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Selling Land for a Profit
Takeaways
- Market timing and location will determine the resale value of your property.
- Keep up with the long-term plans of the area around your land.
- Once the land is on the market keep it maintained and make sure the boundaries are well marked for prospective buyers.
Did you know?
- Financing the transaction yourself can help seal the deal.
Market timing and land location play leading roles in the resale value of property. Even though the market is subject to demand, availability, and current economic climate, and you cannot relocate the land, you can take steps to protect and enhance the value of your investment.
- Stay tuned to long-range plans in the area where your land is located. When discussions about building moratoriums or re-zoning begin, it may be time to sell. Likewise, when talk of development and expansion surfaces in the area it also is probably a good time to sell.
- Especially if you are not nearby, a relationship with a broker/real estate agent who knows both the local market and your priorities can increase your odds for avoiding negative impacts and reaping the rewards of positive market changes.
- Make it easy for potential buyers: remove debris and spruce up your land by mowing and pruning. Mark boundaries so buyers can easily get an accurate picture of the property.
- Provide documentation. An original or updated survey, copies of covenants or other restrictions, and title insurance are helpful.
- Consider financing the transaction. Banks are sometimes hesitant to finance vacant property, especially raw land with no infrastructure. If you don't need immediate cash out of the deal, a reasonable down payment and monthly payments just below market interest levels can increase saleability and provide a stream of income.
- Protect yourself and gain maximum sales exposure by working with a real estate professional that specializes in lot and land investments and is a member of the Multiple Listing Service (MLS). (link to MLS advice) Through MLS you gain access to dozens or even hundreds of agents and their prospects. Additionally, your agent should also have a well-designed real estate web site. This makes your property available to a vastly larger number of prospects.
Learn More About Investing in Lots and Land
To learn more, explore the advice on Lots and Land Investment in this section of our site. To search for lots and land in your area, please visit a local GMAC Real Estate office's web site to search for available properties, and to find a Real Estate agent that can discuss opportunities for investment.
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