Learning how to sell land is tough, but doable. If you have a vacant property that you just want gone, this is the guide that you need to read.
Do you think you’re sitting on a gold mine? If you own vacant land, anything is possible!
The thought of discovering gold may inspire you to order a set of prospector’s tools, but realistically, most landowners won’t find a gold mine. Instead, selling vacant land could add a considerable amount of cash to your bank account.
Not sure where to start?
Read our short guide on how to sell land. You’ll find tips to help you with pricing land and attracting the right buyers.
How to Sell Land: The First Step
Even if you need to sell your acreage fast, you’ll want to make sure you do your due diligence. Prospective buyers will have questions, and your expert answers may drive a better offer and a quicker sale.
Research the zoning laws before you list your land. Zoning laws, also called ordinances, regulate how a buyer can use a piece of land. The most common land classifications include:
Some lots sit in a combination or mixed-use zone. For example, you may own land zoned for both commercial and residential. Zoning laws will dictate what types of businesses your buyer can operate.
In addition to understanding land use regulations, you’ll need to know about any deed restrictions or liens on the property.
Tip: Before you list your land for sale, make sure you include the correct parcel number.
Secrets to Pricing Land
To ensure a fast sale, you want to list your land at a fair price.
If you’ve ever sold a home, you’re familiar with the pricing process. You’ll follow something similar when pricing land.
Start by comparing your piece of land with others for sale in your area. Start your search with land listed in the Multiple Listing Service (MLS). You can find MLS listings on your local real agent’s website.
Search for land with similar zoning to yours, then narrow down your list to properties in the same area and of the same size as yours.
Next, make a list of the attributes of your piece of land. Attributes include things like access to major roads, utility services, and for land zoned for residential use, access to shopping and healthcare. You might not find exact matches, but you should be able to find several similarities to the land you want to sell.
Since the real estate market fluctuates, limit your search to land listed and sold within the last six months.
A quick way to get a feel for the price you can expect a buyer to offer for your property is to contact a business that buys land for cash. You’ll get a quick answer since most cash buyers respond within 24-48 hours.
Curb Appeal Matters
One thing that helps sell a home is curb appeal. Did you know curb appeal isn’t reserved solely for selling a house?
Look at your land through a buyer’s eyes. Many people interested in buying vacant land have a hard time looking past broken fences, dilapidated outbuildings, and overgrown weeds and trees.
Cleaning up your piece of land helps prospective buyers see the property’s potential.
Another way you can make your land more appealing is to have a professional photographer take your listing photos. Most buyers won’t give a second look to a listing with blurry images taken with a cell phone.
The images you include in your marketing materials tell the story of your property. Use a combination of ground and aerial photos. Don’t forget to capture scenic views and other land features.
Don’t hesitate to show off your land!
Sell It for Cash
Whether your motivation for selling a lot is to get out from under the burden of paying property taxes or you need the money to invest elsewhere, you may find selling your property for cash an attractive option. A cash transaction comes with multiple advantages, including:
- Fast closing
- Less paperwork
- Fewer fees
- Cash at closing
Selling land using a realtor often means waiting 3-6 months or longer for your sale to close.
Traditional real estate transactions also require working with a title company, which can add another 30 days to the process. You may still need the title company, but you can bypass many of the other time-consuming steps involved when working with an agent.
If you’re in a hurry, consider accepting a cash offer!
Documents Used When Selling Vacant Land
When you sell vacant land, you may not see as much paperwork as you would if you were selling a home or commercial building, but you’ll still sign at least two documents.
First, you’ll sign a purchase agreement. It’s a legal document your buyer signs when they make an offer on your land. Purchase agreements include:
- Purchase price
- Amount of initial down payment
- Terms of sale
A purchase agreement should also show that the offer is for a land contract.
You’ll also sign a land contract, which contains some of the same information as the purchase agreement. The land contract also includes the address and the full legal description of the property.
Depending on the location of your property, you may need other documents. The individual or company handling the closing will make sure you understand each piece of paper you sign.
Do You Have Land to Sell?
We hope our quick guide helps you if you have land to sell. At an average price of $12,000 an acre, you could be sitting on a gold mine. The offers you receive will hinge on location, the attributes of your lot, and the current real estate market.