Selling land by owner is becoming increasingly popular – and it’s not hard to see why: There are many benefits to going the For Sale by Owner (FSBO) route.
First and foremost, you’ll save on real estate commissions, which can range from 5-7% of the sale price, according to Bankrate. These charges can add up to a significant amount, particularly if you sell a higher-priced property. In addition, you’ll have complete control over the sale process from start to finish. In other words, you’ll be able to set your price, market the property as you see fit, and show it to prospective buyers on your schedule.
If you want to sell your land by owner, you’re in luck! This comprehensive guide on how to sell land by owner will give you all the crucial information you need to get started.
Preparing Your Land for Sale
Preparing your land for sale is a crucial initial step when selling land. This means ensuring that existing structures are in good condition, the land is clear of debris, and all required zoning and permits are in place.
Determining a Fair Market Value
The best way to come up with a fair market value for your land is by comparing similar properties recently sold in your area. This will give you a good idea of what your land is worth and how much you should list it for. You can also consult an appraiser to get a more accurate estimate.
Marketing Your Land
Once you have a price in mind, it’s time to start marketing your land. The best way to market your land is by listing it on popular real estate sites. This will give you the widest reach and ensure that interested buyers can easily find your listing. You can also use traditional marketing methods, such as placing ads in local newspapers or placing a For Sale sign on your land.
Vetting Potential Buyers
When you start receiving interest from potential buyers, you must carefully vet each. In addition to checking their financial standing, you should also ensure they’re serious about buying and that their offer is fair. If everything looks good, you can move on to the negotiation process.
Negotiating the Sale
When negotiating the sale, it’s important to be tough but fair. You want to ensure you’re getting the best possible price for your property, but you also don’t want to scare away potential buyers with an unreasonable asking price. The best way to approach land negotiations is to start high and be willing to come down a bit. If the buyer isn’t willing to meet your price, be prepared to walk away from the deal.
Drawing up a Sales Contract
The final step is to draw up a sales contract if you can reach an agreement. This document will outline all the terms of the sale, including the purchase price, closing date, and any contingencies that need to be met. Once both parties have signed the contract, you’ll be able to move forward with the sale and officially hand over the land to the buyer.
If you aim to understand how to sell land by owner, the process explained above will interest you. Selling land by owner doesn’t have to be a daunting task. By preparing and marketing your property, you can streamline the sale process and find the right buyer in no time!
Alex Grogoyan is a Professional Home Improvement and Lifestyle Writer. He has been in the industry for over 6 years and has been writing for Chique Home Living since 2019. His work has been featured in popular platforms such as Spruce Home, Better Homes & Garden, and more.