A farmer may want to expand his or her land, and your 3-acre lot is perfect for grazing. If you have land that is in a residential area, your neighbor may want the opportunity to have a bigger property and will buy your land for premium since it is adjacent to their land. And these are people you probably know and trust, which makes the entire sales process more pleasant.
Here are reasons why I believe an Exclusive Listing Agreement is better for the seller when it comes to selling land. (Let me preface all of these reasons with the assumption that you have researched prospective listing agents with experience in selling land and you are only going to deal with ones that appear to be qualified and have good reviews. For more explanation read, “Not All Agents are Competent About Land.”
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.
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.
On the surface, it seems like such a simple creature – but there can be A LOT of potential problems lurking beneath the surface of any piece of land. I wouldn't necessarily say all these issues are common, but the fact is – any one of these things could potentially be a deal killer if not addressed properly. When you take it all into consideration, it adds up to a sizable list of things that ought to be investigated as part of your due diligence process.
I have a brokerage in Indiana, Kentucky, and Tennessee that focuses specifically in land, so what I have done is created a nationwide advertising service to attract more buyers. I advertise on several investor channels like CNBC, Bloomberg, Fox Business and then also channels watched by people interested in land and the outdoors like the Outdoor Channel.
Your buyer profile can depend on what type of property you are selling, whether the land has been developed already, its location and market conditions, among other criteria. Is your likely buyer an individual looking for a lot for a new home? Or is your buyer going to be a builder or developer looking for land for their next project? Or is your buyer some combination of those, or someone different altogether? There may be different buyers for finished lots, rural acreage or a parcel of suburban land in a thriving new home market.