Did you know there are alternatives to selling your land through a realtor? If you don’t want the hassle of a real estate agent, you can sell land privately.
Selling land privately by pocket listings has increased by 67% in the last year. The process is legal if you follow the correct process. If it’s your first time selling, you might wonder where to start.
You need to learn the setbacks and restrictions that might hold your sale.
Keep reading to learn the essentials on how to sell land by owner…
Why Sell Land Privately?
Selling land privately does not involve a real estate agent.
There are some advantages to this by avoiding real estate commission. However, it involves more steps than the usual sale. This can make it a bit more difficult.
Research suggests 50% of landowners who try to sell privately end up looking for realtors. If you find the process challenging, you can always seek professional help.
At Selland.com, we buy land and facilitate quick and easy sales. We are committed to offering the highest and best offer for your land.
People sell their land privately to control the sale and negotiation process.
If you need the cash fast, selling privately is more convenient. It avoids bank or government agencies’ wait time to approve and process a loan application.
The process is faster as there’s no need to wait for a buyer or seller to find each other on the market. The seller can also ask for whatever price he wants and choose the buyer.
There are private buyers and sellers of land in every state in the United States. You have a choice of who to sell to. The federal government is not involved in the sale of private land.
Sellland.com has drafted a blueprint to guide you on how to sell land privately.
What to Do When Selling Land Privately
Selling land privately is becoming a popular option for sellers. For many landowners, it’s the only option. They don’t have the time or money to go through a lengthy public auction process.
If you wonder how to sell land by owner works, here are a few pointers.
Get all Necessary Documentation for the Land
Each buyer will need proof of ownership and legal confirmation of the sale. Prepare all documentation to avoid delays in sales. Lack of documents can also dismiss potential clients.
Which documents do you need to sell your land?
- The agreement to sell
- E-certification for transfer of ownership (TCT)
- Declaration of the real owner and copy of his ID card or passport
- Copy of title deed (Torren’s title only)
- Deed of Assignment (for existing leasehold property only)
- Certificate of no lien on the property (issued by the Register of Deeds)
- Letter from the bank confirming that there are no liens on the property
- Affidavit of eligibility from the previous owner, or a copy of the Deed and Affidavit of Eligibility for Non-Resident Purchasers (Deed Book and Page Number)
If you are not familiar with some of the documents, consult your lawyer for help. Alternatively, collaborate with a reliable real agent expert.
Prepare the Land for Sale
To get the most money for your land, you need it to look as appealing as possible. That’s where staging comes into play. Staging a piece of land is like giving your property a makeover, except that it’s temporary.
You can prepare your land by landscaping. Landscaping gets your land sold faster and for a higher price.
Landscaping doesn’t have to go full-blown if you don’t have the resources. Preparation like just clearing bushes and litter can be enough.
Other preparations include electricity and water installation. If possible, make sure your land has functional utilities like wells, septic tanks, and fences.
Make the boundaries of your land clear. It helps the buyer to have a clear picture of the size of the land.
Document preparation is part of land preparation. Apply for all necessary permits.
Land Appraisal
Before selling, you might be curious, how much is my land worth? A land appraisal will answer the question.
A land appraisal is a process of determining the value of real estate. It can be done by a licensed appraiser or an agent, a county assessor, or a certified appraiser.
In the United States, most states require that property be appraised for tax purposes. The appraiser estimates the market value of the land. It is then compared to the tax value set by the local government.
The land value is calculated by analyzing its proximity to nearby places, like schools, shopping centers and parks.
The size of your land also determines its value. You can use a surveyor for this purpose.
The annual income generated by that piece of land is also considered. Property taxes are often used to determine the value of a piece of land.
The income approach land valuation approach is commonly used. This method estimates the annual income generated by a piece of land and then divides its capitalization rate.
Determine Your Target Market
What type of buyer are you looking for? Do you want an individual or a company to purchase the land?
Private land in the United States of America is a new trend and it is growing fast. In Florida, 60% of property buyers choose private land.
If you are selling your land in the United States, there are many things to consider. You need to know which demographic to target. According to the US Census Bureau, there are three main types of people who buy land:
- Baby Boomers
These are people born between 1946 and 1964. They are currently between 54 and 72 years old. This is the age group most interested in buying land for retirement purposes.
- Generation X
These are also known as Gen Xers or the “MTV generation.” This is the age group most interested in buying land for investment purposes.
- Millennials
These are also known as Gen Yers. Millennials are the largest demographic in the US. They’re looking to settle down.
It’s no wonder why many are turning to real estate to make money. The demographic you target depends on your market. Choose a target market that will allow you to sell land fast if you are in urgency.
An ideal target is wealthy people with children. People who have already bought their dream home. People who are looking for a new project that will give them a sense of accomplishment.
Market to Your Target Audience
You will need real estate marketing to sell your land. Marketing creates awareness of the land sale. Proper marketing strategies will attract potential clients within a short time.
So, what type of strategy are you utilizing to attract more buyers?
- Private Mailings
Private mailers are a great way to stay in touch with your past and current clients. The mailers can include anything from reminders about upcoming events to new listings and promotions. They’re an excellent way to build relationships with clients and potential clients.
You can also use them for direct mail advertising. It is becoming increasingly popular for realtors who want to gain new business.
- Social Media Marketing
Social media marketing creates awareness and networks with potential clients. You can use Facebook, Twitter, LinkedIn, Google+, Pinterest and Instagram.
- Blogging
You can blog about the latest real estate trends or homes for sale in your area. The goal is to create leads from potential buyers.
Choose a marketing strategy that matches your target market. You can collaborate with a real estate agent to facilitate marketing. There are thousands of online platforms to list your land.
Choose a reputable and competent platform to attract the right buyers.
One simple marketing strategy you shouldn’t ignore is putting up a sales sign. If you are using pocket listings, remember to post pictures of the land and any fixtures in it.
Closing the Deal
Closing on a piece of real estate can be even more stressful than buying or selling it. The legal process involved is unique and with many details.
You need to understand how the legal process works. It helps you avoid getting into scam deals.
Understand the transfer of ownership process.
Review what your sales include in the sale contract. Are there any buildings, fixtures, tenant improvements, and personal property attached?
If you are not familiar with the process, involve a lawyer or real estate agent.
Sell Your Land Privately Today
When selling land privately, it’s best to think like a buyer. Position yourself as a buyer and think of what you might need or potential concerns.
If you don’t have the answers to some of the concerns, research. Make all documentation ready and address concerns that might delay the sale.
Applying the above tips will also help you make a sale.
If you are still stranded on how to sell land fast, you can collaborate with a real estate agent. Selland.com turns burdensome land into cash. Contact us today if you want to sell your land privately.