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Originally Posted On: https://www.sellland.com/blog/5-steps-to-selling-land-by-owner/
Are you looking into easy and quick ways of selling land by owner for your property? Then look no further because what you seek, you have just found.
Selling land can be a daunting task. Without the proper information, you may end up selling your lot for a fraction of the market price. Unlike other investments, your land does appreciate; therefore, it is essential to be strategic when selling vacant land.
A quick read of this guide will equip you with the essential five steps to selling land by owner and other critical information to know beforehand.
Before that, here’s a quick insight into the pros and cons of selling vacant land without a realtor.
Pros and Cons of Selling Land by Owner
While most people opt to engage the services of a land broker or a real estate agency to sell vacant land, others prefer to take on the task themselves. Land sales by owners can be challenging yet equally satisfying.
Pros
Engaging a real estate agent means that you have to part with money for a commission. All agents request a typical commission on lot sales. However, by selling the land directly, you get to keep the entire total amount.
In most cases, the typical commission is a percentage of the closed sale amount. So, for example, if your land sells at $250,000 and a land broker requests for 15%, you have to pay them $37,500.
More so, selling the parcel yourself gives you absolute control of the process. This makes the process less complicated, and you don’t have to rely on other people’s opinions.
It is best to trust your gut or instincts. Views from third parties can affect your strategy, and you may end up not achieving your goal.
Finally, being the sole proprietor, selling your land means you get to give it your full attention. Unlike land brokers who deal with more than one property at a time, you get to concentrate on your land and identify the right buyer.
More often than not, a land broker may hasten the process to attend to a different client. Unfortunately, this can cost you by altering your land selling process or not getting the amount you intended.
Cons
First, while you may end up saving money by selling land by yourself, you also end up missing out on the vital role that land brokers play.
With amassed experience within the industry, land brokers are familiar with the intricacies governing a land sale.
However, prior research can help you cover this con. Therefore, it is essential to ensure that you obtain all necessary information before committing to a sale.
If possible, create a checklist to ensure that you have all the relevant documents beforehand. Second, the sale of land requires a considerable amount of time.
If you work around a tight work schedule, it may be impossible to achieve this goal. However, a committed land broker would devote their time to the selling process as they work to get you the best value for your land.
What Documents are Needed to Sell Land
Land transactions usually require a considerable amount of paperwork. Therefore, having all your documents ready in advance is the best way to sell land.
More so, most clients shy away from sellers who provide little to no paperwork during transactions; thus, consider preparing the following:
Purchase Agreement
A purchase agreement indicates the agreed buying price of the parcel of land. Also, purchase agreements contain conditions that surround the purchase of land.
It helps in providing a clear outline of what you expect as a seller. After which, it is then up to the buyer to decide whether they could comply or not.
Disclosure Form
In case your land has any environmental issues, a disclosure form will help in highlighting it. In some states, this form is mandatory. For example, if your land has rocky terrain, it is essential to highlight this.
Contract for Sale
A contract for sale is one of the legal documents for selling land. The document is an agreement that binds you and the buyer legally. The agreement lays out the terms and conditions that should be adhered to by each party.
In addition, the contract helps in easing the land transaction process by stating other vital documents needed. Therefore, it is essential to have this document drafted by a lawyer and include a section for third-party witnesses to sign.
Deed
A deed is a legal document showing ownership of land. A deed is the final and most crucial exchange of the transaction. Depending on how your negotiation goes, you can provide a contract of the deed before or after the close.
Closing Statement
A closing statement is a reconciliation of all the transactions made when finalizing and closing the land sale. In addition, both the parties receive a copy of the closing information to affirm the conclusion of the sale process.
As a seller, you should confirm receipt of all transactions before finalizing the sale.
Steps to Selling Land by Owner: How to Sell Land Myself
As a landowner, for you to sell your land successfully. It is essential to follow proven guidelines for marketing your land to land investors, setting prices, and providing an accurate description of your land.
These steps will provide you with the proper insight on how to sell land.
How much is my land worth?
Before securing land investors, it is essential to set a cost-friendly price. The market price should dictate the cost of how to sell property in your area for cash.
A cost-effective way of ensuring this is through the use of an appraiser.
Hire an Appraiser
An appraiser will help you in estimating the value of your property against the market price. Therefore, it is essential to hire a competent appraiser to assist with working on this value.
