Do you have out-of-state, out-of-town or local vacant land you want to sell? This guide can help assist you when you are ready to sell your land..
Selling vacant land is similar to selling a home. When selling a home or vacant land, you will need to identify how to market it, you will need to set your selling price and you will want to make sure it is as presentable as possible for potential buyers. However, there are some important differences between selling a home and selling land, so you will need to tailor your strategy. Selling your out-of-state land could be a quick way to earn some cash. And, with advances in technology along with the presence of companies and individual investors who are ready to buy your land, selling your land (whether out-of-state, out-of-town or local) is now more achievable than ever before.
Who Would Want to Buy My Land?
you may be thinking that nobody wants your vacant land, especially if it’s in the middle of nowhere. Vacant land (especially out-of-state vacant land) can be one of the hardest types of real estate market to sell because without a home or other structure on it, it might be hard to visualize what is possible. Selling vacant land is all about marketing, which can take creativity and imagination.
The good news is that if you know how to market your land effectively, there are plenty of customers out there. For example, rural vacant properties can be sold to neighboring landowners. They could also be sold to individuals or families wanting to get away from the city. Folks starting an agribusiness can also be good candidates for your land.
Many people don’t know that there are land investors who routinely buy vacant lots. Some investors offer cash with quick closings. They may even simplify the process by handling all of the paperwork, paying back taxes and closing costs or legal fees. When you sell this way, it’s easier on you, because you don’t have to market the land yourself or pay a realtor to do so. Many sellers choose to sell to land investors because selling out-of-state land can take months or years, depending on the area. If this sounds like something that might be of interest to you, simply fill out this online form and receive a no obligation offer on your property. It takes just two minutes and does not obligate you to sell. It is free and would be a quick way for you to get a better sense of what your property is worth.
One nice thing about selling land is that most land buyers are looking for something specific, so if you can listen carefully and use the information that they give you, you can tailor your marketing techniques to fit their situation.
When you are ready to sell your land, there are a few steps you might consider before officially putting your land up for sale.
Steps to Take to Sell Your Land
- Identify What Kind of Land Are You Selling
- Identify Why You Want to Sell
- Gather Your Documents
- Understand the Lay of Your Land
- Prepare the Land
- Have the Land Appraised (Optional)
- Hire A Realtor (Optional)
- Set Your Price
- Consider Owner Financing
- Show Your Property At Its Best
- Place Property Signage
- Determine How and Where You Will Market Your Property
- Reach Out To The Neighbors
- Summary and Alternative Options
- What Kind of Land are You Selling?
First, you will want to identify the kind of lot you have. Some vacant lots are truly vacant, meaning there are no structures, others may have a small structure such as a shed or lean-to. Some lots may be vacant but improved land, where things such as utilities or a paved driveway have been added. Others are truly raw land where there are no utilities, no structures, driveways, building pads, nothing. Just raw land. Below is an overview of each of these types of land and what to consider when you are deciding if or how to sell your land.
Does your land have structures? If so, you might be incurring costs to maintain the structures or liability insurance for buildings that might be on the property. Maintenance is important, because old structures can become a public eyesore, they can be a liability and can even incur fines for code violations. If you keep the land, you may be eventually forced to demolish these structures, which is costly. If these old buildings are presenting a major problem for you, it’s time to sell. But, if you are selling you may want to keep those structures…even if they are falling apart. Many buyers actually like structures that are in bad shape.
Do you have vacant land that has been improved? If so, it is important to consider what kinds of improvements it has. For example, if your property has a well, does it have a well permit #? When was it dug? Does your well have septic or sewer? When was the last time it was inspected? Understanding the condition of your land’s improvements is critical when you go to sell.
If you have a completely raw lot, the decision to sell might be based on how long you owned it, whether your plans for the land have changed since you purchased it and whether you want to continue to pay the taxes and other maintenance fees on it. If you’re not doing anything with the land, then consider putting it up for sale. Someone else could use the land, and you could use the cash.
Regardless of whether you have land with structures, improved land, or raw land, there are buyers out there for your property
2. Why Are You Selling
You may be asking yourself; does it really matter why I want to sell? The answer is yes, it matters. It matters because why you are selling may impact the approach you want to take when selling your land. For example, if you originally bought land because you planned to retire on it but your plans changed, you may not be in a hurry to sell. In this case, you might hire a realtor and be willing to wait several months (or more) for it to sell. On the other hand, if you are selling land because you need the cash or because you don’t want to pay the upcoming tax bill, you might consider marketing the land yourself or selling to a land investment company to ensure a quick sale.
