The definition of raw land is land that has never had a structure built on it. It has no utilities on it. It has just sat there since the Earth was created and has done nothing. Do you own a piece of raw land and have no idea what to do with it?
You could grow food or raise animals on that piece of farming property you inherited. If you are a city born and raised person, you probably don’t have the interest, knowledge or desire to manage a farm. Or if the piece of land you own sits in the city, you could build a shopping strip or a commercial building and lease it out, but maybe your career and current job keep you busy.
So what can you do with this piece of property? You’ve been paying taxes and keeping maintenance up on the property for years. Yes it may be raw with nothing on it and not of any use to you, but you know it has value. So why not sell it? Maybe you have bills stacked up. Or maybe you received a stock tip that you really want to get in on the action, but you don’t have extra money lying around.
First thing you should do is get that land surveyed. You should make sure you know the boundaries of the property and that they are clearly marked on the land itself as well. After getting a survey completed, find out what the zoning conditions are with the local government office. Whether the property is zoned residential or commercial will make all the difference in how much it is worth and who will be interested in buying it.
If you don’t know already find out where the utilities are in relation to your property. How close are they and what will be required to get them run to the land. Are there requirements of licenses or permits? If so, what are the costs of those things? The more you can know about the property for potential buyers, the easier time you will have selling it.
With this little bit of homework, you are now ready to sell that land! How much do you ask for it though? Well you can go through the process of getting an appraiser to give you a formal appraisal. Then you can work at selling it yourself by advertising in the local papers, on-line and sticking a sign on the property. Then you will have to deal with the phone calls and tours, not to mention the negotiation part. Wow, this piece of land is starting to not only cost you money but now your valuable time too!
Then there is always the process of signing on with a real estate agent. You’ll want to research that choice well because not all realtors are knowledgeable about land and how to sell it. The truly interested agent will want to get the most they can so that their commission is larger. However, this means you lose some of the profit when it’s sold after paying their commission and any fees.
Or you can consider selling this property to a real estate investor. There are investors out there with cash looking for different types of properties. Some are working with developers of shopping centers and commercial properties. There are some that are looking for land out in rural areas too. Then there are also real estate investors that want to buy any and all raw land they can find, they have a diversified portfolio. With real estate investors, there are no commissions, no fees and usually a quick closing.
So if you have a piece of farm land or a city lot that is just sitting there and costing you nothing but money month after month, year after year, maybe it’s time to consider selling it. Then you will have that extra money to invest in that hot stock tip!