Friday, October 7, 2011

Pricing Your Vacant Land for Sale

Much like finding a price for residential and commercial property, pricing vacant land requires the same research and comparison efforts while taking into consideration additional variables. Variables like the size, location, and type of parcel you are attempting to sell. And whether or not your parcel used to be a landfill or neighbors a busy plastics factory is important information to note, as well; for, this, based on a buyer’s development plans, might affect the amount of money that he is willing to pay for the land—whether positively or negatively. Here are few tips to help you along the way as you seek to competitively price your land for sale.

How to Start

To begin, look for comparable parcels of land with the same zoning on the Multiple Listing System (MLS), and on local real estate websites. Of those that have basic similarities with yours, pinpoint those that are relatively the same size and have the same positive or negative attributes. Those attributes would include water and sewerage connection or the lack of, electrical connection or the lack of, and mature or immature landscaping, for example. Then, make a list of the prices that those lands are selling for along with clear notes that briefly describe each property.

Be attentive when making your comparisons. Be sure to take notice if, of two listed land parcels, the parcel that is higher priced is closer to city attractions, is close to a lake, or is in a specific city. This will give you an idea of what is more attractive to buyers and will help you to make a more informed estimate on what your property should be priced at.

Limit your search to listed land that has only been on the market six months or less. Because the real estate market is so closely connected with the economy, and because the trend of what is popular among buyers can change quickly, it’s best to focus on the most recent listings. You can even go a step further and check property records in your county for the final pricing of recently completed sales.

With all of the information that you collect, you should be able to determine what would be a reasonable and competitive price to market your land for. Even if you calculate an old fashioned average (by adding the pricings of five lots of land together, for example, and then dividing the total combined pricings by the simple number five), you can come up with a figure that satisfies you and potential buyers.

Another Option

If, for some reason, the task of researching comparables becomes too much for you, there is another option. Selling your land is still a possibility if you connect with a private land investor who will make you a cash offer. Some land investors, like Lucas Properties, LLC, are experienced in making cash offers while securing quick closing dates—which can save you time, effort, and energy. Additional benefits of this option include buyer paid closing costs and the dissolving of back property taxes and liens on your behalf.

So, as you begin this journey of selling your land, know that you are not alone. If you have any questions, the experts at Lucas Properties, LLC can answer your questions.

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