3. Gather Your Documents
Once you have identified why you are selling and what you are selling, work to gather all of the documentation you have related to the property. This might include:
- Receipts for property tax payments – available from the property’s County Assessor)
- Any surveys
- Trust documents – if you own your property through a trust or similar entity
- Probate paperwork or death certificates – if the property is owned by a deceased relative(s)
- HOA paperwork
- Property surveys
- Lien releases – if the property has ever had liens against it.
4. Understand the Lay of Your Land
It is important to understand where your land is located and what its features are. This will be critical when marketing your land and speaking with potential buyers. If your property is out of state and you don’t already know the answers to the information below, consider using Google or other mapping software to confirm things like:
- Access (dirt road, asphalt road, public road, private road, etc);
- Topography (flat, rolling, sloped, etc);
- Physical features (trees, rocks, soil type, bushes, rivers, creeks, streams, etc);
- Utilities on or nearby your lot (power, water, sewer / septic); and,
- Property boundaries (if a survey exists, have the property’s boundaries been marked?)
In this step, you can also work to identify details about zoning and find out if making changes to the zoning is possible. The county’s Planning and Zoning Office can help you identify your property’s current zoning, what would be possible and what the process / cost would be to change it.
5. Prepare the Land (If Possible)
First impressions make a big difference. Just as it is important to prepare your home when you are selling it, it is important to prepare your land. If your property has overgrown weeds, dead trees, debris or grass, consider cleaning it up or hiring someone to do so. Similarly, if the property has trash or junk on it, consider hiring someone to clean it up. If your property is out of state, you can use services like Angie’s List or Thumbtack to find local reputable contractors. Some sellers even plant plants to make their vacant land look beautiful. Depending on the value of your land where it is located, and whether a survey has ever been done before, you might also consider having your property surveyed and mark your property boundaries.
It is worth noting that while cleaning up your land and having it surveyed could be very helpful in not only getting you the price you want for your land, but also selling it quickly. It is also worth noting that many people will be willing to buy your land as is.
6. Have The Land Appraised (Optional)
Depending on the size and value of your land, you may consider hiring a local appraiser to get a professional quote on how much your land is worth. Depending on the area and land type, a professional appraiser will cost you around $500, but they will be able to give you a clear idea of what similar lots in the area are selling for so you can set a competitive price for yours.
7. Hire a Local Realtor (Optional)
An important option to explore is whether you want to hire a realtor to list your land. You will want to research the local area and if any realtors have active vacant land listings and whose properties sell quickly. When reaching out to realtors, be sure to ask what commission they will charge, as realtor commissions for vacant land can be higher than those for houses. In some areas, realtor commissions for vacant land can be up to 10%. When hiring a realtor, be sure you ask how long they are asking you to commit to listing your property with them. Some listing contracts can last up to six months or a year.
8. Choose Your Price Carefully
Pricing your lot is a critical component in the success of selling it. To price land effectively, you need to make sure that it hasn’t been set too high. Making the mistake of pricing your land too high can drive away buyers before they have a chance to learn about your land. Setting your price too high will also result in your lot sitting on the market for longer than you would like. Potential buyers who see high days on market will also be concerned over the amount of time your property has taken to sell.
House pricing can be easily done based on things like size, number of rooms, upgrades, etc. Pricing land is a bit more complicated. The value of your land can be based on many factors, such as the lot’s size, shape, proximity to a road, zoning, topography, utilities, proximity to local conveniences and amenities, views and terrain. On top of that, you will likely have far fewer for sale and sold comparable properties “comps” to use than you would if you were selling a home. But, sites like Realtor.com, Zillow, Redfin and Trulia can help you see what other properties in the area are selling / sold for.
When setting your price, you will want to consider your own needs, as well as why you are selling. If you are wanting to sell quickly, you may have to choose between getting the highest possible price and selling quickly. If you are hiring a realtor, they should be able to help with setting a price, but it’s a good idea to do your own research as well.
Want to get a quick idea of what your land is worth? Fill out our no obligation offer form today!
9. Consider Owner Financing
Decide whether you would like to offer owner financing. Owner financing is where the buyer pays you in smaller, monthly payments, (plus interest), instead of in one lump sum. Owner financing attracts more buyers because it is hard for buyers to get traditional financing for vacant lots.
