When you think about real estate, you may think about starter homes, mansions, or commercial facilities. In fact, however, there are millions of acres of farmland, pastureland, rangeland, and woodland in the US and every day people are either listing their available land or seeking land for development or preservation purposes. If you have empty lots or land to sell, you may be wondering where to begin. We have the information you need, including a convenient alternative to listing on the local MLS. We can help you ensure you get your land sold quickly, efficiently, and for the right price.
How Is Selling a Home Different from Selling Lots or Land?
You may be familiar with the process of selling a home. Bring in a real estate agent, clean up the house, have photos made, then list the home on the local MLS so that it is available for home buyers searching online. So how does the process differ when you’re selling lots or land instead of a home?One of the most important differences between a home sale and a lot or land sale is the need for accurate zoning records and site maps of the lot or land. Unlike a home, you can’t just put in the street address of acres of land and get the information you need. You or your agent may have to consult land records at the courthouse and you may need to have the land surveyed to ensure accurate and up-to-date records.
Steps to Take to Sell Your Lot or Land
There are a variety of steps you might consider in order to help you sell your lot or land more quickly and for the best possible price. These can include:Ensuring updated site maps are on file with the county or municipalityDetermining the zoning for your land and applying for an adjustment, if neededCleaning up the land and providing access, especially if it is overgrownDetermining the availability of utilities and other services in order to better market the propertyObtaining the services of professionals including a real estate agent or broker who specializes in land sales, a professional photographer, and a surveyor, if needed.
Selling Commercial Property vs. ResidentialProperty
It is important to know whether your land is zoned for commercial or residential use. This can make a huge difference in the way you market the property and the price you can expect to get for it. In some cases, changing demographic patterns in your area may warrant re-zoning of your property. This often happens when land that was formerly rural and zoned for farming or residential use is encroached upon by subdivisions and new businesses in the area.If you are selling a lot within a residential neighborhood, it is important to find out if the rules of the local Homeowners Association (HOA) restrict the size or type of home that can be built. This information would need to be disclosed when selling your residential lot.
The Process of Selling Commercial Property and ResidentialProperty
Commercial Property
:Commercial property can include a variety of land types, including farmland, rangeland, woodland, or land zoned for industrial, retail, or other uses. It is important to understand the local market and the designated zoning for your property.You may want to market to developers or even to local buyers. For example, if you own farmland, there may be a neighboring farmer who would like to obtain your acreage. Alternatively, if you own empty land adjacent to a commercial area, changing your zoning from agricultural to commercial can open up a whole range of potential buyers.
Residential Property
:Residential land can be in the form of an empty lot in an existing neighborhood or in the form of a large plat of land that can be subdivided by a residential developer. You will want to know more about access to utilities and available infrastructure in order to properly market this type of land.
Benefits of Selling Property Instead of Renting OutProperty
You may be considering holding onto your land and renting it out in the hopes that it will gain in value over time. Here are a few things to consider:Are you willing and able to live the landlord lifestyle? Obtaining tenants, supervising their use of the land, collecting rent, and evicting non-payers can be a time-consuming and frustrating process.You still have liability for much of what happens on your land. If your renters destroy the land, dump trash or chemicals there, or create problems with neighboring landowners, much of the blame and subsequent repair will fall to you.
Who Will BuyMy Property?
There are many people who may want to buy a piece of undeveloped land. These include:Commercial developers, including mixed-use, hospitality and resort, healthcare, industrial, storage, and other commercial interestsResidential developers, including subdivision, new home, and multi-family buildersGovernmental agencies who need land for offices, recreational facilities, and schoolsLocal commercial interests that align with yours, including the owners of adjacent plots of landThese buyers may be right next door or may be international buyers. In any case, it will be important for you to adequately market your land or lot in order to catch the attention of the right buyer.
Do I Need an Attorney to Sell My Lot or Land?
You may or may not need an attorney in order to sell your lot or land. If you use a real estate agent or broker who is experienced in this area, they will have standard contracts and other documentation to facilitate the sale. However, you may still end up using a real estate attorney for the closing process. Alternatively, some title companies may be able to handle the closing and registering the deed of sale with the county.Alternatively, when you work with us, we take care of all of the details surrounding closing, and pay all of the transaction fees. That can save you a bundle over the cost of hiring your own legal professional.
What Documents Are Required to Sell My Property?
In a traditional land sale, you will need a variety of documents, including:A representation agreement if you work with a real estate professionalThe deed to the landRequired disclosures of the land’s condition and featuresA Contract for SaleAddendums with additional information and specifications, especially in the event of contingencies or other detailsEasements or other use agreements negotiated with neighboring landownersWhen you work with us, however, we do much of the research and fact-gathering on your behalf, including title research. You’ll provide some initial information then you’ll receive our offer and a set of prepared documents for your review and notarized signature.
How Are Land Buyers Different from Homebuyers?
Because they are generally planning to use the land for their own purposes, land buyers are often less focused on details of the land itself than on its potential. While a homebuyer may have strong feelings about small elements like paint color or light fixtures, most land buyers understand that they can clear or re-grade land to suit their purposes. That means that a land sale can be conducted more quickly and easily, in some cases, than a home sale.In addition, in some home sales you have a contingency for the sale of the buyer’s current home. That means that your transaction can be held up for months or even years while you wait for your buyer to find a buyer of their own. This rarely happens in land sales.
Techniques Required for Land Sales
In order to ensure you get the right price and the right buyer for your land sale, you will need to consider the following techniques:Zoning adjustments as needed to ensure that your land is valued according to its “highest and best use”.Clearing, if needed, in order to allow access for potential buyers.Marketing through online and direct promotional content. This may also involve the work of professional photographers, copywriters, and graphic designers.Direct contact with representatives for developers and local landowners in order to determine interest and ensure timely market awareness to the property’s availability.Negotiations and contract supervision throughout the process up until closing.
How Should I Price My Land For a Faster Sale?
There are a variety of ways to consider pricing. Factors such as time of year, weather patterns, local market conditions, general economic indicators, and the availability and scarcity of land can all have an effect. In addition, the announcement of a major new commercial or industrial development can temporarily drive up prices.If you are looking for a fast, reliable, predictable, and efficient sale for your lot or land, contact us. We take the complexity and guesswork out of your lot or land sale with a proven system that gets you a fair price for your property faster than you thought possible.