The market is cooling in most of the counties where we acquire land. Although individual areas can vary, throughout the nation it looks like 2022 was a high and the market is now experiencing a dip.
Who knows what the future will bring, but if you are interested in selling your land, there are two options: 1) wait for the market to heat up again, or 2) sell now before the market goes down even more.
A Bird in the Hand
If you still want to get a relatively good price for your land and you aren’t using it for anything, I would recommend selling it as soon as possible because it could take years for the land market to heat back up again. In the meantime, you are paying taxes, maintaining the property, and risking the market going down further, which is a real possibility given the unprecedented appreciation it saw in 2020-2022.
BUT, be sure to check out the statistics for your individual area before you do anything so that you can make an educated decision. Check out land that has sold in the last few years and look at the trends. Be sure to find a parcel that is as similar to yours as possible. This can be tricky because there are so many variables. Here are a few to get you started: look for several properties with the same zip code, acreage, topography, utilities, zoning, and features. It’s best to look at as many properties as possible and figure out the average sales prices and trends from 2019 through today. This is easier to do in disclosure states. If you’re in a nondisclosure state, finding comps can be even harder.
Once you have verified approximately how much your land is worth (by comparing it to the comps in the area), decide how you want to sell.
Best Ways to Sell Right Now
1. Sell on Your Own to Retail Buyers
- You keep all the money.
- You can get full market value for your property if you price it right.
- You will need to market the property, which means finding buyers, taking photos, writing a good description, providing buyers with good due diligence, etc.
- You need to figure out the closing process on your own or hire an attorney to walk you through it. This will involve you getting the buyer a purchase agreement, understanding the laws of your county, getting paid, and transferring the deed (pro tip: use a title company).
- In order to get the best price for your property, you basically need to become an expert in selling land.
- It could take you months or years to sell your land.
2. Sell With a Real Estate Agent
- The agent handles the sales process.
- If the agent is good, they will market the property, get photos, and find buyers.
- You pay the agent a commission (typically 10% for land).
- It’s hard to find good real estate agents that only work with land. It’s a niche market and if you select the wrong agent, they won’t help you much and could hold up the process.
- Agents usually only want to work with you if your land is worth quite a bit. You need to determine if your land is worth enough to interest an agent.
- Your land could be on the market for months or years (especially if you are holding out for a higher price).
3. Sell to a Land Investment Company (Like Us)
* Note: I’m going to tell you how our company works below. I’m not sure how other land investment companies work, but I’d recommend ensuring that they do the following.
- The investment company handles everything; we provide you with a contract, handle the closing process, and make sure the transaction goes smoothly.
- We pay all closing costs, including hiring a reputable title company or attorney to ensure the deed is transferred properly and you are paid.
- You get cash quickly.
- No waiting around for months or years for your property to sell.
- The biggest con is the price. We will want a reduced price because of the risk we are taking on.
If you think now is the right time to sell your property, consider the best way to move forward. Spend some time doing research and deciding what is the best option for you. If you are interested in getting an offer from us for your land, click here.
Take care and happy land selling.