Success at selling raw land takes hard work, homework and teamwork. Choosing the right real estate agent to help you accomplish your goal also involves interviews punctuated with questions regarding your specific property, the success a potential agent has had in the past and that agent's experience. Knowing what is required of you prior to listing your land helps when interviewing and selecting the right agent.
Understand completely the potential of your raw land. Speak with local zoning officials, utility companies and your local department of works to determine if a building, roads, utilities and sewer or septic system can be installed. Have a boundary survey performed that outlines the extremities of the land and include easements. Find out about projected highway construction from your local government offices. Include information on land uses adjacent to your raw land. Clear the property of debris.
Meet with an officer of a local bank known for issuing mortgages on land. Don’t go to a national bank as they’re typically not familiar with land sales in your area. Ask for recommendations of local real estate agents they’ve worked with in the past and who have been successful in closing land sales.
Interview at least three land sales agents. Ask them to visit your property before the meeting to familiarize them with the potential listing. Have them prepare comparable sales that back up their suggested listing price and a marketing plan that reaches the most logical buyers, including what Internet sites are recommended for advertising your property. Study the days on market for each of the comparables and query why they either sold quickly or languished on the market.
Select your real estate agent based on logic, not emotion or on the one who promises you the highest price for your land. Compile a portfolio of information on the property, including an engineer’s report and input from a landscape engineer integral to your portfolio. Dismiss an agent from your list of choices if he balks at helping you perform this work.
Discuss the commission agreement with your potential agents and verify the norm for raw land in your area. Know that a land listing agreement is for at least six months since it takes longer to sell raw land than a home. Ask agents if they support a price reduction strategy after segments of time have passed without offers. Listen to the suggestions your agent-candidates give regarding financing, down payment amounts and loan terms if you’re financing the purchase yourself. Speak again with the local bank to verify the agent’s suggestions.
- Timber Home Living.com: Keys to Buying Raw Land
- Bankrate.com: Archives: Real Estate Adviser; Research Raw Land Before You Get a Raw Deal
- U.S. Department of Agriculture. "Farm Loan Programs." Accessed May 11, 2020.
- Consumer Financial Protection Bureau (CFPB). "What Is a Home Equity Loan?" Accessed May 11, 2020.
Jann Seal is published in magazines throughout the country and is noted for her design and decor articles and celebrity *in-home* interviews. An English degree from the University of Maryland and extensive travels and relocations to other countries have added to her decorating insight.