This website gives sellers the option of listing their properties on the MLS for a flat fee (without signing a contract with a real estate agent). Granted – this extra feature isn't free, but it's a nice little premium tool that isn't offered by most of the other platforms on this list – and considering what a HUGE additional audience the MLS represents, I thought it was worth pointing this out.
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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.
In terms of an investment – I only buy land when I’m getting it for FAR below market value (which basically guarantees that I’ll be able to sell it some day for more than I paid for it)… and it doesn’t sound like that’s necessarily what’s happening here. If you think you’d be able to use it for something that would increase the overall value of your current property, then it may make sense… but if not, then it may not make the most sense from an investment standpoint.
The gross value figure per acre that the land is worth once it has planning consent in your locality. This is normally referred to as ‘the headline price.’ Developers generally make deductions of up to 10-15% to the headline price to cover the costs of their efforts to secure consent. It’s very rare indeed for a developer to offer a landowner 100% of the headline price!
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.
Prospective buyers for your undeveloped land are likely to have a multitude of questions. Prepare your information about the land ahead of time to be as informed and helpful as possible during the sale process. Buyers who anticipate building a home on the land will want to know about current or future access to public utilities and options for a septic system. Buyers more interested in recreational use will ask about zoning restrictions and seasonal weather conditions on the land. All types of buyers may have questions about nearby services, such as hospitals and commercial centers, as well as the quality of cellular reception on the land itself.
Hi, Viz. That really is going to depend on your local laws and any possible restrictions related to the land, as well as the best size to make the new lots appealing to builders and home owners in your local market. You should get in touch with local real estate experts in your market, like a surveyor, attorney or real estate agent with lot and land expertise to help you better understand the local regulations and the most marketable lot sizes for your subdivision plans. Good luck!
Thank you for the 50 creative ideas to sell your property fast. With how large social media has gotten there are now so many different ways to list your property so it’s seen. Craigslist, KSL, even Facebook to name a few and that’s not even including the list of sites specifically for selling a home. I think having your house up on multiple sites is a great way to get it noticed and sell fast.
As you are aware, we have worked worked with Land Century since its start back in 2006. I wanted to thank you for all your professionalism, the quick follow up, the integrity with how you operate and for helping us buy and sell hundreds of properties across the USA. As you know, about two years ago we directed all our lots sales and purchases exclusively through your office. You continue to be a great partner and I look forward to many more years working together.
Hey Seth, great info in this article, a couple things I didn’t take into consideration. I’m looking into purchasing approx ten acres which has federal land to one side and state land on the other two sides. This seems to be a good deal as far as no one building around the property and being a secluded tract. Just wondering if there is any specific things I should be paying attention to, do to the bordering of state and federal land.
We worked with Terrell Wade at First National Acceptance and things couldn't have been easier. He was great. They are a no pressure, high efficiency organization. The entire transaction was painless on our part and we were surprised at how quickly we received payment. These days where customer service is almost a distant memory it's refreshing to work with a company that excels at it. I wouldn't hesitate to work with Terrell and First National again.read more
These can include a requirement that you dedicate part of “your” land that is in the road right-of-way to the local government, causing you now to be working with a smaller parcel. Other rules may require you to build or improve roads, sidewalks, curb and gutter and even to plant trees. In addition, you also may be required to install water and sewer connections and meters for the lots, or to pay capacity fees, impact fees and other assessments when adding the new homesites.
I am looking at 95 acre property for hunting and camping listed at $132k in southerm PA, property will be timbered before sold and closest electric pole is approx 1/3 mile away from where i would build small cabin. I could use a generator since cost to run power would not be feasible. I am still interested but think the asking price is to much since this is not really a buildable property and has limited market value. typical buildable property with electric access is approx $2k an acre in the area. What should I offer? I was thinking possibly 95K?
I have a home on a lot that is large enough to be subdivided. I met with the city to discuss subdividing and they said that each lot needs a 20′ street frontage (currently I only have a 20′ street frontage. They said that I can subdivide if I put in a drive tract to the subdivided section. However, they would consider the drive tract a road and as a result I would need to remove an attached carport because the rules indicate that a house needs to be 20′ from a road. The only reason that I need the drive tract instead of a typical driveway was to create the 20′ street frontage.
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If an application is turned down, it is usually because access to the site is difficult or it adjoins a main road. The ideal building site has frontage on an existing road. As little as 30 ft to the side of your house can provide enough land for a new house, although permission is more likely to be given on tight plots if existing houses in the street are closely packed.
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.
I am considering buying a quarter acre, to build a house for my retirement in a few years. I have never bought land before but it is in an area that will definitely increase in value over the next few years so I want to lock it down now and build the house I want later, rather than purchase a home and make payments in addition to my current home. Thanks for the tips on how to assess, my question is whether I should use a realtor and/or get a property appraisal. I will probably pay cash for the land. Thanks much!
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.
