Selling land by owner might be a good option if you’re hoping to maximize your gain. Real estate agents typically take 4% to 6% of the sale price, translating to as much as $3,000 in commissions on selling a $50,000 land. In addition to getting more money into your pocket, selling land by owner allows you more control over the sales process. However, if you decide to go down this road, you need to do it the right way.
Here are the crucial factors to consider to maximize the profit and minimize the hassle when selling land on your own.
Decide Whether The Method Is Right for You
It’s vital to determine whether you’re up for the challenge of selling the land by yourself. The process is document-intensive, complex, and time-consuming. Also, some legal requirements might require you to hire a real estate attorney, a title company, escrow agents, or other service providers. If you decide to sell the property on your own, it’s wise to have a plan in place for what the process will look like. The plan should outline the step-by-step process and identify which professionals will be used to close the sale.
Set a Reasonable Price
Setting a realistic price is one of the most essential aspects when it comes to learning how to sell land by owner. Conduct a comparative market analysis to determine the right price for your property. The analysis considers the property’s features and how it compares with other recent sales in the same area. When selling land on your own, you can do the analysis using online listing sites. Check the local tax records for recent sales to get an even better idea of the land sale prices in your area.
Show Your Raw Land at Its Best
Though you can’t stage the tract of land as you would with a house, you can take a few steps to improve the curb appeal like getting a deck. Clear the garbage, remove the weed, mow the grass, and trim the shrubs and trees. Repair the fence if needed, plant some easy-to-maintain flowers, and develop a low-maintenance landscape. Then, hire a professional photographer to take attractive photos and showcase the property at its best. You can even make aerial video shots and virtual tours of the property to give prospective buyers a good idea of your parcel of land.
Get Serious About Your Online Listing
MLS sites are necessary for any land sale strategy. For a flat fee, you can create a professional-looking listing on established real estate websites. This is great for expanding your potential customer base and getting more eyeballs to your property. To stand out among the competition, optimize your listing to appeal to your target audience. Also, include all the relevant details so that potential buyers imagine what the property could offer.
Be Responsive
You’ll likely have to show the property to potential buyers in person. Make sure to always take the time to give them a tour and show them the furniture, the space, and other luxuries that go with the place. Likewise, respond to emails and calls promptly and provide any additional information they may require. Keep in mind that land buyers may move on to the next piece of land for sale if they have to wait too long to get answers to their questions.
Be Flexible About the Price
Buyers almost always assume there will be some wiggle room, so their initial offer will often be lower than what they’re actually willing to pay. Therefore, failing to negotiate might leave you with a poor offer. On the other hand, the higher price isn’t always the best offer. For example, you might want to consider taking up on a lower cash offer than a higher offer contingent on financing.
Consider Selling to Professional Land Buyers
Selling to a “we buy land” site can be a convenient way to sell a plot of land for cash quickly. You would have to submit a short questionnaire about your property and get a competitive offer. Once you accept it, they will prepare a purchase agreement for you to sign, after which the closing process starts. You’ll get paid in cash as soon as the paperwork is completed. Not only will you get a top dollar for your property, but the process is hassle-free and saves you from paying additional costs such as title, escrow, and closing fees.
Final Thoughts
Selling land by owner can help you make more profits, but you need to do it correctly. Putting in the effort to create a good listing, setting the right price, and improving the curb appeal can ensure that the transaction goes smoothly and you get the best price possible.
