Depending on the property, you may even find that closing the transaction yourself can be faster and less cumbersome for everyone involved. If for no other reason – I've found that it's extremely helpful to have a basic working knowledge of how real estate transactions actually work. It's important to understand why title companies require what they do in a closing, which documents are an absolute must, and which documents are more discretionary in nature.
A somewhat surprising fact about selling real estate is that it can be far more difficult to find a buyer for a piece of vacant land than it is for most types of existing homes. The reasons for this are many, but often they are related to either the location of the land or the amount of work or expense that might be necessary to improve vacant land for a specific usage.
I have a brokerage in Indiana, Kentucky, and Tennessee that focuses specifically in land, so what I have done is created a nationwide advertising service to attract more buyers. I advertise on several investor channels like CNBC, Bloomberg, Fox Business and then also channels watched by people interested in land and the outdoors like the Outdoor Channel.
Perhaps you’ve inherited some land, decided to sell some investment property or are just in need of some extra cash. Either way, selling land by owner can require some extra work but in the long run will ultimately be more profitable than selling with a real estate agent. There are a few things you must keep in mind before deciding to sell land by owner.
In the very least, your land contract should include the address of the property and a full legal description of the land. It should also include the down payment amount, purchase price, the number of payments that will be made, the monthly payment amounts, and any balloon payments that may be required. You may also consider creating and attaching an amortization schedule.
If your house gets lots of attention and you get good offers, stay the course and be prepared to give up a little of your savings to close the deal. But if the process drags on without any real bites, hire an agent. You’ve lost nothing but time, and you’ll enter the agreement with a far better understanding of how it works and how to get the most from your agent.
Hi Walt – certainly. The delinquent tax list could be a solid way to get started. I typically look for land deals when I’m wholesaling, whereas most wholesalers are doing land… so that would be one key difference in the types of deals I look for (mainly because land is a much simpler type of property to work with – even though there may be fewer buyers for this type of property).
Thinking of selling your land? Whether youre working with a real estate agent or selling your property on your own, there are certain documents that youll need in order to close the deal. While requirements may vary depending on your state, there are a few general documents that youll need in order to legally transfer your property to the buyer.
Moreover, even though you’ll not have a lump sum of money to place against another piece of land or some other big-ticket item such as a vehicle or home construction, you will have the guaranteed income to match your payments, or some such new purchases, including the interest. You’ll also get to keep a lot more of the money you’ll receive, because you’ll only pay income taxes in small installments over the years, rather than all at once, which is likely to bump you into a higher tax bracket.
In terms of paying off the mortgage, you’d have to work directly with the lender to make sure they get paid and that they discharge their mortgage. If you’re unsure about how the process works, then honestly – it probably is best to just work with a title company. It may cost a few hundred dollars more – but for a property like what you’re describing, that’s what I would be doing anyway (I use title companies for anything in excess of $10K). They will take all the guesswork out of this process and make it WAY easier to get the job done.
When you sell land by yourself, this is called a private sale. So, you will need to find a private buyer. It may help you to talk with local farmers if you are looking to sell raw land; farmers have all kinds of experience in purchasing land for their crops. If you are selling your land on your own without the aid of a real estate agent, this next section is for you.
The first thing you must do when you have signed a contract to buy a property, especially where there are professionals involved in representing the interests of either party, is to lodge a caveat to protect your interest in the property until settlement. A caveat will stop the vendor from selling to someone else or encumbering the property without notice to you.
Land contracts are security agreements between a seller, known as a Vendor, and a buyer, known as a Vendee. The Vendor carries the financing for the Vendee, which may or may not contain an underlying loan. A main difference between a land contract and a mortgage is the buyer does not receive a deed or clear title to the property until the land contract is paid off.
We are Kansas City's oldest and most experienced real estate auction company specializing in accelerated real estate sales in Missouri and Kansas, including Overland Park, Lenexa, Shawnee, Leawood, Kansas City, Lee's Summit, Olathe, Blue Springs, Independence, Liberty, Kearney, Parkville, Smithville, Gladstone, Clay County, Platte County, Jackson County, Johnson County, Wyandotte County, Leavenworth County, Cass County, Lake of the Ozarks, Lake Ozark, Sunrise Beach, Osage Beach, Four Seasons, Shawnee Bend, Miller County, Camden County, and around the Midwest. Kansas City auctioneers with regional expertise!
While a good agent can certainly help with the negotiation process, he or she also has a vested interest in the transaction. “And closing the deal may in some cases be more important to the agent than getting you the absolute best price,” Schorr says. If you’re a good negotiator and can handle the process without emotion and with clear eyes, you might do better on your own.
Left unattended, vacant land quickly becomes overgrown with weeds, sprouts, saplings and other vegetation that can make it difficult for interested parties to view the property or imagine its suitability for a specific purpose. Even worse, prospective buyers may discount any offer they do make on land that is very overgrown or filled with garbage or other waste.
If Mark has more than one piece of land to sell per week, or if he has exhausted his buyer’s list, he posts raw land investing deals to Craigslist. “Craigslist is the 10th most trafficked website in the US,” he said. “We use a program called Posting Domination. I’m able to automate 124 postings a day, all at the click of a button. It’s unbelievable. So we sell everyday on Craigslist, and we are building our buyer’s list everyday on Craigslist.”