Is it Time to sell your land?
When your land property no longer holds the same luster it once did, it might be time to move on to bigger and better things. Or, in some cases, down-sizing to meet new financial and personal circumstances. Regardless of the circumstances, when it comes time to sell your land, there are some decisions to be made as far as marketing and selling it. Namely whether to sell your land by owner or work with a realtor.
In almost every neighborhood, advertising signs from reputable companies promote beautiful homes and sought-after real estate in every price range. While not as numerous or flashy as these real estate listings, it’s not that uncommon to see hand-written for sale signs or FSBO in block letters. Of course, FSBO is an acronym for “for sale by owner,” which means the property owner will represent themselves in the closing.
Let’s look at the differences between selling land privately and working with an agent or broker to sell your land, so you can choose which one works best for your real estate needs.
Selling Land with a Realtor
The first thing that comes to mind for many land sellers is whether or not to work with a realtor is how much of a commission they will have to pay. This percentage varies with each transaction and is often negotiable, but a standard average is six percent of the sales price. This dollar amount can be substantial in high-dollar real estate transactions, but brokers bring a wealth of knowledge to the closing table.
Let’s look at some of the ways a land broker can help you sell your property:
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Real estate is a full-time job
– For many brokers, selling real estate is all they do. They have dozens of transactions in a year and often have access to the best homes or well-qualified buyers looking for a new property.
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Realtors know local land prices
– Are prices going up? Is the bottom falling out? Are they building a new road or a shopping complex nearby? If anyone knows about the changes in a community, it will be your neighborhood broker. They know where the best schools are and usually the best restaurants too.
- Access to national databases – Brokers can save owners time and money by providing them with well-qualified buyers looking for properties just like theirs. This is especially helpful for some sellers who have limited time available to show properties and spend time with potential buyers.
- Brokers avoid emotional sales – Pairing with a broker helps some sellers break away from their emotions when selling an inherited property or other property. Feelings can lead to selling at a much lower price or not selling at an acceptable price.
Brokers aren’t perfect for every real estate deal, and if you decide to sell your land by owner route, it could save you thousands in commissions.
Selling Land by Owner
Here are some things to consider when deciding to sell your land by owner:
- No commission fees — This is undoubtedly the main reason why many owners decide not to work with a broker when selling their land. On a simple land sale of $100,000, a six percent commission is $6,000.
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You have a buyer – If you already have an interested party in your land, then there is simply no reason to hire a broker to do the paperwork. Some lawyers specialize in real estate transactions and, for a small fee, will prepare the paperwork and file the new deed at the county office.
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You’re not in a hurry
– If you’re not in a hurry to sell your land, then selling it on your own isn’t a bad idea. There are many places online to list your land, such as Craigslist, Facebook, and even your local newspaper. Or just putting up a “for sale” sign with your telephone number is a great way to catch the interest of prospective buyers.
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You know the selling points
– Emotion can cause you to hesitate about selling your property, but it can also be used to help you present your listing in its best light. No one knows your property better than you do, and you can certainly use that knowledge to your benefit.
