Hello and thank you for this great topic. I have about 4 acres of land in on my residential property. My home is on the river with a dock etc and has about 1.5 acres itself. I have these 4 parcels of land that can be developed into residential properties yet I have no idea how to approach a developer. There is easy access to the main road and I have been told I could subdivide these plots and also provide river access via a trail running along the side of my house, that wouldn’t actually interfere with my main home at all. Should I simply put a sign up advertising these available lots or should I contact private home builders in the area. The home is in a highly sought after area where many would like to build homes. The previous owners told me they had been offered well over $1.6m for the lots but turned them down.(They were elderly and didn’t want to sell just the land). Any suggestions would be greatly welcomed! Thank you!
And consider that the developer may not really “need” your property, and may just be looking into options for improving the entrance to the community. It’s worth noting that a more beautifully landscaped or designed community entrance adjacent to your 10 acre property could increase your property’s value. Also, building a friendly relationship with the developer may lead to a buyer for your property in the future.
If you own a piece of land that you’re thinking about selling, you need to know how to sell your land the proper way and at the proper time in order to maximize your ROI. Land is one of the most significant investments that you can make in your lifetime. So, if you are thinking about selling your land, you need to be absolutely sure about your decision.
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.
You mentioned that the adjacent development already is “underway” and that the developer recently sold 92 lots. This makes me wonder why the developer would be coming to you now about roadway frontage for a turn lane. Usually the road improvement plan is in place prior to the subdivision being formally approved and recorded and the developer secures rights to all of the land it needs for turn lanes in advance. The existence of lots in this development suggests that the road plans already should be approved. Get information from your local planning or subdivision department (as applicable, or possibly the DOT) and see if you can find the plans for offsite road improvements for this subdivision. It’s possible that there was a lapse in the planning process — or that the original roadway improvement plans have expired if the project was abandoned during the downturn — and the need for land for a turn lane has recently come to light. Do your research to understand the facts.
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.
On those notes, pay attention to who you’re likely buyer will be, and seek out those people. If the land is zoned for commercial businesses, make entrepreneurs and existing business owners your target audience. A real estate agent who is selling a flat property that gets a lot of sunshine may want to reach out to energy companies who are looking to build solar arrays.
No matter whether the thought has occurred that I want to sell my land online, or you are open to selling it any way you can, be sure to take the time to make sure the land is clean, and have any debris removed. Do some basic landscaping to make the land look more appealing. If you wanted to buy land yourself and it looked unkempt or overgrown you would most likely have second thoughts about that particular parcel, the same will be for those interested in the land you want to sell fast.
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.
Its the perfect time to sell your land and develop. With the housing market on the up and the need for housing never more apparent, its greatly welcomed to find articles like this helpling the layman find his way through what can be considered a complicated process. http://www.richardhicksdevelopment.co.uk can advise on this process, help gain permissions and hold the land owners hand if needed. Happy to help if anyone needs further advice following this helpful article.
Once we have completed our title examination and have established that there is clear title to the property, we will coordinate with you to set up closing. A title professional will prepare the necessary documents for you to sign, notarize, and return to them. Once the signed and notarized documents are received, the agreed upon funds are distributed and you get paid! Our process is simple, straightforward, and typically takes about 2-4 weeks to complete.
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.
Investors look for future potential. A priority would be to look at a municipal developmeant plan to see if the property is within a plan area. Personally, I would never invest in land that is not already under a municipal area structure plan. If you want to take a risk, you could look for land that was in the obvious path of development and be prepared to hold the land for a very long period of time.
I am looking at a property in Spanish Fort, Alabama. The neighborhood development began prior to the 2008 crash and sat for years. A house has started being built on a lot in 2013. A crack formed in the foundation of the house, and a stop work was ordered by the city. At this point my thought was to buy the property, scrap the house (its still sitting in the beginning stages after 3 years) and start over. The property now has made a mess in the neighbors yard for a over two years. 1) can the run off problem be fixed (its a huge mess) 2) how can a person get copies of photos (topography) of the property before the development started by the builders? These copies would have been from around 2006. I heard seeing the natural lay of the land could be very important when deciding if this run off problem is fixable. Thanks you for any help you can offer. I am just fearful of purchasing a huge nightmare that can’t be fixed.
Be sure to use visual tools to tell the story of your lot or land in your online listing in a beautiful and compelling way. You can’t show photos of a kitchen or great room, so be creative with your lot or land photographs. Use attractive photos of the home site, natural features of the land, the view from your property and even community amenities (see tips for creating great photos for lot and land listings). Use maps and surveys to show the property boundaries and where it is located. Learn more in our related article about 5 tips for selling lots or land with online listings.