When you need quick cash, selling raw and vacant land is an excellent option. Many people purchase land when finances are good, but later find that they are never able to achieve their goals of building on the land or developing it as they had planned. Other people are left raw or vacant land as part of an inheritance and in many cases the funds to pay the taxes and continue maintenance are not there. Today many individuals with raw land and no prospects are looking to sell their land for cash and the question often arises if working with investors is the best option for selling land.
There are definite differences between selling land to a private party on the conventional real estate market and selling land to investors for fast cash. When you market a property on the MLS or through a realtor, you must pay a commission to the agents involved in the transaction. In addition, you must be prepared to show and advertise the land at all times, regardless of your personal availability. Maintaining the property can become especially cumbersome if the property is on the market for a long time too. Additionally, selling through conventional real estate marketing can take months to years to make a sale. This is counteractive to the fast cash transaction many land sellers are looking for.
People interested in selling to investors are usually those who need fast cash for their land and can’t afford the commissions and time that selling land on the real estate market can take. When you need fast cash for land, investors are the way to go, but you must understand that investors can pay cash because they are not going to offer top dollar for your land for sale. Most investors purchase at 60% or less of market value for a property and raw land.
Many people wonder why investors buy at such lower rates and the reasons are completely understandable. For starters, in order for investors to be able to deal in cash, the numbers have to stay within a certain range so that paying cash for land remains practical. In addition, investors have to pay for taxes and maintenance on the property, not to mention that they often have to pay off liens on properties. Investors are often approached about distressed properties because the owners need money fast and don’t have time to wait for a conventional sale.
Selling land to investors is a great way to get money fast, but be prepared to negotiate on the price and know your bottom line before you make contact. You can’t go to investors expecting to get top dollar, but you can expect to get a fair cash offer on your raw land or vacant land.