I spent a lot of time calling real estate agents and comparing prices online. Eventually, I got a quote from Sell Land and it was more than I’d seen elsewhere! I could have saved myself hours of work!
Tim – Sold 3.9 acres in Kansas
If you’re thinking about selling land, you’re almost certainly interested in finding out what it’s worth. The question is, should you trust the valuations land buyers give you?
Trust is an important part of our business – so we always make sure we deal with potential customers fairly. However, we don’t expect you to take our word for it! As such, we’ve put together a detailed guide that will help you research the valuing land process yourself. This means you can check to make sure any prices you get are accurate.
When you’ve finished reading, you’ll be in a better position to judge the current market value of any unimproved land you’re thinking of selling.
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Look at Comparable Properties In Your Area
You can estimate land value by comparing to other similar land listings. Check to make sure your land and the land you’re comparing to has a similar acreage, utlities and road access, has similar features to the other land parcel, and is in very close proximity.
If you want to determine land values, it can be extremely useful to look at similar property values nearby. This is referred to as the ‘sales comparison approach’ in the real estate industry. This can often be done online, but don’t rule out visiting similar plots and talking to local landowners.
It’s good to start by checking for similar land parcels on the most well-known websites.
Zillow
Zillow is a great resource for exploring property prices. If you’ve used the site before, you’ll know you can narrow your search using a range of filters.
Remember not to just look at current listings. Dig a little deeper and you’ll be able to find recent sales and historical valuations too.
Landwatch
Landwatch takes a slightly different approach to Zillow, as it specializes in more rural properties.
Again, you’ll have to filter out things like ranches and farms – but if your land is in a more rural setting, this is likely to be a good site to explore.
What To Look For On Property Listing Websites
Unfortunately, determining land values isn’t quite as simple as finding similar properties and matching the price. After all, the person who wants to sell the undeveloped land will have decided the price themselves.
As such, you should also look at how long the listings have been live. If you see an impressive price but also see that the land has been for sale for months (or sometimes even years) without selling, that could be a clue that the asking price is too high.
Also, remember that two similar-looking pieces of land could be significantly different based on work that’s been done under the surface, permits that have been granted – and other factors you may not notice at first glance.
What Influences Vacant Land Prices?
If you decide to compare prices with similar land properties you find online, it’s worth understanding some of the additional factors that influence land sales prices. This will help you make a more precise comparison and arrive at the most accurate price.
Don’t worry if you’re not sure about the exact details of your own raw land. You can find a lot of useful information if you have the most recent tax bill, which you can acquire from the County assessor’s office, and the legal description – which can be found at the County Recorder of Deeds or on the deed when you purchased.
Acerage
Perhaps the most obvious factor is the size of the land you’re selling and how that compares to other local properties.
Remember that the size of your property might make it appealing to different audiences too. Larger vacant land plots could be appealing for home-builders – but may also appeal to commercial development companies. Be sure to check all areas of the market.
Utilities
Although it’s not always apparent at first glance, some plots of land will have had work done under the surface. Typically, this could include the infrastructure needed to access electricity and water.
Some buyers will consider this an advantage, especially if it means they don’t have to spend their own time and money connecting to the services. Therefore, sellers will often increase the price of their land to reflect this. Make sure you’re comparing like-for-like.
Road Access
Access is an important factor to consider when you compare properties. A piece of vacant land that has a road frontage and a driveway in place is likely to be listed for more than land that doesn’t.
Surrounding Area
Your property’s location will influence the price significantly. This makes it very important to compare to land properties that are very close to yours.
If you extend your search too far, you could find that you’re comparing to land plots that fall within very different neighborhoods, school areas, and Home Owner Associations. You may also find that you’re comparing to land with different zoning restrictions, which can also make a big difference to vacant land appraisals.
Topography
The features of your land and the useable space within it could be very different to seemingly similar plots.
An extreme example would be back-to-back plots of the same acreage – but only one has a sea view. In cases like this, it can be useful to actually visit the plots you’re comparing to, so you can be sure they both have the same appeal. Of course, it’s not just positives you’re looking for; check for flood zone warnings too – as buyers needing flood insurance is likely to reduce your price.
Talk To Local Real Estate Agents
Contact a local real estate agent and ask them if they could provide a market value appraisal report for your vacant land. Be aware that this service may cost you – or you will be expected to sign a contract so the realtor can market your land on your behalf and earn a commission.
If you don’t like the idea of taking the ‘sales comp approach’ – or you’d like a second opinion – you might decide to talk to a local experienced real estate agent.
Most real estate agents have a real estate appraiser as part of their team. It’s this person’s job to look at all the factors we’ve talked about above and factor that into a market value.
