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.
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 the sellers do find a buyer on their own, despite having a contract with an agent, they may be able to negotiate a reduced commission with the agent. But the sellers should be up-front about their potential to find their own buyer when drawing up the exclusive-right-to-sell listing agreement, says Markel. Maybe they know of a friend of a friend who is looking for a house, or they plan on marketing their home on social media.
They are contractors looking to sell and move out of state for work. We viewed yesterday. They are renovating most flooring and walls due to sloppy relative that used to rent while they were out of town for work. Being contractors, I’m sure most materials are cheap or free for them to obtain, but they are finishing this before leaving. We are aware that it is a fixer but it’s totally liveable! Mainly cosmetics or personal preference will remain and we’ll own it.
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.
At the showing, make sure valuables and other confidential items are put away so the potential buyers are free to walk around. Try and keep the number of people in the house to a minimum. Give them some time and space to look around on their own, but be available for questions. Gather receipts for heating costs, taxes, past repairs, or renovations; buyers interested in the house will want to know these details.
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.
A closing statement should be prepared to show an accounting of the debits and credits to each the buyer and to the seller as part of the land contract transaction. An attorney or a title agency can prepare a closing statement for the parties. The closing statement may also contain an amortization schedule showing the projected payments to be made from buyer to seller to fulfill the financial obligation of the land contract.
If you have chosen to sell your land privately, then you need to know that there are several ways that you can advertise your property. The absolute easiest way is to put out a ‘For Sale By Owner’ sign. This might give you better results than you expect. Many people searching for land simply get in their cars and drive around looking for a for sale sign. Make sure that you have some contact information on your sign.
Personally, I’ve had good experience with Google Adwords where you can set your ad budget to as little as one dollar per day. (You may be able to set it even lower, but let’s get serious, you DO want to sell this place don’t you? Adwords also coordinates with Google Analytics, which will tell you far more than you need to know about the traffic you’re getting to your pages. Also provided are ways to see how effective the ads you write are proving to be. LandWatch.com is another favorite source of mine which consistently supplies better-quality leads, that is, more serious clients, than Google and others.
Additionally, the land contract should indicate how many payments will be made, their due dates, grace periods (if applicable), fees for late payments, and how the buyer should deliver each payment. Under a land contract, buyers are usually treated just like a property owner, and will be responsible for paying property taxes, insurance, and any utility bills associated with the land use.
You may also want a lawyer to produce and review contract documents; some states actually require you to hire one. Although you can find much of the paperwork online, Schorr says, “you need to tailor it to your deal — and the way you fill it out is just as important as what the boilerplate language says.” You’ll probably pay $1,000 to $3,000, depending on the cost of living in your area, but you’ll get an experienced pro who’s in your corner and can make sure the deal gets done right.
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 Brandy, thanks for reaching out! Most of the deals I close in-house are vacant land, so there isn’t much work involved with contractors or improvements. If I were you, I would probably bring this kind of deal to a title company or closing attorney, simply because they’ll be able to handle the moving pieces a lot better than you can on your own (and the cost should be reasonably low – low enough to justify the value they’ll be bringing to the table).
Back in the day, there was so much available land in the U.S., especially in Kansas and other Midwestern and Western states, that the federal government was giving it away for next to nothing. Thanks to the Homestead Act of 1862, settlers who made their homes on land and stayed there for at least five years could take ownership of up to 160 acres, all for the price of a small filing fee.
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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.
Some people prefer to cut out the middleman when selling property, which means selling land without a Realtor. If you go the for sale by owner, or FSBO, route, you don’t have to pay a commission to an agent. The drawback is that you’re likely to sell for less than you would at auction, and it might take considerably longer for the sale to go through. You also have to manage all the advertising, negotiations and paperwork yourself!
Whether youre selling your land yourself or with the help of a real estate professional, its important to ensure that you have all the necessary documents to complete the transaction. Its highly recommended that you consult with an attorney to ensure that your contract includes all of the necessary information and to ensure that you arent missing any important documentation. If you plan on selling the land yourself, be sure to do your research to avoid complications during the sale process.
While approximate land value calculators and charts are available online for most areas of the United States, sellers should use these figures only for broad estimation purposes. Arriving at a more exact price point to use as a listing price is best done by a real estate professional with a solid track record of successfully selling the type of land being sold.