How Do You Sell Land by Owner

Selling land without an agent, a process also called FSBO, can be very fun but tough as well. This guide will assist you in selling your land without hiring any agent. While it saves on commission by getting rid of real estate agents, it comes with more work and precision. From the preparation of the property to sale closure, here is an ideal procedure to follow in order to be successful in the FSBO venture.

As an owner selling land gives you greater authority on the transaction and also allows for a possibility of saving thousands in realtor commissions. Still, it comes with its own set of challenges. For example, when people sell houses, they stage them and use interior designers. But when selling a piece of land, it is more about selling the potential of the property and knowing what land buyers want.

Among the most prominent pros of FSBO are the following:

• Zero commission costs: Sale of a property through a real estate agent incurs a cost estimated at 5-6% of the selling price. For example, selling off land could save thousands of dollars.
• Talk directly to potential buyers: You are in full charge of the negotiations and can customize them as you wish.
• No restrictions on how one can promote: There are options on whether to promote the property and if so, how to go about it.

Nonetheless, marketing a piece of land independently has its own share of hurdles like: 

• Dealing with legal documents: For many, ensuring all documents are properly filled out and filed can be a frustrating experience, especially for those used to the business of buying and selling houses. 
• Marketing issues: It may take slightly longer to locate a buyer without the realtor’s contacts.

Preparation Before Selling

Several steps must be followed in advance before any land is advertised for sale in order to eliminates the difficulties that come with selling land.

Collecting Necessary Paperwork

Correct replacement of the documents is paramount while selling your land. Some of the important documents required include:

• Deed: This is the basic and most valuable document as it contains the evidence of possession of the land. Even when you do not have a hard copy, one can look for one on record usually at the county recorder’s office.
• Title: It is also very important to do an extensive search on the easement and make sure that the title is clean from any lapsed claims on the property. This can be accomplished by a title company who conducts a title search on your behalf.
• Legal description: Usually one can locate the legal description of the real estate in the deed of the property. However, should this data appear out of date or insufficient there will be a need to obtain new information and a land survey may be conducted to get such information.
• Survey or Topographical Map: A survey is likely to be beneficial to future buyers wherein they are inquisitive regarding the location of property boundaries, and any features such as trees, fences or other structures situated within or around the property.

Understanding Zoning and Land Use Regulations

Zoning regulations govern every land area defining what it will be used for. For instance, your land may have a zoning classification of residential or commercial or agricultural or even recreational. These limits must be acknowledged because they will affect the kind of clients who may be interested in purchasing your property. Furthermore, examine other limitations with may be placed on the buyers use of the property especially in relation to Home Owner Associations (HOA).

Determining the Market Value of Your Land

When selling land, it is always important to price it right for potential clients. One of the most straightforward ways to determine the value of one’s land is by looking at other similar ones either recently sold or on the market. This method is known as the sales comparison approach.

If you are uncertain about the price you need to charge, it is still advisable to seek the services of a qualified appraiser. Real property appraisal is both a science and art, thus a qualified appraisals expert will be able to give a reliable price estimate by factoring in the place, size, zoning, and developments done on the parcel of land.

Marketing Your Land

Marketing your land effectively is crucial to finding a buyer. Without a realtor’s network, you'll need to take responsibility for promoting the property yourself.

Traditional Marketing Methods: Signs and Neighbor Letter Campaigns

The simplest method of promoting your plot of land would be to erect a 'For Sale' notice at the boundary. This is mainly applicable in areas where the land is situated in places with heavy footfall or vehicular traffic. In addition to signage, a neighbor letter campaign can be a great way to reach potential buyers. This involves sending letters to nearby property owners who might be interested in purchasing additional land.

Listing Online: Free and Paid Platforms

In order to list and sell lands, you can turn to various channels. Some of them are free while others charge a fee. They enable the users to manage and post ads with a large audience reach. Some of them even draw up to millions of users where there are sub sections of lands and properties for the audience to view. It is however worth understanding that some of these buyers may be bargain hunters, so be ready for some price haggling.

