Selling land is similar to other real estate transactions in that the land must be properly marketed, shown to interested buyers, and negotiated/ closed diligently. There are various things that you should take into consideration in order to maximize the profit and ensure a smooth selling process. However, it is equally important to know what not to do when selling land. Here are some key points on what to avoid when selling land.
Being Uncertain Who is on the Deed
To avoid any future issues, it is crucial that property owners ensure that they are clear on if they have a legal right to sell their property. If the land is jointly owned, all parties must agree on the sale and be included in the transaction. If there are any discrepancies or doubts, it is important to seek legal advice to avoid potential lawsuits or issues with the title.
Not Knowing Enough About Your Property
Understanding your land and its value is crucial for the entire process of selling your land. From setting an asking price to marketing it to the proper audience, you must thoroughly know your land. Here are some crucial factors:
The exact size and dimensions of your property, including the property boundaries. Property owners may need to consider hiring a land surveyor to conduct a boundary survey, which is a type of survey plan that thoroughly outlines all corners and easements crossing the property.
The type of zoning the property is situated in. Zoning regulations can heavily influence how the property can be developed in the future, so it is important to understand these restrictions and include it in any land sale contract.
Any potential hazards or environmental concerns associated with the land, such as flood zones, wetlands, or endangered species habitats, as these can affect the value of the land.
LandGate can help you learn more about your land and it’s potential value in our free property reports:
Setting the Wrong Price
Before setting a price for your land, it is important to conduct market research in the area. This includes researching recent land sales in the area and comparing them to your property's features, location, and size. Additionally, consider factors such as the current demand for land in your area and any potential future developments that could impact the value of your land. When it comes to setting a price for your land, it can be helpful to work with a local land broker who has more knowledge and familiarity of land values in your area.
Not Utilizing Proper Marketing Techniques
Marketing plays a crucial role in selling land. Many potential buyers may not even know your land is for sale unless it is properly advertised and marketed. Getting your land listing in front of as many potential buyers as possible is crucial for succeeding in a competitive market. Some key marketing techniques to consider include:
Utilize online marketplaces, such as LandGate.
Include high-quality photos and videos- these are much more effective than text, and are more likely to be shared.
A local real estate agent (who has familiarity with land transactions) can help you market your property to the right audience. LandGate can refer you to a local real estate agent.
Not Following Up With Leads
Although this seems like an obvious one, it is crucial that property owners who have listed their land for sale follow up on quality inquiries and offers. Missing a call or email from any prospective buyer can delay the process and mean that you miss out on a fantastic offer.
Not Properly Closing the Sale
Closing a land sale can be more complex than closing on a traditional home. It is important to ensure all legal paperwork is in order and that there are no title issues, such as liens or conflicting ownership claims. Additionally, make sure any contingencies outlined in the sales contract are met before finalizing the sale. This may include obtaining necessary permits or finalizing any financing arrangements. It is always recommended to work with a real estate agent or an attorney during the closing process to ensure all legal requirements are met.
How to Sell Land Successfully
Selling land can be a profitable and rewarding experience if done correctly. There are many considerations that property owners must keep in mind when selling their land. By avoiding common mistakes such as not fully understanding your property, setting the wrong price, neglecting proper marketing, and not properly closing the sale, you can ensure a smooth and successful land transaction.
Always seek professional advice and thoroughly research your options before making any decisions when it comes to selling your land. So, always be cautious and take the necessary measures to make sure that your land is marketed correctly in order to attract potential buyers and yield maximum profit.
Property owners can list their land for sale for free on LandGate's online marketplace for exposure to hundreds of high-intent buyers. It starts by generating your free property report on our map, which will provide you with valuable data about your land that can be used to help with understanding your land and your future marketing efforts:
