Buildings: This chapter is intended to address land-only sales. Obviously, if your land has buildings on it, those can add significantly to the value. If the buildings are of any value, that is, a livable house or a barn or shed in good repair, this may be harder for you to estimate or to compare with others. About the best you can hope to do is to compare the number of rooms/bedrooms, the square footage, the general condition, and overall appearance. If the buildings are of marginal value, give them appropriate ranking, however as advice to a potential seller of real estate (I’d tell a potential buyer something else) don’t discount that shack or hovel too severely. A lot of buyers seem to feel somehow assured if there’s a structure of any kind on a property. Maybe it seems less intimidating than starting with empty woods. So if it doesn’t leak too badly, and isn’t going to fall down in the next few years, you may consider bumping the price up a few thousand dollars, or leaving it where it is so that the building provides another inducement to buy.
The one technique for how to sell a piece of land that is the same for home sales is using imagery to help buyers get a feel for the property and to help them get a sense of what they can do with it. For example, when you’re selling a home, you want to include plenty of photos with the listing and hold open houses so people can get a feel for the house. You want to clear out clutter and stage your home so buyers can visualize themselves living there, without being distracted by photos of your kids.
If you have created a land contract, youll also need a memorandum of land contract. This is, essentially, an abbreviated legal document that references the main contract created. This simply serves as a public notice that the buyer is interested in the property without you and the buyer having to disclose and record the entire land contract. Because the deed of the property will not be filed until youve received full payment on the purchase price indicated in the contract, this memorandum will be filed with the county and the city to serve as a record that the buyer is interested in the property.
If there’s a lot of money involved in this deal (like, more than a few thousand dollars) and if you’re AT ALL unsure about their level of competence or trustworthiness – then I wouldn’t hesitate to push for a professional title company or closing attorney to get involved. That will resolve pretty much all of the issues that can come up in this kind of scenario. If you don’t know them well, then you have every reason to be skeptical for your own sake.