A professional appraiser will likely be able to consider other details that you may not be able to access. For instance, they’ll have a good idea of what’s currently selling well, what’s attracting interested buyers, and additional local area features you may not be aware of.
How much does an appraisal cost?
Of course, the downside of this approach is the cost. Formally appraising land generally costs between $1,000 and $4,000 depending on the size, location, and zoning of the vacant land plot.
The alternative is to list your vacant land with a realtor. When you do, they’ll make a market value recommendation. Be warned though, realtors don’t work for free – so you’re likely to have to commit to a 6-12 month contract before they get to work. You should also be aware that they can sometimes suggest an inflated price to draw you in, only to recommend reducing it later when it’s attracted zero interest.
Don’t forget additional costs
Don’t forget to factor contingency costs into any math you do if you’re considering using a realtor. They’ll usually be up-front about these, but they can include a commission in the 6-10% range, surveys, percolation tests, appraisals, title search company costs, title insurance, title company/attorney costs, and some other fees.
Experience matters
Before you commit to a contract with a real estate agent, you should do a little homework about the company you’re considering using. Virtually all real estate agents are highly-skilled at selling homes, but it can be harder to find one with experience selling vacant lots. A little research in this area will help to manage your expectations around how quickly your land might sell. It’s a good idea to avoid being tied into a contract with an inexperienced realtor – as your land could sit for months (or even years) without interest.
Land Value Estimator: Frequently Asked Questions
Do you offer an earnest cash deposit?
Yes, we do. Since we develop all the land we buy, we’re not relying on quickly selling your land on. This means when we make an offer, we’re confident we want to purchase your land. We’ll organize an earnest cash deposit so you know we’re serious and you can be confident your land sale will close soon.
Do you cover all closing costs?
Yes. We pay for all closing costs so you don’t have to worry about them. In fact, we’ll even cover any unforeseen costs that come up when it’s time to close – so there’s no danger of any unexpected costs for you.
How quickly will you close my deal?
Typically, we’ll aim for a closing date in around 2 weeks. The nature of land sales means this isn’t always possible – but we’ll keep you always keep you informed and give you honest timescales.
Don’t worry if 2 weeks doesn’t work for you – we know people have busy schedules! If you’d like to aim for a different date, just let us know and we’ll work around your diary.
How soon can I expect my cash offer?
We’ll do our very best to get back to you later the same day or the next working day. Don’t worry if this doesn’t work for you though – just let us know when it’s convenient and we’ll be in touch!
I’d prefer to speak to you on the phone, is that ok?
Of course. We understand that it’s often more convenient or reassuring to talk to a real person on the telephone. We’ll answer as quickly as possible during office hours and always call back as soon as possible if we miss your call.
How Do We Value The Land At Sell Land?
By now, you can probably tell that there’s a huge number of things that affect the market value of a property. We research all of these factors and then come to a price that we believe is fair to both you and us.
Our offers are based on “after-improvement market value.” Put simply, this means working out what the highest and best use of the property is and how much it will cost us to get it there. From there, we subtract the costs involved with getting it there, factoring in the profit we make to run our business, then that’s your offer!
Don’t worry about any issues with your land that you think might put buyers off. We frequently deal with back taxes, liens, probate, easement issues, lack of utilities, dilapidated structures, flood zone issues, and lots more.
What Comes After The Valuation?
When we’ve made you an offer, it’s over to you. We’ll never put you under any pressure to make a decision, so you’re absolutely free to talk to anyone else involved and look at other valuations.
If you’re happy with our offer, we’ll send you a deposit so you know we’re serious. We’ll then look at everything required to close the transaction quickly and get you your cash fast! If the offer’s not right for you, we’ll use our real estate experience to suggest some alternative ideas that might be useful.
To make sure your transaction is safe and secure, we’ll always close the sale with an attorney or a licensed and insured title company. Don’t worry though – we’ll handle all the details and associated costs.
Then, that’s it! Your money is in your account, and there are no more worries about maintaining it or paying land taxes!
What Do Our Past Customers Think?
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Would You Like The Sell Land Team To Make A Cash Offer For Your Vacant Land?
If you’d like to get a price from us here at Sell Land, we’d love to hear from you. You can get in touch using our handy form or call us at (314) 639-9800. We just need a couple of contact details. Then, we’ll get in touch to ask a few questions about your land – so we can make sure we maximize the cash offer we make.
Remember, getting a no-obligation cash offer doesn’t stop you from exploring other land value estimator tools or sales routes – so why not get a price and get an idea of how quickly we could close?