There are two ways to go about owner financing. The first would be to have the buyer sign a promissory note committing to paying the full amount and then transferring the title for the land from your name to theirs. The other way would be to have you and the buyer both sign a contract that promises the title will be transferred to them after they have made all of their payments to you. You will want to establish expectations for payment dates and amounts and clearly outline the terms of your owner financing in your documents.
If you do offer owner financing, remember to do a background, employment and credit check to make sure the buyer is able to make payments on time.
10. Show Your Property At Its Best
Marketing vacant land can be particularly challenging when it is in a different town or different state. Since vacant land does not have a home or other structure to offer a visual of what the land has to offer, adding compelling photos and other information becomes extra important. You will want to hire a photographer to highlight all of the attributes of your land, such as trees, terrain, access, utilities, views, surrounding areas, amenities. Ask them to take pictures of your lot from various angles while there is good light.
If your photographer can obtain it, drone footage offers a unique perspective of your land and can be edited using online video editing tools and posted on hosting sites such as YouTube for free. You can usually find photographers on sites like Thumbtack.
Other information and documentation will be important to list. Such information includes maps and directions to your land, any easements, zoning, permitted uses, surveys, information on utilities and HOA documents (if applicable).
If you are in the area, you can offer to show your prospective buyers around your property. When selling out-of-state, you can offer your video as a visual walk through and allow your prospective buyers to visit at their leisure and call you while they are at the property so you can highlight property attributes.
11. Property Signage
You may want to consider placing effective property signage that will stand out to neighbors and passersby. When creating your sign, be sure to highlight important information such as size, price, attributes and your contact information. Be sure they are big enough and sturdy enough to stay upright on your property and to withstand weather. When placing your sign, make sure they are placed in such a way that everyone passing by the property can see them from a distance. If your property is out-of-state, you might be able to ask your photographer to place it for you.
12. Determine How and Where You Will Market Your Property
How you market your property may depend a lot on who your buyer will be. And, the kind of buyer who will want your property will depend on what kind of property you are selling, where it’s located, whether it has been developed and other factors. Is your likely buyer someone who will use the land for recreational purposes? Is it a family looking for a lot for a new home? Is it a builder or developer looking for land for their next project? Or, is your buyer some combination of those, or someone different altogether? Again, this answer will vary depending on what kind of land you are selling.
Once you have identified what kind of buyer will want your lot, put yourself in their shoes and ask yourself what kinds of information would you want to know about the property if you were looking to buy it. For example, if you are selling a lot in the mountains that might appeal to a nature enthusiast, perhaps you will focus your messaging around campaign, hiking, hunting and other outdoor activities in the area. If it is a suburban lot ready for a new home, you might focus on describing nearby stores, schools, parks and other amenities.
Now that you have developed your message, it is time to get it listed. You will want to target people specifically that are looking for vacant land, which means you will want to use websites tailored towards buying and selling vacant land. Land.com, LandWatch.com or LotNetwork.com and Land-Listings.com are a few examples of such sites. Some will charge you a fee or a subscription to list your lot. You might also utilize social media (Facebook, Instagram, Craig’s List), online auctions, live auctions and classified ads to reach more people. A real estate agent can help with some of this, but they will charge you for their services.
The easiest way to sell land, especially a small lot, is to find a land purchasing company online. Be sure to find one that will close quickly with cash and handle the paperwork and deed filing for you.
13. Reach Out To the Neighbors
While you would probably not go to your next door neighbor as a potential buyer if you wanted to sell your home, selling vacant land is different. With vacant land, the adjacent property owner may be a strong candidate for buying your land. They may want to buy your vacant land to buffer their own land from development or they may want to increase the value of their own property. If you are able to obtain the contact information for the neighbors, consider writing them a letter or calling them. Another option might be to contact builders in the area to see if they are interested in your property.
14. Summary and Alternative Options
We hope this list has been useful as you navigate selling your property. While the process to effectively market and sell your property may seem overwhelming, when taken in manageable steps, it is achievable.
Not wanting to go through the time, expense and chance of trying to sell your out-of-state or local land? You can save time and money by selling your land directly to an individual or a company that will buy your property for cash and close quickly. We are ready to make a cash offer to buy your land today. Click here and we will send you a cash offer within just a few hours.