7 Simple Steps for Selling Land

$16,411 per acre, that’s how much land is selling for currently. It’s 300% more than the previous year’s rate of $4,080. This sharp rise gives a golden opportunity for you to get higher returns on investment. The demand for land is currently high due to urban expansion, agricultural needs, and new constructions.

However, it might be a tricky situation to set the right price for your land. Overpricing or underpricing can result in missed opportunities or financial loss. Also, it’s overwhelming to market and do paperwork on your own.

A Realtor can help you sell land easily but it will be a strain on your pocket. You have to pay a 5% to 6% commission to a Realtor. To simplify the process and maximize your savings, you should list and sell your land without a Realtor. If you list on the MLS like Houzeo, you can save 3% on listing commission and leverage the technology.

7 Steps on How to Sell a Land

Here’s how you can sell your land and gain maximum profits:

Step 1: Identify the Best Use of Your Land

Figure out the best use of your land so that you can get its optimum value. Consider taking these 4 tests before you list your land:

• Physically Possible Uses: Check what your land is good for! Consider your site’s size, accessibility, and soil conditions. For example, a flat land with fertile soil can be ideal for home construction or agricultural purposes. Whereas, rugged, mountainous land could be better for a remote cabin or scenic hiking. Such factors may increase or decrease the land’s value.
• Legal Tests: Check for any legal restrictions and regulations on the land. The non-permissibility of construction or any other activity may negatively impact the land value.
• Financial Feasibility: You must consider construction costs, market demand, and return on investment from your land. To analyze these factors, you must calculate the cash flow generated from the land.
• Maximum Productivity: Both the sellers and the buyers should consider the net present value (NPV) and rate of return of a project. For example, if a project is too risky, it will not give high returns and may not be of the best use.

Step 2: Price Your Land Accurately

You should be careful of the market conditions while you price the land. Overpricing can deter potential buyers while underpricing can lead to financial loss.

You can conduct a comparative market analysis on recent land sales in your neighborhood and set a competitive price. Besides this, seasonal changes, location, and region of your land can influence land’s value. For example:

• Spring and Summer: Buyer’s interest typically peaks during these seasons. This happens because of the renewed vegetation, and sunny and longer days. Additionally, if your land has desirable features for outdoor properties (pools, gardens) you can list your land for a higher price.
• Late Summer and Fall: Agricultural lands with crops yield better prices. And, in this climate, you can price your land high for its timber trade. Additionally, if your land is located near any popular winter activity area, you may increase your asking price.

Be aware of the seasonal fluctuations and adjust your price accordingly. If you want help to correctly price your land, you can get professional help from a real estate agent.

Step 3: List Your Land on the MLS

List your land on the MLS to increase the land’s exposure. Present your land’s best feature. Also include surveys, drawings, and income estimates in the listing. Write your property description to provide beneficial information for buyers.

Your next step is to list on the MLS. If you opt for a traditional Realtor, they charge a 2% to 3% commission. However, with Houzeo, you can list your land for a flat fee and save on commissions.

Step 4: Alternatives to Sell Land

There are 4 options for you to sell your land. The time it takes and the amount you receive differ based on each option:

1. List with a Discount Real Estate Broker: The best discount real estate brokers offer all the services traditional Realtors offer but at discounted rates. They usually charge 1.5% to 3% commissions to list your land. This can be a good option if you are comfortable handling some other aspects yourself.
2. List with a Full-Service Realtor: We do not recommend a full-service agent, who can charge you nearly 5% to 6% of the closing cost. Although you’ll get all the professional help required it will cost you thousands of dollars.
3. Sell to a Cash Buyer: A cash buyer can make a cash offer instantly and help you sell your land. Individual investors or companies can close the deal within 24-48 hours. However, you might receive less compared to the traditional market.
4. Sell “For Sale By Owner”: Selling land by the owner or through For Sale By Owner websites means huge savings on commissions. From listing your land to managing offers and showings, you handle it yourself.

Step 5: Complete Paperwork

Before selling your land, it is important to prepare all the important documents. The required documents are listed below:

• Purchase Agreement
• Land Contract
• Purchase Counter
• Title to the Land
• Sale Deed
• Disclosure Agreement
• Closing Statement

Step 6: Review and Negotiate

The next step is for you to review the financial terms and negotiate with the buyer. It’s tempting to go with the highest bid, but you should always check these factors before settling:

• Is the lot buyer making a cash offer?
• Has the buyer applied for a mortgage and is it pre-approved or pre-qualified?
• Are buyers open to negotiating closing costs?
• Are buyers willing to waive off some financial contingencies like land appraisals or inspections?

Clear out these above-mentioned points and maintain clear communication with your buyer. This will help the negotiation process to remain smooth. It will also allow you to choose the best possible buyer for your land.

Step 7: Close the Deal

After accepting an offer collaborate with real estate attorneys or title companies to finalize the sale. You need to consider the following aspects to close the deal:

• Financial Factors: Finalize the buyer’s finances and be clear on the closing costs.
• Legal Documents: Clear legal requirements like title issues, disclosure, permits, and zoning laws.
• Project Completion: Complete agreed-upon repairs and renovations.
• Secure Transaction: Use escrow agents to transfer funds and documents securely.
• Tax and Proration: Ensure property taxes and other assessments are prorated accurately based on the closing date.
• Signatures and Notarization: Ensure both parties sign and notarize all the required documents.
• Record the Deed: After closing the deal, record the deed in your nearby county office to transfer the ownership.

Can I Sell My Land Without a Realtor?

Yes, you can. FSBO is a good way to sell your land, as hiring a real estate agent will cost you a 3% commission. However, it requires extra effort to do all the paperwork, marketing, and showings yourself. If you prefer a more hands-off approach with expert guidance, Houzeo provides the ideal solution.

Our flat fee plans can help you save thousands in commissions, and list your land on the MLS without a Realtor. Houzeo is a legit tech real estate platform. It gives you access to tools only real estate agents have at an affordable flat fee.

5 Easy Steps to List on MLS

Here’s how you can list on the MLS in 5 easy steps.

» Need More Clarity? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.

Frequently Asked Questions

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