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.
Mortgagee’s consent. If your land is subject to a legal charge you will require the lender’s consent to the sale. If you are selling off part of a larger parcel of charged land you will need to obtain a release. This might mean the renegotiation of your financial arrangements, which again, is sensibly addressed early in the transaction. Speak to your relationship manager and your solicitor.

Devon Thorsby is the Real Estate editor at U.S. News. Since joining the Consumer Advice team in 2015, she has focused on breaking down the homebuying and selling process, as well as reporting on trends in the real estate industry and their effect on the public. Thorsby previously worked in research and communications for commercial real estate information company CoStar Group, and received her bachelor’s degree from the University of Michigan, where she worked for the student-run newspaper, The Michigan Daily. You can follow her on Twitter, connect with her on LinkedIn or email her at dthorsby@usnews.com.
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.

These are the questions I ask myself before I buy any piece of vacant land. This isn't intended to be an all-inclusive list of EVERY possible issue you could ever encounter, but I’d say it covers about 95% of the potential concerns you ought to be aware of. Most of these issues come up very infrequently, but they are very important things to consider nonetheless. Remember, you don't need to be afraid of buying vacant land. You just need to be informed.
When you are buying and selling lots and land, working directly is often the best way to go. Agents don’t typically put in the time or energy that they’d put into a selling a house. Comparatively, the commissions are low, and the land market is slow. When a parcel is listed on the MLS, the price is often inflated to cover commissions and other fees that will offset the seller’s profit. Typically there is less money and less effort put into marketing a piece of land, so it ends up sitting there, with the price being slashed time and time again.
If a property doesn't have access to one or more of these staples of reasonable living, the property (for all intents and purposes) may not be considered build-able. After all, who would want to build a house where they can't flush the toilet or get access to clean water? If a property isn't build-able, you will lose a massive portion of the property’s usability, marketability and value. Since most people buy land with the intent building on it, you will definitely want to be aware of anything that could become an obstacle to that objective.
No matter whether the thought has occurred that I want to sell my land online, or you are open to selling it any way you can, be sure to take the time to make sure the land  is clean, and have any debris removed. Do some basic landscaping to make the land look more appealing. If you wanted to buy land yourself and it looked unkempt or overgrown you would most likely have second thoughts about that particular parcel, the same will be for those interested in the land you want to sell fast.
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.
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.
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.
Something I appreciate about the property listing platform on this site is that you can enter in A LOT of deal-specific details that real estate investors are going to care about, as explained in this video (e.g. – costs associated with owning the property, cash flow details, zoning and uses, etc.). I also really liked the ticking time clock at the top of each listing, as it helps instill a sense of urgency/scarcity for anyone who wants to take advantage of the deal.

I should have asked about the other improvements as a different, side question. The property, just under 2 hours from where we live, is close to a large lake, that I wouldn’t mind going to more often for fishing and boating. The thoughts were to, until the property is sold, provide a spot for our rv on long weekends, so having a access, water, electric, and even some type of a septic field would be ideal. A better question would be which of these improvements could we reasonably expect to recover when sold, keeping in mind the exact placement might not be where a new owner would want them.
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.
With the Arizona housing prices climbing up to pre-crash levels and single family homes being snatched up by investors to flip or rent back to millennials, do you think buying raw land now is the best strategy ? In my opinion, the fact that its hard to generate income off of raw desert land many investors pass because there in no rate of return. Million dollar homes are within a few miles of these parcels I’m looking at and i can buy a 2.5-5 acre parcel below 250k. I want to park my money in land because i know this area is up and coming vs risking it in the stock market. I would sit on the land for 10-20 years before building. Am i crazy or just see something a lot of other investors are missing out on? Also, small washes on parcels are not a huge issue right? I avoid anything that falls in a flood plane
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 the very least, your land contract should include the address of the property and a full legal description of the land. It should also include the down payment amount, purchase price, the number of payments that will be made, the monthly payment amounts, and any balloon payments that may be required. You may also consider creating and attaching an amortization schedule.
Two things I liked about this site was the fact that users are able to include YouTube videos with each listing AND link to outside websites (something I wish all listing websites would allow). Another unique feature is that FindMyRoof also allows visitors to click the “Flyer” button on each listing and generate a nice, printable version of each ad.
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.
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..
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