Offer owner financing. Land is usually hard to finance and if you're willing to take back a mortgage for the buyer, you'll expand the number of people who can buy your land. On the other hand, you're also taking the risk that the buyer won't make his payments and will default. To protect yourself, work with an attorney to draft strong legal documents that follow your state's laws and get as much money up front as is reasonably possible.
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 email@example.com.
Calculate all of the costs to bring the land up to the condition you would like. What is it going to cost you to build out the property? That is the cost of acquiring the land, the entitlement, the cost of construction of the land, the cost of marketing to people to build it up if it is a retail space, plus the cost it takes to secure any money (i.e., loans)? You also have to factor in a reserve for costs associated with things such as air conditioners, wall coverings, and so on, says Veissi. "Those things have a shelf life, so, they are going to take x amount of time before they need to be replaced."
Great article. I’m having trouble finding information, as most of it is about buying and constructing right away. I’m looking for information on how to buy a rural piece of land 2-10 acres where I can camp on it for a couple of seasons to get the best site to build a little summer/fall shack to get away on the weekends. So I won’t be building right away, just ‘squatting’ on my own land for surveying purposes, see where the hottest/sunniest spots might be, etc. Do you have any advice on what regulations/restrictions I might come across? Is this a “depends on” on kind of thing, meaning, different counties/townships all might have different rules? Thanks again.
Seth, I can definitely see how internet marketing would be extremely useful when selling your property. My wife and I have been planning on selling our house in order to move to a much more family friendly neighborhood. I think that we should consider finding finding a real estate agent that could help us to sell it exactly according to our desired asking price.
Hi Steve…great article! In my village there is a 1.4 acre lot that is of interest to me, but I don’t want the whole thing. I am only looking at about a third of that. Problem is…the entire 1.4 lot is owned by our local school district and the administration building sits on the front part of it. The backside of the lot (the part I am interested in) is totally unused and mostly wooded. There is a very distinct treeline to where the lot could be divided. How difficult would it be acquire that piece of land behind the building…given it’s owned by the school district?
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!
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If you have chosen to sell your land privately, then you need to know that there are several ways that you can advertise your property. The absolute easiest way is to put out a ‘For Sale By Owner’ sign. This might give you better results than you expect. Many people searching for land simply get in their cars and drive around looking for a for sale sign. Make sure that you have some contact information on your sign.
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.
Although the process of selling land is less complex than selling a piece of property with a home, this is still a process that requires the help of a professional. Real estate laws vary from state to state, so its important to work with an experienced real estate attorney when selling your land. The help of a professional becomes even more important if youre creating a land contract.
You have to be careful, however, that the access road you create cannot also be used for subsequent developments in neighbours' gardens. Otherwise the developer, having bought your garden, will knock on your neighbours' doors and buy several back gardens. If this happens, Mr Noel said: "The access road beside your house, which you thought was only going to be used by a couple with one invalid carriage suddenly becomes the way into a development of 30 homes."
Just wanted to thank you for the help you provide to everyone here.I live in Europe and would like to buy a 2 acre to retired on a mobile or prefab cabin on it ,using the land as a small homestead but would you buy when you are not even in the states?I would use golook to check the property but Im scared or doing such a move.I found a 1acre owner finance and Im tempted.
Just like you'd stage a home, you want the vacant land to show at its best. A lot overgrown with weeds is going to look less desirable in the eyes of a potential buyer than a lot that's apparently cared-for. Professionally trim trees, mow grass, remove weeds and perhaps plant wildflowers to show the property at its best. Visit the property weekly – or hire someone to do so – to remove windblown trash, beer cans, fire rings or anything else that might detract from its curb appeal.
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!
My only real complaint with Zillow is with their video feature. While I'm certainly glad they provide ANY options to add video (unlike most of the free listing sites I've come across), I'm not a huge fan of their 2-minute self-shot video option. It's not easy to show a property in it's best light in under 2 minutes and/or by only using the camera in your pocket. It's unfortunate that they don't offer the ability to upload or embed a higher-quality, better-produced video. If they added this option, it would be a MAJOR improvement to their FSBO listing platform.
We buy land fast from people for many different reasons. Unlike what most people guess, it’s actually not usually from people who are trying to avoid foreclosure. In reality, most land owners just have a piece of property that they really can’t use. It’s also really difficult to sell most types of land, unless it’s something you focus on……like us!
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."
It is not unknown for restrictive covenants to ban, for example, the keeping of dogs at a property, though the more restrictive covenants you put on a plot, the more they affects the price you will receive. As a rule of thumb, developers expect to pay one third of the value of the finished development for the plot. So, if a £150,000 house can be squeezed into your back garden, you should think in terms of receiving £50,000.
If six stars were possible, Terrell Wade and the team at FNAC would deserve that high of a rating. Terrell worked with me on purchasing a deed of trust that was part of my parent's estate. The transaction was tricky because of paperwork complications, that the house was now a rental, and that the owners spoke no English. Terrell patiently guided the owners through the process, had to reassure them at several times, and successfully closed the deal even though it took nearly 6 months. The price we received was fair and I cannot speak highly enough of the work and end result that was accomplished by FNAC. S,T,White, Manager RCR, LLCread more
The hard part, however, is getting your neighbours on board if that’s what you’d like to do. Offering a developer a larger parcel of land can be more profitable for them, and therefore more lucrative for you. This will require negotiations and time, possibly between yourself and your neighbours or between your agent and the neighbours. Be prepared that not everyone else will want to sell, even if there’s a big payout promised. Make sure that the extra effort will be worth the final sales result by comparing an estimated selling price for your home with what your portion of the sale will be if you sell to a developer.
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.
I’m sure it could be done. I actually live in a subdivision that started exactly like how you’re describing back in the 70’s. I think it can be a pretty big speculative gamble unless you’re absolutely certain that there’s a huge demand for what you’re creating… but if you end up being right, you could easily make millions (depending on how big of a project you’re looking at).
There are many reasons people decide that their vacant land has become a burden and they need to sell land fast. For some, they no longer have a need for it, and they would rather cash out of the property. For others it is the cost associated with paying the property taxes on the vacant land. Finally, some will sell because it wouldn’t be cost effective to keep it, and the value has dropped significantly when the bubble burst in 2008.