I am a relatively new real estate agent and just got a land listing. This is a great article with many helpful strategies for selling land. I think selling land can be a bit intimidating because most sellers have such high expectations that you will sell their land for them quickly and it usually takes much longer, as you pointed out in your article. Thank you for the great information!
You mentioned that the adjacent development already is “underway” and that the developer recently sold 92 lots. This makes me wonder why the developer would be coming to you now about roadway frontage for a turn lane. Usually the road improvement plan is in place prior to the subdivision being formally approved and recorded and the developer secures rights to all of the land it needs for turn lanes in advance. The existence of lots in this development suggests that the road plans already should be approved. Get information from your local planning or subdivision department (as applicable, or possibly the DOT) and see if you can find the plans for offsite road improvements for this subdivision. It’s possible that there was a lapse in the planning process — or that the original roadway improvement plans have expired if the project was abandoned during the downturn — and the need for land for a turn lane has recently come to light. Do your research to understand the facts.
Hi Marie – I think it depends almost entirely on how much you paid when you bought it, and how much you can sell it for (with or without any improvements on it). Improvements will often improve a property’s value, but not always. You need to understand what the highest and best use of the property is and THEN you’ll be able to zero in on what the property may be able to sell for based on how it will be used.
If you want to investigate the situation on your property, you could always order an environmental report. They can either do a high-level look at it (without doing any soil sampling), or they can drill soil borings to verify if there are any chemicals in the soil (which of course, will cost more). I’m guessing you could find out more on whether or not it’s an issue to be concerned about with a quick phone conversation.
Sell your land to a speculative investor. Many areas have investors that will buy just about anything as long as it is cheap enough. These investors can close quickly, but will frequently offer you a very low price for your land. That's how they're able to move so fast -- they're getting a great deal. Investors usually won't require you to finance the land for them.
The modern real estate housing market fluctuates on a daily basis. While houses typically sell quickly, most vacant land parcels are stagnant and can be difficult to sell. Land owners can find it nearly impossible to sell their land. You will more than likely have possession of your property for a long time and continue to pay the real estate taxes while you own it.
ClassifiedAds is another free listing website with a similar look and feel to Craigslist. You aren't required to maintain an account here, and the ads on this site also come with a nice little inquiry form at the bottom of each listing – so it's one less step for an interested party to contact the seller for more information. The listings also allow sellers to link to third-party websites, which is a nice little extra feature you can use to send extra traffic to your selling website.
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.
I suggest you go to your local real estate clubs and get more buyers there! You know, its like if you wanted to find a job really quick. You can go to several head hunters, several temp to hire agency, and you can put all these people to work for you - for not a dime of your money. Thats what I call people leveraging. When your at home, you are going to have several people calling you back to tell you about offers they have for you and you can then cherry pick the offers and take the one that best fits you. Real estate clubs are full of people who want to find you buyers - these people are called wholesalers. And guess what, you can have as many as you need. I say, work smart not hard!
About 15 years ago the best way to market your rural land was either a classified ad in the local paper, signage off the highway or the local pennysaver. Larger companies would use radio or some other direct marketing technique. All of these marketing strategies were slower and more expensive than the options today. I know we all like to complain about inflation but in terms of online marketing we're in a deflationary environment!
Hi Aracely – great question. You might want to contact the local planning and zoning department – ask them if you’re allowed to camp on the property and/or build whatever type of structure you’re planning to build. You’re right – most townships and cities (not the county necessarily) have different restrictions that come into play in different areas. You’ll probably find that the more rural areas have less and less restrictions, but generally speaking – you should always investigate, because some rules will most likely apply.
Honestly, since you’re the buyer, there’s no real reason not to use a realtor (because they’ll take their money from the seller, not you). I’d just be sure to get one who knows their stuff (i.e. – make sure they have some level of experience dealing with vacant land, as it’s a whole different animal than what most realtors are used to dealing with).
Settle on a price that is acceptable to both parties. But don’t exceed the price you initially set as your maximum amount to pay. No property is worth paying more than you can afford. "Decide what a transaction is worth to you. A property may be worth more in value to you than the actual appraisal. Take the emotion out of it and deal with it in terms of dollars and sense," confers King. And, "don't be afraid to walk away from a deal, just do so with a handshake and a smile and do not burn that bridge."
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.
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.
Hi Debbie – that’s an interesting question… I’ve never heard of that one, but I suppose I can see why you might wonder. I’d have to imagine any harmful chemicals from a cemetery would be in extremely trace amounts (nothing like you’d expect from a gas station), but at the same time… I’m not an environmental professional, so I’m really not qualified to give my opinion on it.
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.
And I know what you mean about the assessed value – this number means almost nothing in my mind, because the county will usually peg this number as high as possible, because it allows them to charge more in tax revenue for the property. I think you can get it reassessed in many cases, but there usually aren’t any guarantees that your request will get traction, and the process isn’t necessarily fast or easy. It may be worth your while to call the local tax collector and just ask them how much the annual tax bill is – that should tell you pretty quickly what the obligation would be.
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).
Double check ad data for any property you’re considering; they’re often full of mistakes – not necessarily misleading information, but it comes from laziness. What doesn’t help is that when a listing first gets posted, apparently nearly all real estate websites post it as their own without checking it for accuracy. For example, we’re considering a property that has multiple issues:
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).
Negotiating: A good agent can help you navigate the negotiation process and give you perspective on what to offer and what to accept in order to help you reach an agreement with a potential buyer. Negotiations are often tense and can become emotional. The agent serves as the go-between, and is paid to defuse and diffuse the negotiating process. A man that I showed land to last week, was planning to sell a property he owned and do a 1031 exchange into a property I have listed. He told me about a cash offer on his tract that was “as good as in the bank” for about $350,000. One of the owners that adjoined this man’s property had made the offer about a month before he came to see my tract. His adjoining owner called back yesterday and dropped his offer from $350,000 to $315,000. Had I been his agent, I would have advised him when the offer came in to go ahead and accept it. His delay in accepting the offer probably knocked him out of buying my listing which he liked a lot.
We have been working with Land Century for almost a year now and have had a great experience! Land Century gets us more leads than any of our other marketing efforts. The people that contact us through their site are real and are interested in the land we are listing. Land Century has been easy to deal with and has always performed with integrity. We look forward to working with Land Century for many years to come!! Thanks Land Century!!
Once we have come to an agreement on the sale of your property, we will prepare a basic purchase agreement. Our typical process uses a very simple and easy to use digital-signature platform to save both the time and hassle of having to send mail back and forth. Agreements will gladly be mailed to you upon request, however most people prefer the speed and simplicity of our standard process..