Particularly in popular neighborhoods and areas where undeveloped space is limited, purchasing existing property for the sole purpose of building a new structure on the land is fairly common. In many cases, developers and building companies will redevelop multiple properties in a neighborhood, knowing buyers will eat up new, bigger homes where midcentury ranch houses once stood.
But do not — and I repeat — do not try selling directly to a developer/builder. These folks, when dealing directly with a property seller, will base their typically lowball offers on a “fair market value” determined by appraisers they hire, who are typically agenda-led cronies. Such offers will almost certainly not take into account the recent increase in land values that all this upscale multi-tenant development is creating.
Hi Debbie – that’s an interesting question… I’ve never heard of that one, but I suppose I can see why you might wonder. I’d have to imagine any harmful chemicals from a cemetery would be in extremely trace amounts (nothing like you’d expect from a gas station), but at the same time… I’m not an environmental professional, so I’m really not qualified to give my opinion on it.
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.
Hi Marie – I think it depends almost entirely on how much you paid when you bought it, and how much you can sell it for (with or without any improvements on it). Improvements will often improve a property’s value, but not always. You need to understand what the highest and best use of the property is and THEN you’ll be able to zero in on what the property may be able to sell for based on how it will be used.
Negotiating: A good agent can help you navigate the negotiation process and give you perspective on what to offer and what to accept in order to help you reach an agreement with a potential buyer. Negotiations are often tense and can become emotional. The agent serves as the go-between, and is paid to defuse and diffuse the negotiating process. A man that I showed land to last week, was planning to sell a property he owned and do a 1031 exchange into a property I have listed. He told me about a cash offer on his tract that was “as good as in the bank” for about $350,000. One of the owners that adjoined this man’s property had made the offer about a month before he came to see my tract. His adjoining owner called back yesterday and dropped his offer from $350,000 to $315,000. Had I been his agent, I would have advised him when the offer came in to go ahead and accept it. His delay in accepting the offer probably knocked him out of buying my listing which he liked a lot.
I’ve never heard the tip to create your own website when you have a home for sale. I also have never heard the tip to keep an eye out for “For Rent” signs to in order to look for more homes for sale. I’ve heard that it’s a good idea to find homes for sale that have been on the market for a while because there’s more room for negotiation, thanks for the tips!
The way that we found it was by checking our local county tax assessor site and seeing that it was vacant and owned by a gentleman who lives out of state. It wasn’t on the market, but I asked our realtor to contact him and low and behold he is willing to sell (it was inherited). As soon as we were ready to make an offer, he stated that he wants to go forward with an independent appraisal to see what the value is since he does not live in the area, which I understand (he is also a realtor in CA).
When you are buying and selling lots and land, working directly is often the best way to go. Agents don’t typically put in the time or energy that they’d put into a selling a house. Comparatively, the commissions are low, and the land market is slow. When a parcel is listed on the MLS, the price is often inflated to cover commissions and other fees that will offset the seller’s profit. Typically there is less money and less effort put into marketing a piece of land, so it ends up sitting there, with the price being slashed time and time again.
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.
I am a relatively new real estate agent and just got a land listing. This is a great article with many helpful strategies for selling land. I think selling land can be a bit intimidating because most sellers have such high expectations that you will sell their land for them quickly and it usually takes much longer, as you pointed out in your article. Thank you for the great information!