Online Calculations
You can also consider using an online land value calculator that can help in the costing process. Most of these online platforms make use of comparative property valuation methods.
Whereby the price of your land is compared to other land parcels bearing similar characteristics.
Comparison to Similar Land
It is also essential to consider the resources that are within proximity of your land. Land parcels near natural resources such as water may have a higher price affixed to them. In addition, selling land in Texas that is inaccessible or ‘land-locked may warrant a lower value.
As you make comparisons while selling undeveloped land, you should also consider the utilities available on your ground. Access to phone lines and electricity increases the value of your land. You can use this as a costing measure to give your land a higher price than those without utilities.
Selling vacant land bears the benefit of having plenty of other land parcels for price comparison. However, if your land parcel has buildings, it is evident that the price will be higher.
A straightforward approach would be to compare the square footage and number of bedrooms or rooms of your building with others.
When learning how to sell vacant land without a realtor, additional factors to consider during pricing are whether any improvements exist in your land, such as setting up a boundary wall.
Market Your Land
With your price in mind, the next step is to put your land out there. For fast results, you need a proper advertising strategy to reach a wider audience.
You can make use of Multiple Listing Services that charge an annual fee for advertising. Alternatively, you can use social media pages when selling land in Texas to sell land online.
You can create a filter on the internet for land wanted adverts to connect you to potential buyers quickly.
The downside to this is that you may fail to reach a target audience. As a result, this may lead you to take more unnecessary time to sell a particular piece of land.
A cost-effective way of marketing is by informing your family, friends, or colleagues about your land. This can help you reach prospective clients at a much faster rate.
Your family or friends may also spread word of mouth, leading to more significant exposure when you have land to sell.
Video Marketing
If these methods do not appeal to you, you can consider the use of video marketing. Videos have become essential tools for displaying content.
From learning institutions to businesses, videos effectively reach target audiences and convert prospective clients into returning customers.
Making use of video marketing can help you attract your target audience. It is also an effective way of providing a visual appeal of what you are selling.
Consider hiring the services of a professional videographer to capture every aspect of your land.
How to Describe My Property When Selling My Land
After identifying a suitable platform to market your land, the next step is to describe your property explicitly. This will involve collecting lots of information relating to the local area, geography, and terrain, a copy of the survey, and a well-jotted description.
As you develop your description, remember to incorporate the use of Google Adwords or Search Engine Optimization. The use of optimized words will help you draw more traffic to your page.
Aside from online marketing, you can embrace the use of flyers and brochures to sell your land. You can also consider erecting a ‘for sale’ signage with your contacts included.
This is a cost-effective method of advertising since the client gets to view the property beforehand. However, when drafting up a description, it is essential, to be honest.
A common aspect that buyers shy away from is adverts with narratives that do not depict the true nature of the land.
If your land has an issue that may warrant it impossible to sell, it is essential to invest in the remediation of the problem before listing it out.
In case of any irredeemable issues, ensure you include them in a disclosure form during the transaction. It is essential to provide as much information as possible.
With this, you can quickly sift through potential buyers and narrow them down to your target audience. Leaving out vital information such as utilities and road access can make you miss out on potential buyers.
If you are not proficient, you can hire a writer to provide eye-catching details of the piece of land. A blend of words can make heads turn and pique interest in a lot of buyers.
What to Include in a Description as I Sell My Land
A key strategy in your listing description when listing land for sale by owner would be to describe the potential of the land. For instance, if it is within an area where development is ongoing, it can be a good selling point to show possible land appreciation.
After identifying your target audience, you can include elements in your description that appeal most to them. For example, if your target audience is young families, you can enlist nearby schools or hospitals and the approximate distance from the land.
If you run out of words in your description, be sure to include plenty of photos for corroboration purposes. You can also consider taking pictures of nearby features to provide an aesthetic appeal to potential buyers.
Decide on Seller Financing or Selling my Land for Cash
What attracts more buyers to a property is the option of flexible finance. Therefore, you need to decide whether to provide a financing option to your potential buyers or not.
The advantage of this is you will easily attract potential buyers and even set a higher price for your land; however, you won’t get the total value of your property upfront.
With financing, you get to decide on the number of instalments and interest rate as well. If you settle for flexible funding, it is essential to draft up a land contract with witnesses and, where possible, legal representation.
This protects you from future liabilities in case a buyer fails to make an installment.
