Did you know the average price of land in the United States is $3,160 per acre?
With the cost per acre increase each year, selling land becomes a more challenging process. If you have decided to sell your land by owner, there’s no need to panic.
Even if this is the first time you have attempted to sell land by owner, these dos and don’ts can help you.
Read on for the ins and outs of selling land by owner.
1. Do Focus on the Positives of Your Land
If you’re selling your land by owner, there’s a big chance you’re focusing on the reasons people wouldn’t want to buy it. Even though you might not have the best piece of land, you will be able to sell it if you find the right buyer.
After all, people buy things that are less than perfect all the time in the hopes of restoring it. People buy houses that are in bad condition and sell them for a profit, so selling your land is no exception.
Rather than focusing on the negative traits of your land, you need to focus on the positives. For example, if the land is not in one of the most popular places in town, you can look for ways to enhance its location.
Start by telling potential buyers how the land is an up and coming neighborhood, and in a few years, it will be worth more. Investors who love to invest in up and coming areas will love this idea.
However, you will have to support a claim such as this with facts. If you cannot support your claims, there’s no need to be dishonest with potential buyers.
Make sure you also talk about the potential of the land by giving potential buyers an idea of what they can do with it.
2. Do Think Like a Buyer
Before you start the process of selling your land by owner, you need to learn to think like a buyer. Keep in mind that buyers looking to buy land are different people than the people looking to buy residential real estate.
Those looking to buy a home need a place to live. However, those looking to buy land have a specific project in mind.
Before you show a potential buyer the land, you should get a general idea of what they plan to do with it. For example, if the buyer’s plans include building a shopping center, then you can build-up on this idea.
You will have to do your research to be able to talk to the buyer about the most relevant information. Someone looking to build a house on your land, on the other hand, would want to learn about nearby schools, shopping, restaurants, and safety.
You can also check out websites to buy land to familiarize yourself with descriptions.
3. Don’t Snooze on Local Regulations
If you’re selling your land by owner, you can expect buyers to go to you for information. Since you’re not working with a real estate agent to answer these technical questions, you will have to get crafty.
Before you meet with any potential buyers, you should have answers to some of these common questions:
- Can you explain the zoning laws?
- Are there any liens or deed restrictions?
- What type of septic system will I need?
- Are there any build restrictions on this land?
- Are there any HOA fees?
- What are the flow rates?
You should be able to answer these questions as well as a real estate agent would. If you fail to give the buyer the answers they need, they might walk away from the sale.
4. Do Research Your Land
Oftentimes, buyers are more inclined to buy a piece of land if they can connect with the lot. Rather than talk about square-footage and taxes, you should have something more interesting to say about the land.
If the land has been in your family for generations, you will be able to tell them a little more about how your family acquired the land.
For example, you can talk about how your great grandfather started from nothing and made a name for himself. Maybe he purchased the land to leave a patrimony for his family. The history could be more interesting if someone in your family won it in a game of poker.
However, if you recently acquired the land, you might have to do a little bit of research to learn about the history of the land. By going on Google, you can learn a lot about the land that a buyer might find interesting.
Because buyers are so used to crunching up the numbers, they often rely on interesting facts to make their decision. Although the history of the land might not be a big deal to you, it can be a gamechanger for the buyer.
5. Don’t Overprice the Property
If you want the land to sell quickly, you need to practice it right. Owners who price any piece of property over market value can expect it to sit on the market for many months or even years.
Although your piece of property has sentimental value for you, potential buyers won’t see it through your eyes. At the end of the day, buyers want to pay what the land is worth and not a penny more.
Before you put land for sale, you need to research the market. Learn about what similar lots have sold for in the past to get a baseline.
If you need to sell your land fast, you might consider pricing it at market value or below market value. Selling below market value might bring you multiple offers and allow you to pick the highest one. Pricing it at market value might also bring an offer quickly.
However, if you overprice it, the new listing appeal will wear off in 2-3 weeks.
Selling Land By Owner? Now You Know Where to Start
Selling land by owner might seem like a more complicated process, but with these dos and don’ts, you will have a great place to start. Remember to price it just right, think like a buyer, focus on the positives, and learn about local regulations.
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