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Selling land can be difficult compared with selling a home, but some pieces of land can be quite desirable depending on their zoning and resources. Price your land using comparable properties. You can also bundle your land with other parcels and decide if you'll offer owner financing, which will allow you to price the land higher than if you don't. Then, market your land for sale with the help of a real estate agent or on your own. When you get the offer you want, close the sale on your land with the help of a real estate attorney or on your own.
Steps
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Find out how much your land is worth before setting a price. You can hire an appraiser to evaluate the property and suggest a reasonable price, or do your own research and set a price based on the prices of comparable properties. Determine the value of your land by looking at the potential uses for the land (commercial or residential), considering nearby projects that might affect the land's value, and by comparing it to similar properties. [1] X Research source- For example, if a similar parcel of land in the area that was zoned for residential use sold for $50,500, but your land is also zoned for commercial use, you might estimate the value of your land at $60,500.
- Note that getting an appraisal is the best way to determine the value of your land.
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Consider combining the land with any other property you own. Selling land along with a structure or multiple land parcels may result in a better price than selling the parcel of land on its own. If you have any neighboring land or other parcels with or without structures on them, consider combining these parcels in one sale. [2] X Research source- For example, if you own 3 parcels of land in the same vicinity, you might sell all 3 together. This could attract a buyer who is looking to purchase a larger plot of land or who needs multiple parcels for different uses.
- You may also consider offering the land as a bundle or as separate properties and setting different prices for each option.
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Decide if you will offer seller financing . Offering seller financing, also known as a land contract, will attract more buyers since they won't have to go through the process of getting a mortgage to buy the land and you can usually set a higher asking price. [3] X Research source However, this means that you will not get the full purchase price for your land up front. Instead, you'll create a payment agreement with the buyers. They will need to make regular payments on a pre-determined schedule until the property is paid in full. [4] X Research source- For example, if the agreed upon price was $65,500, then the buyer will need to make regular installments to the seller until this amount has been paid in full. These payments will include interest and the buyer will also usually have to make a down payment to the seller.
Tip : If the buyer fails to make the land contract payments, you can file a land contract forfeiture. If the buyer is found to be in violation of the land contact, the buyer loses any claim to the land and any money that they already paid to the seller. [5] X Research source
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Do maintenance on your land to make it more attractive to buyers. If there is anything you can do to make your land look more appealing, do this before prospective buyers look at your property. Taking care of these tasks can help to increase the attractiveness of the property, increase your chance of getting an offer, and fetch you a higher price for the land. [6] X Research source- For example, you could do simple yardwork tasks, such as mowing the lawn and trimming bushes.
- You may also want to hire someone to do more intensive property maintenance, such as digging up a large stump or cutting down a dead tree.
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Hire a real estate agent to market the property for best results. A real estate agent, also known as a Realtor, works for you to help you get the most money from your property as possible. They will market the property for you, negotiate with the buyer, take care of the necessary documentation for selling the property, and advocate for you throughout the sale process. [7] X Research source- Keep in mind that while you may save some money on the sale by not hiring a Realtor, selling a property is a full-time job and it can be mentally and emotionally taxing to do without a Realtor.
- Real estate agents usually get a percentage of the sale price of the property, such as 5%. This means that if your land sells for $100,000, and the real estate agent is entitled to 5%, they will get $5,000 after the sale closes. However, if the land doesn't sell, they don't get anything.
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Advertise your land for sale on real estate websites. If you do decide to sell the land yourself, you'll need to market it aggressively to find buyers. Advertise your property on real estate and classified websites to make it easy for potential buyers to find out about it. Make sure that your posts include detailed descriptions of the property and lots of photos that showcase the land's best features. [8] X Research source- Note that you won't have to do this if you're working with a Realtor. They will take care of listing and marketing the land for you.
Tip : Social media is also a good platform to market your property. Share the listing on social media and invite your friends to share it as well.
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Tell friends, family, and coworkers about your land. Spread the word about your land for sale by telling everyone you know about it. Even if you're working with a Realtor, telling people about your land may help you to find prospective buyers. [9] X Research source- For example, you can give people your Realtor's card, hand out copies of the one sheet, or text them a link to the multiple listing service (MLS) page for your property. This will provide photos and information on the property.
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Look into selling your land to the government if that's an option. In some countries and states, you might be able to sell your land to the government. This may be a good option if you have a large plot of land in in a remote location. Your government may be interested in buying the land for its natural resources, to preserve the land, or for other uses. Find out what their requirements are for the land that they buy and how you can sell your land to the government if it's eligible. Contact your government via their website, email, or phone if your property is eligible. [10] X Trustworthy Source State of Indiana Official site for state-approved sources related to life in Indiana, including laws, services, and culture Go to source- For example, if your land is out in the country, in the woods, or encompasses an area with wetlands in it, this may be of interest to your government as a wildlife preserve.
- Likewise if the land has natural resources, such as coal, lumber, fresh water, or oil, your government may be interested in buying it.
