Thanks Ann! I’m so glad you got some good value out of it. I think you’re probably on the right track in getting outside help with the zoning details – that can be quite a confusing area if you don’t have any prior experience with it. If you have a builder in mind, you may want to get them involved on the front end too – as they will be able to point out most of the important details you’ll want to evaluate before they’re able to start building (even if you don’t plan to build for a while, they’re still great for some free consulting if they’re expecting to help you at some future date).
Undeveloped land without significant zoning limitations is open to a variety of uses. Reach out to all types of buyers who might find the land appealing. This may include home builders, private individuals looking for land to build on, park or camp developers and environmental groups that want to keep the land undeveloped. Reach out to the owners of adjacent land to see if they want to add to their property. Advertise in different publications and websites, not just in local real estate magazines targeted at people looking for new homes.
I recently had the opportunity to work with Grace Chang regarding the partial purchase of a note that I brokered to FNAC in 2015. Grace informed me, out of the blue, that FNAC would purchase an additional partial, or the full remaining balance, if my client was interested. I contacted my client and she was very pleased with the offers from FNAC. My client happily opted to sell an additional partial, and, thanks to Grace's knowledge and professionalism, the transaction was completed quickly. Grace Chang is a pleasure to work with!read more
I’ve taken this route plenty of times, but I was always making my decision from the perspective of an investor (to buy and re-sell the property quickly)… not necessarily as the end-user (i.e. – buying a property that I would actually live on), so if there are some specifics that YOU would want to see, then it may be worth your while to get over here are see it.
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.
I think I’m in trouble….because I signed a contract for a 1.23 acre land and I haven’t ordered a perc test…the land couldn’t perc about 8 yrs ago according to the owner…. the piece of land is near other homes, that are build on an acre of land or more…. it is near a state park as well…. There is a stream called gunpowder that is near this area…. I am scared to death right now…. my contract doesn’t have a contingency to a perc test passing…it is full of trees too. So I know the land needs to be cleared… in your experience is there a way to cancel a contract or a way out….the contract has already been sent to a title company….. I need help asap…. thanks
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.
Alternatively, you could talk to the county health department about doing another perc test – just because it failed once doesn’t necessarily mean it’s impossible (though it is a fair indication that you won’t have much luck). You could also try investigating some alternative septic options, like building a mound septic system. I don’t have any experience with these, but it could be worth your while to investigate it further.
If you truly are in a hot area, which it sounds, your land has already been researched and investigated and deemed not to be desirable to the surrounding developers. A one acre parcel in the realm of larger subdivisions going in is only desirable if it's IN THE WAY, or if your house is an eyesore that will affect the marketing of the bigger development (which I'm guessing your house is not an eyesore).
Always offer to ‘show’ the property to prospective buyers. It’s an obvious step for home sales, but some people neglect it for land sales because they believe there isn’t a lot to really show. That’s the difference between a strong seller and a poor one. To be a successful salesperson, you’re always selling. You want to show the buyer the property lines, and then, lead them out to see the neighborhood, local businesses and other aspects that could seal the deal.
When you sell land by yourself, this is called a private sale. So, you will need to find a private buyer. It may help you to talk with local farmers if you are looking to sell raw land; farmers have all kinds of experience in purchasing land for their crops. If you are selling your land on your own without the aid of a real estate agent, this next section is for you.
We hope this helps provide valuable insight for landowners about the pros, cons and items to evaluate when considering subdividing your land. Check back soon for our second article in this series about Subdividing Land: Tips for Landowners from a Developer, where we will describe some real world issues that we have seen in subdivision attempts. Plus, the third article in the series will provide hands-on details about the steps to take if you decide to subdivide your land into lots.
In addition to online listings that target lot and land buyers, effective property signs always should be part of your marketing plan. Don’t just use a standard “For Sale” sign; we suggest that you have a sign custom-made for selling your lot or land (which can be done relatively inexpensively these days). You can help tell the story with your custom signs by including a few key points like acreage and property features. The sign(s) should be located for visibility, look professional and be kept clean and upright.