If a buyer fails to make a payment, you can file for the forfeit of the land contract. This will immediately take away ownership rights from the buyer and any previous amount paid for the land.
Make Your Land Appealing
An efficient way to draw in potential buyers is by improving your land’s appeal. One way to do this is through proper cleaning and land conservation. There are three essential areas you need to pay close attention to:
Get Rid of Junk
If it didn’t grow there, you should toss it out. If you previously had a building on the land, make sure to clean out all the debris.
Before discarding the waste, it is essential to review local legislation on proper disposal methods. For example, some states forbid the burning of old tires or any rubber-containing product.
In addition, materials such as asbestos, which is hazardous to health, will require specialized disposal methods.
Accessibility
The easier it is to access land, the more appealing it becomes. So if you can improve the condition of the road leading up to your property, it can increase your chances of closing the deal.
However, you should consider a cost analysis of the road improvement works beforehand. If the condition of your access road is similar to the main road, you can employ light road works, improving its accessibility.
Over time, you can consider complaining to the Roads Board if your property is along a government entity-maintained road.
Clear Bushes
To spruce up the land, clear away the overgrowth of bushes. Potential buyers will be more vested in purchasing lots free from bushes and weeds. If you fail to sell your land fast, you can set a schedule for periodical cleaning.
You can also consider fumigating the area to keep away pests or snakes.
Negotiate and Close the Sale
Negotiating for a land sale in the absence of land brokerage can be daunting. A real estate agent specializing in land sales can help you navigate the intricacies of negotiation until you arrive at a better deal.
Negotiation is an art. It is an essential part to master when learning how to sell land fast. If you are new to the field, it is crucial to get some exercise first.
A common practice by top negotiation is inadequate preparation. For example, you can do a bit of background search on your prospective client. This will give you an insight into how best to tackle the negotiation.
By knowing who your buyer is, you can be able to sell them what they need. For instance, if your buyer is constructing a holiday home, you can point out specific aspects of the land that will appeal to the buyers’ plans.
If you are not comfortable with the initial offer, you may have to go through a series of back and forth. Since most of the initial negotiations will be verbal, it is essential to have the offer written once you come to a consensus.
Closing a Sale
Concerning this, it is prudent to have a few sale contracts ready. The agreements should specify the closing price, installments, location, and closing date.
It is always advisable to be the first person to draw up an agreement. This gives you the upper hand in providing structure to the negotiation and outlines the critical points governing the sale.
Before finalizing a sale, you need to ensure that you know who pays what at closing and the buyer has the necessary paperwork to support the financial transaction. For example, if your potential buyer has taken out a mortgage, ensure you close the sale once the mortgage is approved.
It is common for some potential buyers to enter into negotiations without proper supporting documents. It is a common practice when you sell land in Texas. You don’t want to end up with a land sale that becomes inconclusive due to the buyer’s financial constraints.
An important consideration when selling your land without a realtor is the hiring of a real estate attorney. In some states, it is mandatory to involve an attorney in the closing process. In addition, an attorney will help you gather the relevant documents needed to sell land by owner, update land restrictions, and prepare all legal documents for the land for sale.
Your attorney can also help organize agricultural records such as leases, third party leases, mineral rights, or water rights if you own a ranch.
Consider a Realtor to Sell My Property
If you find these steps to selling land by owner challenging, you can consider engaging a land real estate agent or land broker.
They are much faster, efficient but costly. The good news is the market is full of real estate agents. A quick search on the internet for land agents near me will give you an array of options to pick from.
In addition, having been in the market for many years, they are more versed in drafting documents, handling negotiations, and making a close.
Engaging a realtor can help take the load off and give you the peace of mind to focus on other prudent issues. For example, when scouting for land brokers, you can check the internet for referrals and options for real estate agents near me.
You can revisit the price and offer a range accommodating to you and the potential buyer. Remember also to exercise patience during this process.
To Sell Your Land Follow the Steps to selling Land by Owner Today
The sale of land takes time despite your anticipation to sell land fast. However, it is heavily dependent on how best you market your land. If your motherland doesn’t sell in the first few months, it is crucial to consider restructuring your strategy.
The tips above will guide you on how to sell land without a realtor. However, if you’re not confident in handling the sale yourself, you can engage a broker.
Contact us for steps to selling land by owner. In addition, we buy land. Visit our website to submit your details and get your cash offer today.
