Selling a piece of land can be tricky. It differs from selling a house where you or your broker has already vetted the buyer. Selling raw land requires a lot of imagination from buyers. It is best to know your audience before putting it on the market.
Determine Your Goals
Selling a piece of land can be a complicated process. Whether you’re looking to sell an extra parcel for profit or part of your land to a family member, it’s essential to determine your goals and find the right buyer. If your property is mortgaged, get the lender’s approval before selling. Ensuring that the property will be sold for a fair value and that you won’t trigger a due-on-sale clause is crucial. Also, it’s essential to research how much your property is worth. Consider factors like location, market trends, and zoning laws. You’ll want to find a fair price to attract the right buyers. SellLand.com can help you determine the best price for your property.
Do Your Research
Regarding land, value is based on what can be done with the property. That means buyers are looking for unique features that will make it stand out from the rest. If you’re selling a piece of land, get a documented parcel map that marks the portion being sold. It is necessary to make the sale legal. If the land you’re selling is mortgaged, check if your lender allows partial loan payoffs. If not, you may have to wait until the entire mortgage is paid off before being able to sell your land. It can delay your sale and reduce the overall price of your land. A real estate attorney can help you determine what your options are.
List the Property
It’s essential to have the correct legal documents or paperwork when you sell a piece of land by the owner. It will help to ensure the property is transferred smoothly and correctly. Listing your property will also help to get a professional property appraisal or evaluation before you put your land on the market. It will give you an accurate idea of the property’s value and allow you to set a competitive asking price. It’s also important to consider who your target buyers will be. While homebuyers are often ready to jump on a deal, they may not be as interested in vacant land. If possible, try to attract developers or businesses by getting your land up-zoned to a more valuable use. It could increase your selling potential by a significant amount.
Negotiate
Once you have found a buyer, it’s essential to negotiate the best deal possible. It involves weighing financial impacts and long-term effects on your remaining land. It also involves ensuring clear property boundaries through professional surveys who you sell to matters even more with land than with homes. Since land value is often based on what can be done with it, the right buyers will get you the best price. If you’re mortgaging a piece of land, you may need your lender’s approval before selling it. Otherwise, you risk triggering the loan’s due-on-sale clause and potentially needing to pay off the debt. It’s essential to consult a real estate lawyer before proceeding.
Close the Sale
The land market is unique, with its own sales process and buyer profiles. Understanding these differences will help you sell your property efficiently and effectively. Before trading, you must clear your property of any encumbrances, including a mortgage. Ask your lender for a release schedule to see if partial releases are allowed. Have topographical surveys, estimates from utility companies, and renderings available to buyers for a more detailed picture of the land. Also, if your property shares a driveway or other amenities with retained land, draft agreements detailing use to prevent future issues. Providing these details helps buyers feel confident in their purchase. Selling land can be complicated, but you can close the sale quickly with proper preparation. You’ll likely earn more money by avoiding commissions and other fees.