We currently own 10 acres of land with a lot of road front footage. A very large nice development is underway adjacent to our property; the developer also recently had some type of auction and sold 92 lots. It has been brought to the attention of my husband and I that no homeowner construction can begin until development access issues are resolved. Presently, they have issues with line of sight entering into and out of the development; the development has a small privately paved 2 lane road entering onto the public highway system. Our property sits high on a small hill, it is large enough to occlude site to the left when pulling onto the highway. Our home also sits on a curve. We also have fencing – similar to what you might call pasture fence – that also occludes a drivers site pulling out as well. The developer has sent a neighbor (also his friend, may even be a partner) – who lives in the only house built in the development – although how they built that with restrictions in play – I do not know… Maybe because it was a single dwelling??? It was there before the current developer purchased it from the previous developer (who built the home in there as a “spec house”. First, this representative showed up saying they would like for us to move our fence and they would pay for us to move it (how kind). We just listened… And told him we like our fence just where it is – we know that even with the fence moved the line of site is still occluded – the hill would have to come down or be graded somewhat for it to work. 92 homes would also generate a lot of traffic. A turn lane was mentioned but no details were given – in fact no plan was presented at all. We think he was just feeling us out. My real question is how much should or could we ask for the property if we agreed to whatever their plan is – of course, we would see the plan proposals and bring in a lawyer. I don’t know how to begin to calculate it! I have considered 92 lots multiplied by something! Maybe 20,000 each? My husband spoke with a member of the NCDOT who was out here doing some surveying – he stated that the DOT really had no interest in the property – I want to take that to mean they would not force access for the developer – but I do not know – my knowledge is very limited on this subject. Bottom line is they are in “a real pickle” if we decide not to accommodate/sell them the needed frontage. No money has been offered – it was just stated that we would be compensated. It seems we are in the position of power as far as a selling price – as they cannot develop without meeting those requirements. What would/do you advise and what resources should I use to educate myself. I have found the Policy on Street and Driveway Access to North Carolina Highways and been reading over it. I really do not want us taken advantage of either as far as the construction phase and the end result to our remaining front yard.
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.
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If you are a potential buyer looking to purchase property directly from a seller - Many properties are available across the country and outside of the U.S. including vacant residential lots, large acreages, homes and ranches, hunting and fishing properties, investment properties, land ready for development, commercial buildings and much more. View Listings.
Tenants. Informal arrangements with tenants can also pose a problem when it comes to selling. If you let any buildings to business tenants they should be on proper leases which are contracted out of the security of tenure provisions of the Landlord and Tenant Act 1954. Any residential tenants should be on Assured Shorthold Tenancies. For agricultural tenants, make sure they are on licences if appropriate or Farm Business Tenancies under the Agricultural Tenancies Act 1995. Bear in mind the long notice periods and that compensation may also be due for these tenants. Agricultural tenancies that were granted before 1 September 1995 are likely to have lifetime security of tenure and if they predate 12 July 1984, successors can also be named by the tenant so that up to three generations can farm the same land. Compensation will also be payable on termination for any tenant improvements to the land. Again, it will help to have all the paperwork accessible and to hand.
If a property doesn't pass this test, you could have a very difficult time building any type of dwelling on the property, so unless you're able to tap into the municipal sewer system (which will negate this issue altogether), be sure to give the county health department a call and ask them what is required to install a septic system (or connect to the local sewer) in your area. For a detailed overview of how a perc test works and how to verify the status of this issue, check out this blog post.
Hi Colt, whenever I buy landlocked parcels, my offer is VERY low (because practically speaking, if nobody can access it, it might as well be on the moon – which isn’t all that useful UNLESS someone can obtain legal access). One way to prove that it’s landlocked would be to find a parcel map of the property – and I explain how to do that in this blog post: https://retipster.com/property-pictures
I have an opportunity to buy 53 acres of recreational land. 9 of the acres is a pond and another 16 acres is CRP land. I was thinking about sub dividing these lots for a private campground. I currently own a single lot in a private campground about 70 acres and most lots are .18 ac that sells for $4000 each. I am looking to do the same as the owner did years ago, but with possibly my own piece of land. Without tipping off the owner on this opportunity, land for sale, what problems may I encounter, or unforseen costs will I run into?
This is a great article! I agree that there is a lot to take into consideration when investing in land. Most people fail to realize as well that investing in land is most time, if you find the right deal even better than buying properties already constructed on a piece of land. People also forget that there are many expenses involved in developing vacant land to be “usable”. All of the points made here are extremely important to consider and one should do extensive research before purchasing any property and ask yourself these 15 questions mentioned above before purchasing. I have done lots of research and have bought properties in the past, the best company/website in my opinion is http://www.cheaplands.com I have never seen deals like theirs in my real estate career.
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 Dave, thanks for stopping by. You’re right – it’s very hard for me to give you any concrete opinion on this (because there are a lot of factors to weigh with any piece of vacant land). I’d say if you’ve looked at all the potential downsides and established that there won’t be any issues from that end… and if you’ve got a fairly decent idea as to what the property is currently worth (and you’re buying it for a price that is significantly BELOW that number), then sure – there probably is a fair chance that you can make money on it.