Hi Seth – very helpful blog indeed. I have recently been given the opportunity to buy the 6-acre wooded lot, zoned residential, that adjoins my already-owned 3-acre lot for $64k. I know the terrain of the 6-acres quite well as I’ve had to chase my dogs all through it when they get loose. On the back end is a power line right-of-way, so certainly nothing will be built behind it. It does have a site cleared for up to a 4-bedroom home, a “proposed” well location, and although the site will not perk, the seller has an off-site discharge permit issued from the Virginia Department of Environmental Quality for a sewage disposal system. The owner will finance, with $998 down payment and $688/mo for 10 years, but that comes out to a LOT of money for 6 acres so I would likely come up with 40 percent down on my own, and pay off the rest with a personal, lower-interest loan. My concerns when it comes to land, especially as an investment: would the monthly payment for the land not be better spent to pay down my existing mortgage? Or, would the monthly payment for the land not be better invested in something with a higher rate of return? Of course, from a diversification standpoint the land may make perfect sense. I live (and the land is located) in an area mid-way between Washington, DC and Richmond, VA – – – an area that is growing like mad. I have a tough time believing that in the 15 years I have left until I retire I would LOSE money on the investment. And unlike a 401k or an IRA, which can disappear overnight should an economy tank, land will never be totally worthless. I would not actually DO anything with the land (aside from perhaps harvesting some firewood) other than to HOLD it for 15 years until I retire and leave this area.
Remember, the goal is to get your listing in front of as many potential buyers as possible, and the buyers who browse on Website A may never think of browsing on Website B (or C, or D, or E). Since we can never know precisely where our next buyer will come from, it may be worth your consideration to look at what each of these options can bring to the table (and since none of these cost a dime, the only thing you stand to lose is your time).
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.
Market for Land is Less Active – The market for existing homes is almost always more vibrant than the land market. There simply are fewer numbers of buyers for vacant land than consumers looking for homes. Start marketing a new home listing and a new lot listing when both are desirable and priced well, and you generally can expect fewer contacts about the new lot listing.