Six Reasons to Sell Undeveloped Land As-Is

Selling Your Undeveloped Land

There are many ways to improve a piece of property; however, the real question is will they improve your ability to sell your land? If you have undeveloped land you’re thinking about selling you may want to think twice before spending time and money on improvements. There are many compelling reasons why selling your undeveloped land “as-is” may be the best option when marketing land.

If you’re looking to sell your land, here are 6 why it might be better to sell it “as-is”

1) It’s More Cost Effective to Sell Land “As-Is”

One might think that enhancing their land with buildings and other improvements would make the undeveloped land worth more on the market. In some cases, that’s true. On the other hand, there are times when improvements can turn into an unnecessary financial burden on the seller without adding much when it comes to marketability.

Particularly when it comes to selling vacant land or lots, your target clients may have different expectations than mainstream home buyers looking for an upscale property and may want to do most of the development or improvements on their own.

Depending on what your buyer intends to do with the property — which may include immediately selling it to someone else — investing too much effort in a piece of land just isn’t cost-effective.

Since land sales may transpire between a landowner and a buyer who will be moving onto the property permanently, there are times when it’s best to let other people do the improvement work, as they may have their own ideas of how they’d like to improve the undeveloped land.

 

2) You Can Sell Your Land “As-Is”

Do you know what a random stranger wants to put on your property in the future? Of course, you don’t. If you were to put a permanent structure on that land, there’s a chance it’ll be torn down or moved later. That’s money, time, and effort you could’ve spent elsewhere.

The chances are good that somebody out there will buy your land exactly as it is.

“But I’ve got to improve the land!” you may be thinking……No, you don’t.

Fact: People have purchased, and will continue to buy, land on floodplains, in blighted urban areas, or out in the middle of nowhere.

You don’t necessarily have to do anything to sell your land. It’ll sell because it’s land, and people want to buy land, vacant land, unimproved land, just as it is now.

 

3) You Can Discount the Price Vs. Spend Money out of Pocket

It’s easy to underestimate the costs to improve vacant land……discount before you come out of pocket to improve your land.

It’s much easier and affordable to discount a property than it is to come out of pocket to do repairs or maintenance to land property. Many buyers would rather get a discount on the property and do the work themselves that to buy a property at full market value with all the work done it. Property improvements can end up costing much more than expected and can take time to get done.

Discounting a property allows you to avoid finding someone to do the work and best of all you won’t have to spend money you have saved to get the deal done.

 

4) Your Knowledge of the Property is Limited

Do you know the legal history of your land going a century or more back? You probably don’t.

Even if you were to learn the complete history of the land’s settlers, you’re still unlikely to grasp the legal technicalities that arise each time the land changes hands.

When you advertise your land as being sold “as-is” it says to the buyer that you aren’t making any claims about the title or condition of the property.

Don’t risk making a false claim about a property. Sure, you may be honest at heart, but you likely don’t know what has happened on that property, especially when it comes to the finer points of real estate law.

Do you know for sure where the property boundaries are? If you don’t, then don’t claim to, and definitely, don’t make any permanent improvements to the land. You could end up putting that lovely new chain link fence on a neighbor’s property.

Unless you’re prepared to engage in intensive legal research, you may be better off selling the land as-is, faults and all. People buy “distressed” land all the time.

 

5) Let Your Buyer Do the Work for You

Does your potential land buyer want to erect a small structure on the land, or have it professionally surveyed?…..Don’t know? ….Then let them do it themselves.

Small improvements, such as mowing or brush hogging the land are one thing, but bending over backwards to make improvements on land can just lead to a wasted effort on your part, and end up costing you both time and money.

Buyers can see pictures. They can read descriptions. If they want a detailed history of the property, then they can do the research themselves. If you’re thinking of wrecking old structures or building new structures, you might want to think twice. Don’t drop a metal barn on a property where the buyer wanted a fruit stand, instead.

Don’t waste time and money. If a costly improvement doesn’t have to be made in order to sell the land, then skip it.

 

6) Have Your Land Buyer Conduct Their Own Due Diligence

Selling an undeveloped land property “as-is” places the burden of responsibility on the land buyer to conduct their own due diligence.  While it’s true that a seller needs to be upfront and honest when you sell your land “as-is” it lets the buyer know you are making no claims as to the condition or specifics about the property.

When potential buyers examine a piece of property, they’re being called upon to use basic common sense to research the land. Even if you think your land contains some unsightly features, none of those features will come as a surprise to a buyer who has done due diligence.

Some buyers seek out odd pieces of land, off-grid property, or parcels situated in less than appealing neighborhoods. It’s hard to say why some buyers are drawn to a specific plot of land. They may have grown up in that area, or have a particular purpose for it. Maybe they think they can flip it. What they think isn’t your problem. Due diligence isn’t your problem, either. Leave it to the buyer.

You can sell your undeveloped land as-is, especially when you’re working with land professionals who will help you sell your property quickly.