When many talk about real estate, they’re talking about homes and buildings. But what about land? The reality is, even with homes, the land beneath the building is typically a huge part of the value. And selling land is a huge part of the real estate market, even if much of the real estate sales infrastructure focuses on buildings. So how do you sell land, from valuing it to finding a buyer? Here are some tips if you want to sell a wide range of land, from vacant lots to farms. Real estate investors like Handsome Homebuyer specialize in buying houses and land. Here’s information about how to sell your land for cash.
How much is my land worth?
It’s easier to estimate the value of a structure than the value of land, which depends not on what’s there, but what can be built. But there are basic factors.
- Location – The phrase “location, location, location” can be true for land, although it depends on the use of the land. School districts in the suburbs, for instance, can help determine the value of land.
- Environmental issues – The value of land can be impacted by environmental issues. That means knowing issues if any, or risking finding out about them later in the process. It’s possible to sell land with environmental issues, if you find a buyer who can remediate. Handsome Homebuyer, for instance, has bought gas stations considered brownfields.
- Zoning – You need to understand what can be done with your land, whether it’s building a single-family home, retail, mixed-use, apartment buildings or industrial. It isn’t what’s there, but what can be built.
What are the types of land?
Many types of land go up for sale, sometimes by longtime owners and sometimes by estates. These include vacant land, undeveloped land, land with buildings, farms or lots with a variety of structures. Handsome Homebuyer has done deals ranging from farmland to religious institutions such as churches and temples, as well as gas stations, body shops, nurseries, offices, industrial, multi-family and many more. Each of these is different, but we have expertise in a wide range. And properties typically have a value based not simply on what’s there, but on best use.
What is best use?
There are a wide range of types of land, making expertise in dealing with yours important to you and the buyer, but sales all involve best use. Whatever the property, we assess based on best use or the best uses allowed by zoning. What if you want to change zoning?
Rezoning – Best use typically is based on current zoning. Handsome Homebuyer, however, has professional relationships that can help get properties rezoned to achieve the highest and best use. That can be tough, but sometimes we can increase the value of land simply by improving zoning.
How long does it take to sell my land?
Selling real estate, whether it’s land or structures, can easily take months, although it can be much faster if you sell to a real estate investor, such as Handsome Homebuyer. Banks drive the process for traditional sales, although real estate investors like Handsome Homebuyer typically speed the process. We don’t go to a bank or seek a mortgage, so the pace depends on our process, not theirs. The sooner we get deals done, the sooner we can get money to you and proceed with any work we’ll do.
Due diligence – This typically adds many weeks or months to a traditional sale. Commercial land typically involves longer due diligence, lasting 90 days to investigate environmental and zoning issues. In some cases, deals are subject to approvals to build, which can extend into years.
Closing – Closing can add months, as due diligence continues. Real estate investors, like Handsome Homebuyer, do our own due diligence. While real estate lending is part of a bank’s business, it’s the only thing we do. And we do it quickly with our own specialists.
How do I sell my land to a developer
Selling land to a developer can be one way to go, but it also often brings complications that can complicate or scuttle deals.
Contingencies – Developers often reach deals that mean they only have to close if a project is approved or financed. That’s a big question mark that can drag on. Real estate investors like Handsome Homebuyer don’t typically put those provisions into deals.
Can I sell a portion of my land?
What if you want to sell part of your land and, for instance, keep your house? Can you do it? The answer is, in many cases, that’s possible.
Subdivide – If your lot is big enough, you may be able to subdivide or work with a developer to subdivide a property. Real estate investors, like Handsome Homebuyer, have the expertise to figure out whether and how you can subdivide.
Cost of subdividing – Subdividing typically involves a municipality and expense, but can let you keep your house or a portion of the property. Handsome Homebuyer, and some other real estate investors, will assume the cost of doing that through our in-house permitting and architecture resources.
Can I sell part of my land to my neighbor
Finding a buyer for land can mean a search, but don’t ignore the people closest to you – geographically. Your neighbors sometimes can be your best prospects, expanding their property, buying some or all. Zoning always needs to be taken into account. It’s good to get out the word, but don’t forget that your neighbor can end up being the best buyer.
Can I sell trees on my land?
If your property has trees that can be sold as a resource, it’s at least something worth considering. Who can help you sell your trees?
How to sell trees – A forester who sells trees will know timber grades and values and be familiar with local timber buyers and the market. Private foresters usually charge for their service, but they may help you if that’s the route you choose.
Why Handsome Homebuyer?
Selling land means selling a property based on what can be done with it, which means the price often is based on the value the buyer can add. Handsome Homebuyer has our own in-house permitting division, so we’re ready to add value to your land on paper even before building. That means we can pay based on what we can do with your property. And we specialize in a broad range of properties. We can evaluate the most valuable development of land, so we can pay based on potential rather than simply looking at the property. If you’re thinking of selling land, reach out to Handsome Homebuyer. We may be able to reach a deal that will give you a price and a process that you like.