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Hire a real estate attorney to prepare the closing documents for the sale. Hiring an attorney to help you through the closing process is a wise choice for any real estate transaction. They can help to ensure that everything is in order for the sale. They will be available to answer legal questions, review all documents involved in the sale, and protect your interests throughout the closing process. [11] X Research source- Ask your family, friends, or your Realtor to recommend a good real estate attorney. Make sure to choose someone who handles real estate transactions on a regular basis.
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Negotiate with the buyer to get the price you want. Negotiating with buyers to get a higher price for your land can be difficult if you've never done it before. This is another good reason to consider hiring a real estate agent. However, if you decide to sell the land yourself and negotiate with the buyer or buyer's real estate agent, you'll need to use some negotiation tactics to get the best possible price for your home. Some strategies to try include: [12] X Research source- Not accepting the first offer and coming back with a higher price.
- Having a backup plan if the offer falls through, such as renting the land.
- Offering extras, such as the riding mower or other equipment you used to maintain the property.
- Finding out what the buyer's prequalification amount if they're mortgaging the property.
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Accept an offer when you're happy with it. If you get an offer and it's what you want for the property or if it's close, then you may choose to accept it. Keep in mind that often the first offer you get will be the best one, so it might be worth accepting an early offer even if it's slightly lower than your desired price for the land. [13] X Research source- For example, if you're hoping to get $89,000 for your land, but someone makes you an offer for $85,000 right away, it might be worth taking this offer.
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Complete the closing paperwork on your own or with an attorney. Closing paperwork can be time-consuming and complicated, but if you've hired an attorney, they will handle this for you. You will only need to provide additional information and documentation to them and sign the paperwork required for the sale. If you decide to do the closing paperwork without an attorney, read through everything carefully before signing to ensure that it is correct. [14] X Research sourceTip : Keep in mind that some states (in the US) require you to hire an attorney to complete a real estate sale, while it's optional in others. Check with a real estate agent to determine if you need to hire an attorney.
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Expert Q&A
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QuestionWhat is the zoning of a land?Arun Ghosh is a Real Estate Expert and Licensee with over five years of experience, specializing in commercial real estate. He recently received a certification in Commercial Real Estate Analysis and Investment from the MIT School of Architecture and Planning. As the founder of Hutfin.com, Arun created an online marketplace designed to streamline the selling and buying of commercial property. Previously, he worked as a certified Cloud Architect and DevOps Engineer and is a member of prestigious organizations such as REIN, ISACA, EC-Council, and PMI. He has also served as a U.S. Army Officer. He holds a Bachelor's Degree from the University of Kerala and a Master's Degree from the Hough Graduate School of Business at the University of Florida.Zoning is important because it dictates the appropriate usage of a given property and guides buyers or investors to make an informed decision. Classifications such as agricultural or industrial spell out clearly what can be done on a given land, mainly for big lands of more than five acres. Investors have to know what uses the property can be put into to optimize value out of it and avoid some costly blunders. For example, understanding whether a land can be industrially zoned or whether it is to remain an agriculture zone can make a huge difference in development potential. In addition, the basic infrastructures such as electricity, water, and sewage, must be available to allow the use of such land for certain purposes. Without proper zoning and utilities in place, land can sometimes become a liability rather than an asset. Therefore, it's critical to investigate the zoning, available utilities, and possible usages of the land before any land purchase transaction to avoid the effects of misconceptions and have a sound investment.
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References
- ↑ https://pocketsense.com/determine-land-value-property-8026430.html
- ↑ https://www.inc.com/mike-handelsman/how-to-sell-your-business-the-land-its-on.html
- ↑ https://www.inc.com/mike-handelsman/how-to-sell-your-business-the-land-its-on.html
- ↑ https://www.nolo.com/legal-encyclopedia/the-basics-land-contracts.html
- ↑ https://www.nolo.com/legal-encyclopedia/the-basics-land-contracts.html
- ↑ https://www.inc.com/mike-handelsman/how-to-sell-your-business-the-land-its-on.html
- ↑ https://www.forbes.com/2010/05/25/why-you-need-real-estate-agent-personal-finance-commission.html#6f77c1ca4496
- ↑ https://www.inc.com/mike-handelsman/how-to-sell-your-business-the-land-its-on.html
- ↑ https://www.inc.com/mike-handelsman/how-to-sell-your-business-the-land-its-on.html
- ↑ https://www.in.gov/dnr/healthyriver/6575.htm
- ↑ https://www.nolo.com/legal-encyclopedia/hire-real-estate-agent-or-lawyer-29527.html
- ↑ https://www.businessinsider.com/negotiating-tricks-to-try-when-selling-your-house-2016-5#-5
- ↑ https://www.businessinsider.com/negotiating-tricks-to-try-when-selling-your-house-2016-5#-5
- ↑ https://www.nolo.com/legal-encyclopedia/hire-real-estate-agent-or-lawyer-29527.html
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