Lou Jewell's ALC Tips About how to Sell Land
Land is finite and as our world population ever increases, there is constant demand for its many uses. All Land has one or more potential uses, even if you think it is just holding the earth together. Determining the "Highest and Best Use" of the Land will help establish how to price and market it.
All property is zoned for specific use. It may be commercial, agriculture, rural, mineral, wet land, pasture, recreational, etc. Your local Planning Board or office of jurisdiction can help determine its current status and suggest to you its potential uses if adequate. If you feel that there is a better use, discuss the possibilities of "Rezoning" or getting a "Variance". Rural property may fall under you state's agriculture guidelines. Not all areas have a Planning Board. Contact the county or territory office where your property is located. If your property extends into one or more states or counties/territories, you will want to contact all of them.
Now you have decided the "Highest and Best Use" potential of the property, how do you determine a price?
Land has several values. Tax value is what the local government agency assesses the property and in most cases is not the "Current Market Value", usually much lower. A current appraisal will provide a good indication of its value based upon similar sales in the area of like properties. It is not a bad investment to have that in your marketing war chest. Most Realtors® will provide a "Free "analysis called in the industry a CMA (Current Market Analysis). It is similar to an "Appraisal" using comparable sales verses listings of like properties in the "subjects" area. Your local Tax Assessors office can also provide you with resent sales of like properties in their jurisdiction, also "Free". Remember Land is only worth what someone is willing to pay. The more demand there is in a given time; the more it is worth if properly marketed. Your personal motivation for selling may play a significant part in the amount realized. Do your homework so you know what to expect and be prepared to back it up to any potential buyer. Buyers will respect your more and probably pay you what your research has shown or more. There are always exceptions. Also check with your account about possible tax consequences when you sale. You will want to factor that amount into your pricing decision. Do not "over price" your property you are just wasting your time and that of others. If the market indicators do not justify your asking price, then wait until the market adjusts. Determining correctly the "Highest and Best Use" of the property, will maximize its potential.
Now yow have determined the "Highest and Best Use" for your Land and a range of "Current Market Values", which will guide you to, how to market and what price to list it for. Leave a little room to negotiate. Every buyer wants a "deal". Land sales will run from 3% to 10% of asking price as a rule. More discount than a home.
There are several vehicles in which to promote the sell of Land. Research how and where other property owners advertise their property. After reviewing how others describe their property, then also look at what they show to promote theirs, then sit down and describe your property and assemble the visual material you will use to promote yours. Land is best shown with lots of color photos. Land is also perfect for a "Virtual Tour", it's like standing there and you can narrate too. The use of a "Survey or Plat Map", "Tax Map", "Aerial", "Topo" (Topographical Map) and a "Site Location Map" are essential to providing the best overview of the property. If you do not have a copy of your survey, contact the surveyor who did the work and get a copy. If the survey was recorded, you can get one from the "Registrar of Deeds" office. The tax map, aerial and topography map should be attainable from the county mapping office. A lot of areas are now on-line and you can download free.
Make sure you have your "Deed" or copy of. You can get one from the "Registrar of Deeds" office in your area if you do not have one. Most deed offices are "on-line" now and it is free to download a copy. Also make sure your have a copy of and understand completely any "Protective Covenants" and/or "Easements" encumbering your land. You will need to "disclose" these documents and there contents to any perspective buyer. While you are contacting the tax office, get a copy of your tax card record. There is valuable information on there that will come in handy, like the "Property Identification" number or "Tax Id: or Parcel Id: Number". This is an identification pertaining to your property specific. All government web sites use that number/s to locate your records for obtaining, on-line tax cards, aerials, topo's, tax maps, fire districts, soil types, etc. They also use the owners name to locate property specific.
You contacted the "Planning Board" office to determine the "Highest and Best Use" of your property, so you should have asked for copies of any zoning ordinances or other "required uses" of your property. Most board offices now have this information in a PDF file format. You will need to disclose this to any buyer. Assemble any other document pertaining to your Land, copies of any "Easements" for access if your property does not have ample "Road Frontage".
This may also determine the "Highest and Best Use" for your Land.
"Longitude and Latitude" is important to identify your specific location of you Land. Several web sites will have this information. This too can be a source for "Aerials" and "Topos" and other useful information.
Does your property have public or private water and sewer available? If so, who provides these services? If not, do you have a soil test affidavit or "perc" permit? Your county or area "environmental health" department will have information.
Who are the "power", "telephone", and "cable" providers? Do they charge for installation? What are their names? Go ahead and get this information. Your buyer will want to know.
If your property has any "mineral rights", "timber", "water rights", "soil evaluations", "site plans", etc., you will also want to have that available for your buyer as well.
The more information you can provide in an easy to use format, the easier it will be to market your Land. Any astute buyer will discover this information during their "Due Diligence" examination period of your property. It will save you a lot of time and hassle to assemble everything pertaining to your property before you market it. Get it now or get it later.
Now let's look at the different methods used to promote and market the sale of Land.
The newspaper both local and national is an old stand-by and can be effective.
Listing with a Realtor® or Real Estate Broker will provide you with more exposure and they should give you a comprehensive professional marketing approach, with established marketing avenues. You should interview all potential real estate agents as to their experience in selling Land. Have them show you examples. There are a very small percentage that have be trained in selling Land and "Land" commissions are usually higher than "Home". This Land may be your most valuable asset and only be handled by a Land Expert. Consult with The Realtors Land Institute for a trained Accredited Land Consultant or member in good standing in your area. www.rliland.com
Real estate magazines are usually "for the trade only" and are published on a monthly basis. Targeted magazines like "hunting" may provide you with the right buyer if your property is being marketed for hunting.
On property signage is an excellent way to promote your property. Make sure you have a professional design and show the survey outline or even better a color aerial of the property for sale along with good contact information. If it has a specific zone, show that too. (Like Zoned Rural Agriculture) Place the sign in the middle distance between the road frontage boundaries. Mark it with "surveyors" colored ribbon (usually obtainable at your local hardware) and mark heavy. Identify and mark as many corners as you can, but make sure you especially mark the road frontage. Properly marked property is a MUST whether you market it yourself or use a Land agent. If you allow, a well marked property with a good sign will sale your property without anyone showing it. Have a "Take-One" box with all the pertinent information near the sigh and keep it full. (Make sure it has a tax map, aerial, topography map (topo) and property location map).
Web-based marketing is now the number one tool in the successful marketing of Land. That is why you are here. Do yourself a favor and explore our Dan River Real Estate site. It is full of useful information.
Got questions...Have comments...Need help? Then contact us. Our Dan River Team of Experts are here and waiting to help you. It is all hear on this site for you, but best of all, list your property with us and let us show you our marketing power.
Just follow the easy to use instructions, now you have assembled all the information we suggest to make your property the best promoted property in the world of selling Land. We are "Your Complete Land Resource"TM...Welcome.
Your Dan River Team
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