It can be difficult to know where to start when trying to sell land…
Should I list it with a realtor?
What should the asking price be?
Should I put more money into fixing up the property before selling it?
Will anyone even want to buy my vacant land?
The good news is that there are some key variables to consider when selling land, and once you understand how these variables interact, the steps you need to take to sell your land will be much clearer.
So what are these crucial factors and why are they so important? Keep reading and I’ll walk you through how Time, Price, and Effort are crucial to selling land and how to think through them when figuring out the best way to sell land.
Factor 1: Time
The first and arguably most important factor to consider when deciding to sell land is Time: How fast do you need the land to sell? This decision can be based on whether you need cash immediately, whether the property will be lost to back taxes on a certain date, if you are unable to maintain the land any longer, or for any other reason, personal or otherwise. This is a very important consideration as it will impact the strategy you employ when selling land.
Selling Land Fast
If you must absolutely sell land fast, you can adjust the other two factors in order to achieve that goal. For example, if you have delinquent taxes and a tax sale is approaching, you have to sell your land quickly or risk losing it. To speed up the sale, you can choose a low asking price, put effort into making your property attractive to buyers, and even offer owner financing to sweeten the deal (more about these factors below). The less effort you can afford to put into your land, the lower the asking price will need to be to sell land fast.
When Time is Not an Issue…
On the other hand, if you have all the time in the world to sell your land, you can afford to ask for a higher price and put less effort into the land. The longer you can wait when selling land, the less pressure there is for you to compromise or negotiate. Unfortunately, this often isn’t the case as property taxes, bills, and life in general can demand for things to move quickly.
Once you determine if Time is an issue, you’re ready to move on to considering the remaining factors: Price and Effort.
Factor 2: Price
The second critical factor to consider when selling land is Price. There are two parts to consider with price: sales price, the amount you actually sell the property for, and the various fees and expenses you incur when selling land.
The first and most obvious price consideration is how much to sell land for. To some degree, this is determined by looking at similar, comparable, vacant land listings, and using their selling price as a baseline to determine the value of your property. This will get you a price range of what your property is worth. Within that range, the other factors, namely your timeframe and the amount of effort you can put into selling the land, will dictate whether you should list your property at a low price to sell your land fast with minimal effort or whether you can choose a high asking price and wait for the perfect buyer to come along. Another option is to choose a high listing price and put a lot of effort into preparing the land for sale in order to maximize the sale price…we’ll talk more about that in the Effort section below.
Fees and Expenses
The second Price consideration is how much money you are willing and able to pay in order to sell your land. Fees and expenses such as realtor commissions, attorney fees, and title work can easily add up to thousands of dollars that would otherwise go straight to your pocket. As in everything with real estate, who pays these fees is negotiable.
Hinterland Properties offers to pay all closing fees including attorney, title, and recording fees as well as outstanding back property taxes on the land. We do this in order to make the process of selling land fast and easy on land owners.
Factor 3: Effort
When selling land, Effort refers to the amount of energy or money that you’re willing to put into improving your land in order to sell it. There is no prescribed amount of Effort needed to sell land, you can do absolutely nothing to the raw land or you can pave roads, clear brush, grade the land, and landscape and chances are you will sell your land either way…eventually. What putting Effort and money into your property does is it allows you to expect a higher selling price and to sell land quickly.
With all that said, the amount of Effort that you’re able to put into selling land depends on your personal situation. If you’re working a full time job while trying to care for three kids, chances are you don’t have a lot of extra time to landscape and clear brush from vacant land.
As a selling factor, Effort works the same as Time; more Effort (like a longer timeframe) equates to a higher asking price. On the other hand, if you want to sell land fast with (almost) no Effort, you will likely need to accept an offer well below the market value or your property.
Whether you decide to put no additional Effort in before selling land, or whether you invest thousands of dollars to make your property the most attractive it can be, truly is a personal decision and neither option is better or worse than the other.
What’s important is to think about the Effort you can realistically take on when selling land given your other financial and personal limitations.
Pulling it All Together
Once you’ve decided that you want to sell your land, you’re more than halfway there. By considering the three key factors: Time, Price, and Effort, you’ll have the outline of a concrete plan to sell your land. The key piece that ties these factors together is this:
What makes the most sense for your life at this time?
If you want less headache and more free time, consider talking to an investor to purchase your land; the sale will be fast and easy. If you don’t care if the land sells quickly and don’t mind putting time and effort into selling the land, it may make sense to spend your time (or money) clearing and beautifying the land and listing the land for sale by owner or with a realtor in order to see a larger payday at some point down the line.
Either way, take the time you need to determine the exact benefit (or benefits) that you want to get out of selling your land, and craft a sales plan that will achieve that goal.
If you’d like to find out more on how to sell land fast through an investor, feel free to contact us or submit your property information to request a cash offer.
Always here to help,