2. The answer to this question depends entirely on the property, how much timber is on it, and how much money you can get from the sale of the timber. If you’re really lucky, you might even be able to sell the timber for more than you paid for the property itself (however, I would say this is more the exception than the rule). You might want to check out this article for some more insights if you haven’t already.
This issue can be overcome if you can establish a legal, recorded easement to the property. This can be done if one of the neighbors is willing to allow you access through their property – to yours. In many cases, a neighbor shouldn't be expected to do this for free, you'll have to give them a reason to help you (usually in the form of money). Again, this isn't an impossible issue to overcome, but it is definitely something you'll want to be aware of before you purchase.
Hi Steve…great article! In my village there is a 1.4 acre lot that is of interest to me, but I don’t want the whole thing. I am only looking at about a third of that. Problem is…the entire 1.4 lot is owned by our local school district and the administration building sits on the front part of it. The backside of the lot (the part I am interested in) is totally unused and mostly wooded. There is a very distinct treeline to where the lot could be divided. How difficult would it be acquire that piece of land behind the building…given it’s owned by the school district?
Just wanted to thank you for the help you provide to everyone here.I live in Europe and would like to buy a 2 acre to retired on a mobile or prefab cabin on it ,using the land as a small homestead but would you buy when you are not even in the states?I would use golook to check the property but Im scared or doing such a move.I found a 1acre owner finance and Im tempted.
Curry encourages sellers not to position their home as a teardown because it narrows the market only to those looking to build new, when there might be other buyers who would be happy to renovate it. No need to touch an outdated kitchen or bathroom, since a renovating buyer will likely target those rooms for first projects, but a broken stair rail or damaged window should be fixed.
A type of local council zoning covers every home in a suburb. This is a planning instruction that tells developers and planners what can be built on different parcels of land. For most houses, the zoning is low-density residential – this means that only houses can be built on this land. But in some areas, high-density zonings are more common, or even mixed-use zonings. And zoning can change, if the plans for your suburb change. When a piece of land moves from low-density to high-density zoning, it has increased in value for a developer.
Whether you are working with a real estate agent or not, we absolutely encourage you or your agent to target your marketing to the right types of buyers. Adding a development parcel or lots to a general real estate listing site, or even MLS, just doesn’t get your property the exposure you would want to builders, developers, investors that are actually looking to buy this type of property.
Planning Consent. This will be needed before development is begun, but who obtains it is a question for landowners. Embarking on the planning process at your own risk can pay off, but it is a gamble and we recommend that you speak to either a surveyor, a planning consultant or a planning officer at your local authority to get an idea as to whether or not an application for consent for development would be successful. Many such applications will go to appeal. Is the planning consent you obtain going to be the one developers need? This is why many landowners enter into promotion agreements or conditional contracts which oblige others to apply for planning, as they often have a greater chance of success on the right terms. Be aware though, that extensive price negotiations can take place once planning consent is obtained, and the actual net development area can be calculated. This will take into account any ‘extra’ costs such as wildlife surveys or ground investigations that are required as a result of the planning 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.
Since land is often a unique commodity, it can often be a pain for you or an agent to try and sell it. Land is often hard to value, and most buyers lack vision for what it could become. And that’s not to mention the fact that you have to be available to show it and explain the same land package over and over again to lots of potentially interested buyers.
The listings on Fizber are pretty basic, and like most of the sites on this list – they're geared towards properties with improvements. The site gets a respectable amount of traffic (given that it's focused solely on the real estate crowd), but it's not quite in the same ballpark as Zillow or Craigslist. Overall, it's not a bad option to work with, especially if you're interested in blasting your listings out to the MLS as well.
Any ‘extraordinary’ costs relating to the development of your site. For instance, because of geological conditions the site – or part of it – may need more expensive foundations. If part of your land contains a site inhabited by rare animals, such as newts, the developer may be required to create a new habitat for them on a different part of the site and even provide ‘newt crossings’ to encourage them move to their new home. This is expensive and time consuming work and developers will ask for additional deductions, based on their view of the costs of this work. You need to be able to understand the calculations they are making and be reassured that they are fair and reasonable
“I visited the property on Sunday and most of the lot was inundated with water. It is apparent that the soil is saturated for significant periods. Based on my observations, which are consistent with the available online data, it is my opinion that the lot is unbuildable since it does not meet the minimum New York State Dept. of Health (NYSDOH) requirements for the design of an onsite septic system. NYSDOH requires at least 12 inches of native useable soil above the high groundwater level and the septic system cannot be situated in a wetland. While NYSDOH has many other requirements to comply with, these two deficiencies cannot be addressed by any approvable design.
Advice: One of the added benefits of hiring this agent is that they can advise you on much more than just the price of your land. A true professional will have a network of individuals that can help you with anything from tax planning to pond building. An experienced agent can tell you what is possible. They may know many things that can save or make you money during your transaction. Most of the time a good agent will help you net more money from selling your property than you can get on your own.
