This all boils down to how badly the developer needs your home, how much money he stands to gain by moving quickly and how robust the multi-unit housing market is. If the final offer falls a bit short of where you’d like it to be, factor in the negatives of staying: more construction noise, additional traffic and all the dough you’ll have to fork out to comfortably remain there. Realize, too, that condo prices, in particular, can be mercurial and turn on a dime if the greater housing market starts going south, which might give your buyer cold feet.
anyone interesting in commercial land on busy road? very close to i279 north of pittsburgh pa area and its permit allow to rebuild home or parking lot or something of business as well. last price value is 12 k but not sure what it is worth in value it is on 3856 east street... 15214... 2041 sq feet formerly warehouse was there and the land is cleared out... with fence...
Offer owner financing. Land is usually hard to finance and if you're willing to take back a mortgage for the buyer, you'll expand the number of people who can buy your land. On the other hand, you're also taking the risk that the buyer won't make his payments and will default. To protect yourself, work with an attorney to draft strong legal documents that follow your state's laws and get as much money up front as is reasonably possible.
Very good question, Trevor. We plan to do a blog article on this subject soon. You are pretty much on the mark with your example of 25% of the final to-be-built home’s value as a rough guide to a lot’s value. You’ll see that some markets use different valuations (even within the same city or region), but in many markets an estimation of the value of the lot generally can range from around 20% of the home value (for more rural or lower price point homes) up to around 30% or more (often for higher end communities or for urban/infill areas with less lot supply and higher home prices). Of course for some lots/properties these rules simply don’t apply, like oceanfront lots or land with other unique characteristics.
Grace Chang is amazing. I had to sell a land contract and was very concerned that our buyer would be happy with the new arrangements. Grace's helpful and caring attitude made all the difference. She walked me through every stage of this difficult process and everything turned out perfect. She was very professional, knowledgeable, and focused on the task to be done. Thank you Grace!read more
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A large piece of undeveloped land may get you the greatest return if you subdivide it and sell each parcel separately. Have the land surveyed to determine which parcels are suitable for home building, which have other uses and which are likely to remain undeveloped. Keep one or more parcels for yourself if you still want an investment stake in the land, in case its value rises in the future.
If the neighbor isn’t interested, the next best option is to go to your buyer’s list. “What I like to do every single day,” said Mark, “is [to] do something to create some value or educate people on the benefits of owning raw land.” Then, he will end the content with a call-to-action. Two example of calls-to-action would be, “If you want to learn more, just opt-in here” or “Get $250 off your first land purchase.”
We own about 4 acres with a house on it and a land locked property adjacent to ours is for sale. The owner came by to offer it to us for that reason. It is a 17 acre raw piece of land with a creek and cliffs really is a beautiful property. The town values it at 18K with annual taxes of about $600. He wants 25K for it and has owned it for about 50 years. The value to us is as a private wild life refuge which we could hike and camp. It’s in the Hudson Valley and close to transportation to NYC. We plan to be in our home for at least another 15 to 20 years. Would this add any value to our home or be an asset at the time we sell our home?
We are India's fastest growing online real estate marketplace, Born out of the need to rearrange the look for a home, free of phony postings and interminable site visits, we made an unique property seek stage that filled the gaps left by others in the market. Led by passionate issue solvers, and supported by top investors from around the world, we are ready to wind up the most trusted set up to locate a home in India.
Successfully subdividing your land into residential lots can have many benefits, including providing a landowner both increased profits and flexibility. If you are buying or already have a large parcel of land for sale, or even a home lot that has “extra” land area, you may wish to consider whether subdividing your land can help you maximize your real estate resources, something that many landowners are evaluating in the current market conditions.
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
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.
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.
Keep in mind, using the Wetlands Mapper and/or the Web Soil Survey is NOT the same thing as hiring a wetlands consultant and/or having the USACE do a delineation on your property (so realize, there are no guarantees with this approach). However, if you're just looking for an educated guess, both of these online tools can be used as a starting point.
Land Agents have Expertise: True land professionals know how to price and market properties effectively. Any agent you are hiring should be able to clearly articulate their strategy for selling your property. A good agent will employ multiple prongs for engaging prospective buyers, including advertising in print media (when appropriate), on the internet in key places people look for your type of property, and other avenues such as signage or word-of-mouth. Good agents have a proven formula for attracting the attention of quality buyers. I have my own multi-point system that I use for each listing that generates results.
There are hundreds of millions of people passing through this site each month (with many of them coming from syndicated outlets like AOL, Yahoo, Trulia and more) and most of them are there with the sole purpose of looking for real estate to buy and rent. It's also worth noting that many buyers start their search with Zillow (instead of looking only at their local MLS listings), so it's a great way to gain exposure to a massive (and targeted) audience at no cost.
Your first point of contact will be your local council, They can tell you whether a precinct structure plan has been drawn up for the area, and advise of the process and timeframe of any existing masterplan. “It’s important to establish a rapport with local government,” Coutts advises. “They will be either your blocker or saviour. There’s no use having an adversarial relationship.”
I would appreciate your opinion about my situation. When I purchased my home on 5 acres twelve years ago, the builder included two acres at no additional charge. Both the 2 acre and 5 acre parcels are adjacent to each other. So, I have two properties with two tax bills. In the future, I plan to obtain a reverse mortgage, so I would like to maximize the value of my home by combining both parcels into one larger 7 acre parcel.
Hi Rainie, if it were me, I’d be most concerned about the septic system (making sure the property passes the perc test, if it’s not located near a sewer system), making sure it’s not in a flood zone, and making sure the property is zoned properly for the type of house I want to build. Judging by the fact that there was a house on the property before, you probably won’t find many surprises here… but it’s always good to verify.
Additionally, the land contract should indicate how many payments will be made, their due dates, grace periods (if applicable), fees for late payments, and how the buyer should deliver each payment. Under a land contract, buyers are usually treated just like a property owner, and will be responsible for paying property taxes, insurance, and any utility bills associated with the land use.
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.
Once you provide us with a few basic pieces of information, using our simple and easy to use Sell My Land Form, we will automatically receive a copy of that information and begin our review process. Using a mixture of county assessment information, recent local sales data, and research on comparable land properties in the area, we will determine what we’d be able to offer you for your land.