How, when and why to sell land as is
As the leader of Handsome Homebuyer, I have a lot of experience buying land, commercial properties and houses. Not too long ago, we bought what had been a gas station. It was now a brownfield. Many others weren’t interested. Environmental problems are the last thing they want to buy into. But we have extensive experience doing remediation. So we went ahead and closed on the deal, brownfield and all.
If you are selling land with environmental, financial or other problems, you may want to look at selling land “as is” for cash. And in particular, you may want to look at selling to real estate investors with the ability to manage – and even make money, in the long run, from problems. We specialize in fixing problems, not running away from them. You need to make sure you’re talking with buyers able to handle whatever issue you find. If they can’t handle it, chances are they won’t close. Yes, you can invest and clean up environmental problems. But you may want to sell to a company that specializes in investing and improving properties. Take your profits and leave the problems to them. Below are some thoughts on why selling land “as is” and, specifically, to a real estate investor can be a wise route if you find issues with the property.
What types of land do you deal with?
There are many types of land and dealing with each is different, yet all involve the same principles. At Handsome Homebuyer, we have dealt with just about everything from raw land to retail, farms to orchards, residential to industrial. To understand land, though, you have to understand some basic principles across all. The value is not based on what’s there, but on what can be built. That means you need to be able to value land.
- Greenfield Land
- Agricultural Land
- Animal farms
- Infill Land
- Brownfield Land
- Unimproved land
What are some different uses impacting sale?
We have bought farmland and property from institutions such as churches and temples, as well as gas stations, body shops, nurseries, offices, industrial, multi-family and so many more. Each is different. The key thing to remember is, whatever the property, the value is based on what can be done there – and who can do it. And that means zoning.
How important is zoning?
Zoning matters as much to the value of land as the land itself. If a property is rezoned, that can impact the value of land. Still, it’s risky to build possible rezoning into the value of land. It is essential, however, to understand the zoning in order to arrive at the highest and best use. Handsome Homebuyer has zoning experts, so we can find the best uses for land with particular zoning.
The cost of cleanup
Environmental problems can make selling “as is” and to a real estate investor, in particular, attractive. If you have contaminated land, you can clean it up and sell. But that can take time and money. Brownfields require special work. And especially if you aren’t experienced, the clean up involves uncertainty. Selling land as is and to an investor accustomed to remediation, and letting someone else clean it up, may save you time, money and hassle.
Better resources make better buyers
If you are selling land with environmental or zoning issues, it helps if you sell to someone who works with or has people in-house who can handle them. We at Handsome Homebuyer, for instance, have our own in-house permitting division. If there are zoning or environmental issues, we have the resources to solve them, even if they might stall other deals.
Environmental problems aren’t the only ones that can hamper a land sale. If your land is in great shape, but it comes with financial problems, such as unpaid debt, you may want to find a way to sell fairly quickly and for cash. An “as is” sale can help with that. We bought a portfolio of properties with non-performing loans. Whatever the problem, we have people who specialize in managing it.
You may not think of land as being in disrepair, but if a property isn’t maintained, that can be the result. Broken fences or other lack of maintenance can damage curb appeal and cash offers. You may want to invest in fixing that all up, but if you’re going to sell it, you may want to sell “As Is” and let someone else deal with those issues.
If your land is on a slope, that can lower the value. So can erosion. And hills generally don’t help. Anything that makes it more costly or difficult to build can lower the offers that you get. You can take measures to deal with these things, but if you sell to someone who plans to invest, you can let them worry and do the work.
Why Handsome Homebuyer?
Handsome Homebuyer specializes in buying land, residential and commercial properties. That means, whatever the land, we have expertise in a wide range of uses. We have the knowledge, the cash and the commitment to follow through on deals. If you’re looking to sell land, whether it’s raw land, farms or plots in suburban settings, we have done a deal like it before. We can find the highest and best value for your property, which means we can make what may very well be the best offer. And since we have cash on hand, we can close. If your property is pristine, reach out to us. But if you find environmental or other issues, you also might want to talk with us.