Selling land takes longer than selling a residential home. It’s also a process that requires more patience. You’ll have to work harder to help prospective land buyers envision what they could do with the property and convince them that buying the plot of land is an investment that would pay off. Moreover, the land market is less active than the residential housing market; simply put, there are fewer property buyers searching for land. As a result, you might receive fewer calls from potential buyers while selling a piece of land than if you were selling an existing house in the same neighborhood. But even though selling land privately can be challenging, it can be a successful endeavor if you have the right mindset, skills, time, and energy. Here’s everything you should know about how to sell land privately and make the most out of it.
Sell the Property to ‘We Buy Land’ Companies
Selling the land to professional companies that buy undeveloped land is often the easiest and quickest way to earn cash for your land. Going down this route means you’ll leave the hard part to the land buying company and bypass the overwhelming paperwork. Additionally, they will cover the title, escrow, and closing costs and you will also save up on listing fees and broker commissions. The process starts with you getting an offer for your land. Once you agree on the price, you’ll sign a purchase agreement followed by signing over the deed and getting paid.
Create a Buyer Persona
People who purchase land are very different from those who purchase houses. Creating a buyer persona can help you arm yourself with the knowledge most pertinent to them and find the right selling point. For example, learning everything there is to know about the nearby schools, retail districts, restaurants, and other amenities could help you close the deal if your target buyers are young families. Similarly, if there’s interest in building vacation homes in the area, be sure to point out the stunning views, the closeness to nearby attractions, and other relevant features to potential buyers.
Learn How to Deal with Tricky Questions
Organizing land viewings, giving information, and answering challenging inquiries from prospective buyers might consume much of your valuable free time, especially if you already work a full-time job. In addition, you might not feel confident answering questions about construction materials, consent concerns, and more.
However, there’s another side to it. Interacting regularly with potential customers and doing business directly with people will help you gain a sense of the market. You can also gather all the essential information that might interest potential buyers. Selling your home privately can be a lot of fun if you are comfortable with sales and have strong negotiating abilities, so take the time to become better at this.
Demolish the House Before Selling the Land
Sometimes, it can make more sense to demolish the building sitting on the plot of land for sale. This stands true for old buildings in poor condition and functionally redundant or hazardous materials inside the structure. Demolishing a house before selling land by owner is also beneficial when the structure has a faulty foundation. Conduct research and evaluate the pros and cons of demolishing the house before putting the property on the market. Each situation is different, so it’s crucial to determine what would help you maximize the property’s market value.
Prepare the Land
Keeping the land cleaned up, mowed, and free of debris is essential for taking good pictures and leaving the best first impression should someone decide to come and visit the parcel. Furthermore, you should consider planting trees and wildflowers to enhance the property’s aesthetics. It’s also a good idea to get a land survey, mark the property lines, and install a fence so prospective buyers can understand how big the property is. This will also prevent any hiccups down the road.
Finally, you might need to grade your land. In addition to enhancing the curb appeal, grading can sometimes be necessary from a safety perspective. Land buyers would want the best drainage system possible and appropriate grading to stop runoff and erosion.
Price the Land for Sale
Setting the price right can be tricky when selling land privately. If you price it too high, it will scare potential buyers off. As a result, the property might sit on the market for a long time, so you’ll ultimately have to sell it at a lower market value. On the other hand, setting the price low could mean you’re losing money.
As a private land seller, you’ll need to conduct market research in your local area to understand several vital points, such as how long an average property sits on the market and how much properties similar to yours are advertised for. Knowing the comparable sales facts and figures will help you craft a better selling strategy and set a fair price.
Hone Your Marketing Skills
When selling the land on your own, you’ll also be in charge of the marketing part. The best option is to use internet listing services to make it visible to potential purchasers. The key is to take high-quality images that showcase the property’s true potential. Don’t forget to craft an appealing property description that answers the most commonly asked questions. You can also utilize print media, such as newspaper ads and flier drops. Finally, don’t overlook the importance of social media platforms. Running Facebook ads is one of the most cost-effective marketing options.
Talk to the Neighbors
Checking in with the neighbors who live close to your undeveloped land is something an experienced land seller would do. They might decide they wish to purchase the land themselves. It’s not uncommon for people to do that in order to maintain their privacy and prevent nearby new construction.
Final Thoughts on How to Sell Land Privately
The private sale of land has numerous benefits. However, it also requires patience, time, and certain skills. If this is your first time selling land, choosing a “we buy land” site such as SimpleLandSelling can significantly reduce the stress levels, while guaranteeing you a top dollar for your property!