If you own a piece of land that you’re thinking about selling, you need to know how to sell your land the proper way and at the proper time in order to maximize your ROI. Land is one of the most significant investments that you can make in your lifetime. So, if you are thinking about selling your land, you need to be absolutely sure about your decision.
Agents, of course, will charge as much as 2.5% plus GST as commission on the sale of the property which, depending on the price, can be a significant sum. However, if you have done your homework, whether you are the buyer or seller (we call them “purchaser” or “vendor”), it is possible to cut a fair deal, and to have all the documents prepared properly and legally, without the cost involved in having a real estate agent.
Now, when you get into the more expensive properties, as a general rule – it’s usually safer to work through a title company on those (and it’s easier to justify the costs too), and in those cases, you may not have a choice but to do a quiet title action, because the deal won’t close without this extra step. But again, since there will most likely be more profit baked into these larger deals, it may be easier to justify these costs.
If you have plenty of time and are not in a hurry to sell the property, and would like to do very little work I would suggest listing it with a broker. They will be able to create a listing for the property, answer phone call and emails, and handle the closing. The downside of this approach is comes at a price and you typically only get local exposure and most real estate agents who deal with both land and homes will most likely put more effort into selling their homes as the commissions are greater.
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, for whatever reason, you don’t want to use Craigslist, another option is Facebook. Mark said, “right now, people are selling all day long on buy/sell groups on Facebook.” However, these are not the typical raw land investing or real estate buy/sell groups. “They’re going to Craigslist buy/sell groups, recreational vehicles buy/sell groups, hunting buy/sell groups, or fishing buy/sell groups.”
The steps above are fairly similar to transactions that involve owner financing. The primary exception is that a deal that involves owner financing requires a few additional documents. Depending on the state and the specifics of the transaction, some seller financed deals will make the most sense to use in conjunction with a land contract (aka – contract for deed), which I explain in this blog post). Likewise, other seller financed deals will make more sense to use in conjunction with a Promissory Note and Deed of Trust, which I explain in this blog post.
We can get you onto Realestate.com.au with the Biggest Photos & Ad (by listing on our "Premiere Ad" package), Domain and other real estate sites. Sell My Property Now is a real estate agent licensed Australia wide that assists the private property seller, also known as a 'for sale by owner', to sell their home privately for just $558 with our 'Classic' package and pay no commission on your property sale. Selling your house privately has never been easier to do as a private seller.
Land contracts are useful instruments for sellers who are selling a home and contemplating carrying the financing for a buyer. It gives sellers a built-in income and generally a better interest rate than rates offered on money market accounts or certificates of deposit. However, a prudent seller should take steps to protect equity and ensure the buyer can fulfill the terms of the land contract.
If you have an underlying loan, given a choice between a straight contract or a wrap-around contract, offer the wrap-around land contract. It will give you an override on the existing interest rate of the first mortgage. Ask for legal advice about an alienation clause. The lender could call your loan due and payable if the lender discovers you have sold the home through a land contract.
Nowadays all of my favorite software packages come for the same price: free. So I’d check out what’s available at tucows.com or software.com. You can also make a tolerable web page using Microsoft Word (which probably came loaded on your computer) however, if you’ve never made any web pages before, you’ll probably also be needing web-space to put them on, and you can find both web-authoring software and web-space available cheap or free with a little thoughtful web-searching.
You may want to add an ‘escape’ clause, which allows you to keep the house on the market while the buyer sorts out the conditions of purchase (e.g. arranging finance, getting a builder’s report). If you receive another offer during this time, the clause gives the buyer a set number of days in which to go unconditional, and if they don’t you would be free to take up the other buyer’s offer instead.
Schedule and conduct inspections with qualified buyers. Learn how to separate the “lookers” from qualified buyers. Ask for names and phone numbers and be sure to follow up with telephone calls. Be prepared to negotiate with the buyer(s) as an impartial third party. Remain calm and refrain from any emotional outbursts that might spoil a sale or jeopardise your sale price.
Soil Terrain and Vegetation: Most small landowners will prefer a mixture of hill and valley, but level agricultural land is usually more expensive than hilly ground. However, if your property is smaller, say less than eighty acres, there will probably be a better market for the mixed terrain that includes level bottomland and forested hills. Likewise, the best overall market exists for small properties with a mixture of forest and meadow as opposed to all woods or all field.
You should work out a budget for advertising, because it can get pretty pricey. Although it’s not mandatory, it’s a good idea to get a selection of photos of your house showing it at its best, and using these in your advertising. Make sure any advertisements include accurate details about how and when you can be contacted. If you don't want calls from agents offering their services you can include the words “no agents please” in your ads.
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.
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.
If you have unimproved land to sell, you may also find that the majority of agents are more interested in selling more expensive improved properties where they stand to make much larger commissions (and get fewer ticks) so your five acres of woods may get short shrift when it comes to exposure to the market. This wouldn’t be such a big problem were it not for the fact that these days, more and more brokers are insisting on exclusive listing contracts that obligate you to pay them a commission even if you sell the property yourself to the fellow next door.
When we are buying land for our personal accounts, we always try to negotiate immediate possession for “purposes of making improvements.” This catch-all phrase gives us the opportunity to get a head start on simple improvements such as rotor mowing and clearing brush. You must be able to get the Prospects on the property before they can make an informed decision to buy. Often the prime spots which would normally “close the deal” are grown up in briars and brush. In many husband and wife instances, only one partner wants to move out in the country. The husband may be trying harder than we are to sell his wife on rural living, but if she can’t see the creeks, views, and big trees, then neither he nor we will be successful.
Whether you inherited a piece of property that doesn’t mesh with your goals, discovered that you simply need to live in another part of the world, or even if you bought a piece of property and later just fell out of love with it, selling land, particularly in a poor market, can appear to be a daunting task. The amateur’s first reaction is usually to list with a real estate agent and hope for the best.