Very interesting read. I am looking at some desert land in both NV and AZ. They are between 40-80 acres each. My budget seems to afford places that either have an old well, or power at the lot line, but not both. Which utility do you feel is initially more critical to have of the two? I know adding a solar system or having power brought in is very cost prohibitive, so my thought was to go with the power on the lot. I figured I could always have water trucked in and stored in a tank since the properties are easily 2WD road accessible. I figure that buying property with an old well may be worthless and not worth the price increase of the property. And I have been reading that drilling a well is a gamble. Thanks in advance for some insight.
Comparables for land can be trickier than for home sales in your area. Although the assessor's valuation on your taxes can provide a starting point, consider factors like whether your property has utilities to the property line, views, zoning and any preapproved building plans to determine its worth. Location is always one of the most critical factors. In San Francisco's Pacific Heights area, for example, a buildable cul-de-sac lot of less than 4,000 square feet can sell for more than $9 million.
Hi, I found your blog via searching for help for a decision. I have two 10 Acre parcels with views of the Stanislaus Mountains in Northern California that are part of an 8 parcel development back in 2006 for $160k each (ouch) with the intention of building a home on one and the other as an investment. One has a well the other does not. There were two owners of the development that built right before the financial crises but no one has built since. I wanted to lower the property tax so I listed them each for $60k, not thinking I’d ever get an offer and since dirt is not selling in that area well, but low and behold within two weeks I received two offers on the parcel with the water well (one from a real estate agent/2nd from a neighbor behind the property). I’m not sure but I think both have different intentions for purchasing which doesn’t matter (you are able to grow marijuana in that county). Now I’m uncertain about selling since it was not my intention and I’d really like to recover my investment. Should I wait to see if land values rise to what I paid back then or should I take the money and run!? They both asked for owner financing. There is access to power and the development’s access is through a gated community. Any comments would be welcomed and appreciated. Thank you!
Hi, Jane. Some of your situation will depend on local regulations (as always), but I would think you could handle this scenario by subdividing the 2 acres off as a building site but your son still keeps the land in his name. In other words, there likely is no need to transfer the property to you at all (unless you just wanted to do it that way). If he keeps title you also may avoid incurring unnecessary taxes, transfer fees and other transaction costs. Check with a local real estate attorney, and good luck!
"I've seen both buyers and sellers do this to try and gain some type of advantage in negotiations," says Robert King, a land agent with AlaLandCo; a native of Clay County, Alabama, he has over 10 years experience in marketing and selling property. "It rarely, if ever, works, and absolutely serves to drive the parties further apart." Also, don’t make a laundry list of everything that is wrong with a property you are trying to buy, cautions King. "You must like the property, or you would not have spent all that time figuring out everything that is wrong with it. That just puts the seller on guard and creates a personal barrier." When you impart your wealth of knowledge of all of the property's shortcomings to the other party, you are not likely to make a friend of the seller, says King. You want to be on friendly not adversarial terms with anyone you are negotiating with for the land deal.
Selling land is usually a more complicated process than selling improved property. When you sell a property with a building, its use and value is established by the building on it. Before buying unimproved land, most buyers want to investigate what they can do with it to determine what it's worth. At the same time, the buyer pool for land is usually smaller than the buyer pool for improved property. With this in mind, selling land quickly requires unique strategies.
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.
If either of these things are inhibited, it wouldn’t be highly unlikely that the land can be secured in the way you describe. In a free market, the seller can (and usually will) sell to whoever is offering the best deal at the right time – so if the developer can’t be competitive in this way, it boils down to the old saying, “Beggars can’t be choosers”.
I have been meaning to write this review since April 2017 but we had been looking for a good solicitor for weeks for my mum. Me and my dad spent most the weeks trying to find a good solicitor and we finally found Paul Davis. All the staff at BHW are really friendly and hospitable and Paul Davis did a very good job with my mums litgation case. Would definitely recommend BHW especially Paul Davis.
Hey Seth, as always great article! I found the free online marketing ideas (like posting on Craigslist) especially creative and helpful. Thanks so much for helping me through the stressful process of selling my home. Since you asked what other creative tips I’ve found–I read this eBook in my research and found it so helpful that I thought I’d post it here in the chance that it could help someone else. Here it is: https://www.homelight.com/sell-your-house-online-ebook
Thanks Ann! I’m so glad you got some good value out of it. I think you’re probably on the right track in getting outside help with the zoning details – that can be quite a confusing area if you don’t have any prior experience with it. If you have a builder in mind, you may want to get them involved on the front end too – as they will be able to point out most of the important details you’ll want to evaluate before they’re able to start building (even if you don’t plan to build for a while, they’re still great for some free consulting if they’re expecting to help you at some future date).
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.