Many reasons motivate people to sell land – their plans changed, they moved away and don’t have a practical use for it anymore, or they inherited the property and want to cash out quickly. Whatever the reason, selling land requires careful consideration and planning to ensure an optimal sales outcome. The right professional partner can help. Having the right documentation in place also plays an important role, as well as clear and transparent communication with all parties involved.
Whether you are looking to buy or pros and cons of selling to a Colorado land company, the process can be lengthy and frustrating if not properly managed. With a specialized land buying company, this does not have to be the case. Bringing a wealth of experience to the table from 100+ land deals in Colorado alone, these companies understand both site-specific and macro purchase dynamics. This enables them to match sellers with buyers that can maximize their sale price.
Aside from the specialized knowledge of local market trends, land companies provide significant time and cost savings for their sellers by handling most, or even all, of the necessary paperwork and closing costs. This includes surveys, title searches, appraisals and transfer tax charges that are typically required with individual buyer purchases. This reduces the overall sale time, allowing you to receive your payout faster and with less hassle.
In addition, a land company can often pay more for your land than a individual buyer as they are able to evaluate the market and value based on local factors such as environmental concerns, zoning policies, infrastructure access and development opportunities that may impact future land values. The streamlined transaction process and all-cash offers also save on fees.
If you decide to list your land with a real estate agent, be sure to get a comprehensive Comparative Market Analysis CMA from a licensed real estate agent or broker. This will give you an idea of what other comparable properties are selling for in your area. This will help you set your asking price accordingly.
When you’re ready to sell, ensure that your mortgage payoff statement is up to date and that all outstanding liens or encumbrances have been released from the property. Similarly, make sure that your property tax records are up to date and correct.
While there are a number of pros to listing your land with an agent, it’s important to weigh the benefits against the potential risks. For example, it can take a lot of time and energy to prepare the site for inspection, advertise the property, respond to inquiries and negotiate with multiple interested buyers. In some cases, this can lead to lengthy and sometimes unsuccessful negotiations with potential buyers who ultimately drop out of the deal.
Another thing to keep in mind is that land values appreciate much more slowly than residential home prices, making it more difficult to see the ROI you would with a home or commercial property investment. Having a solid understanding of the market and your investing goals will help you navigate these challenges.