Land appreciates with time and can get you substantial profits. But you need to plan strategically and put in a lot of effort to help you tackle the challenges when selling your land.
Although selling your land might require a different strategy, the concept is not that different from selling a home. However, you need to be more patient when you put your land for sale because the land market is not as vibrant as the home market. You also have to understand your potential buyers and their specific needs to come up with smarter ways to sell your land.
Below is an outline highlighting the things you need to consider before selling your land:
1. Selling Options
When selling your land, there are several options you can choose from. However, you need to create a balance between targeting the right prospects and reaching a vast audience. The selling options include:
Selling land to cash buyers can help eliminate the hassle of sprucing the land and dealing back and forth with real estate agents or prospective buyers. If you need your cash as soon as possible, selling your land to a cash buyer can be your best option.
Selling to a cash buyer eliminates the need to wait for weeks for the prospective buyer’s mortgage to be approved. You can contact companies that can pay in cash within a short period. For more information, check out sellland.com.
Instead of having every prospective buyer visiting the land to start the negotiations, you can schedule all the interested buyers to gather in one location, hence speeding up the selling process. However, you have to arrange the land viewing before the auction date to let interested buyers see the land on offer.
In the auction, you set a minimum price for the land, then let the interested buyers outbid each other to get ownership of the land.
As the term implies, for sale by owner (FSBO) refers to selling your land by yourself without having to hire a real estate agent. With this option, you have to prepare the necessary paperwork such as purchase agreement, contract for sale, disclosure form, deed, and closing statement.
In addition, you need to market your land, using Multiple Listing Services (MLS), social media, and word of mouth. You’ll also be responsible for negotiating with the buyer to close the sale.
A real estate agent can help you with all the paperwork and also list potential buyers. They can also help you find a fair market price for your land. However, it’s crucial to research the agent you want to hire to avoid working with scammers.
2. Pricing The Land
Pricing your land can be one of the most difficult stages in the land selling process. You need to price the land properly to avoid walking away with losses due to low pricing or getting stuck with the land for a long time due to high pricing. You can look at the prices of adjacent lots to get an idea of how to price yours.
3. Land Readiness
It's crucial to make the land look presentable before inviting potential buyers to see it. Land that isn’t presentable may force you to reduce its selling price. The potential buyer might ask for a discounted price to cover the amount of work they’ll have to do to prepare the land. Therefore, you need to cut overgrown grass and bushes to enhance the beauty of the land, maintaining its value.
Having proper documentation can help shorten the land buying process for the potential buyer. In this case, it would be best to have a title deed ready. Since selling the land means transferring its ownership, the potential buyer needs to know its rightful owner. It's crucial to ensure that you’ve paid your land tax and have the necessary certificates ready since you’ll need them to close the sale.
5. Boundaries And Other Details
Every buyer needs to see what they’re buying. You increase your chances of getting a prospective buyer if you provide photographs and essential details such as the buildable area, status of utilities and improvements, setbacks, and environmental studies. More importantly, use site maps and land surveys to show the property lines. In summary, you need to give the potential buyer a complete picture of what to expect when they buy the land.
Selling your land could be tricky as you need to understand the land market and the needs of your potential buyers. It also takes a good amount of effort and a lot of paperwork to sell your land. The guide above can take you through some essential factors you need to consider before selling your land to help ensure the process goes as smoothly as possible.