room to help make the sale. Buyers can easily visualize themselves in – and fall in love with – the built home. It’s just not the same for vacant residential lots and land.