Further, some companies allow only professional real estate agents to advertise properties enhancing the visibility while making it difficult for ordinary members to promote their properties. Alternatively, some sites can also be used for advertising properties to be sold or rented to the people within one’s locality which makes it easier for selling or renting out the property.

Professional Photos and Aerial Drone Imaging

Attention in your land and its visual appeal can be improved if good quality images are attached. It is advisable to consider engaging the services of a skilled photographer or alternatively employ a drone to take clear aerial photography of the land. These images will enable the prospective clients visualize the entire land including its features and the environment surrounding it.

Negotiating the Sale

Having established that a potential buyer is willing to close the deal, the subsequent process involves fleshing out the terms of the capital transaction.

Creating A Land Sale Contract

As that of a sale of land agreement which delineates the terms of the sale, the purchase agreement becomes enforceable once both parties append their signatures on it. In case one has no experience in drafting contracts, it is recommended to get a ready-made draft from the organization or the respective lawyer of the buyer’s state.

The contract should in no way be without the following:

• Cost of property
• Date of possession of the property
• Deposit amount or consideration paid by the buyer
• Legally outlined property boundaries
• Conditions if any, such as approval of finance or carrying out inspections on the property.

General Conditions and Demands on the Buyer

Usually, buyers want to impose conditions in the contract that need to be satisfied before a sale can occur. Such conditions could be obtaining a loan, inspection of the property or even measuring the boundaries of the property. It is wise to address these conditions at the beginning so that all understand the conditions clearly.

Handling Paperwork and Legalities

Selling a piece of land or any real estate property entails some legal documents. Below is a summary of the documents that one will need:

Required Documents: Deed, Disclosures, Settlement Statement

• Deed: The deed offers the land which changes ownership to the buyers after the purchase is complete. The document should bear the signature as well as the stamp of a notary public.
• Disclosures: This is a communication to the buyer of any known problems with the property such as health risks or zoning issues.
• Settlement Statement: This is a breakdown of all the financial transactions involved in the operation including taxation, charges, and the sale price.

Title Transfer and Title Companies

The use of a title firm, however, is optional but it makes the process easier. Incumbent upon the title company would be assignments such as performing a title examination, preparing the closing document, and keeping the money in safekeeping until the deal is consummated.

Tax Prorations and Handling Unpaid Property Taxes

Lastly, Prior to closing, property taxes must be addressed. If there are debts that are still owed, they will more often than not be subtracted from the sales proceeds during closing. The annual assessments are, however, in most instances, prorated between the buyer and seller as the sale date nears.

Closing the Sale

The closing procedure ends the process of disposing of a property. At this juncture, the property takes ownership to the buyer, and the seller gets reimbursed for the property.

The Closing Process: What to Expect

At closing, all parties involved will sign the necessary documents to finalize the transaction. If you are under the services of a title company, they will oversee the documents and the money to be exchanged for the property.

Options for Using Title Companies or Attorneys

Although most of the closing process will be dealt with the services of a title company, some sellers may opt, however, to hire the services of a real estate lawyer to offer more scrutiny on the legal issues involved. This is especially helpful where the sale touches on intricate legal matters or if the processes are new to you.

Filing of the Deed and Final Payment Transfer

Upon the signing of the act, it should be submitted to the office of the county register for registration. This is an action that legally assures the buyer of the property ownership. Also, after the recording has taken place, the funds of the buyer will be wired to the seller finalizing the deal.

Alternatives to Selling Land by Owner

In the event that the FSBO process appears to be overwhelming or too lengthy, there are other options to explore.

Selling Land for Cash: Advantages and Disadvantages

There are companies that purchase plots of land for cash which eases the process of selling and makes it quicker. Nevertheless, these buyers tend to pay lower than the market rates because of the ease of the transactions.

Utilization of a Flat Fee MLS or Engaging with a Real Estate Agent

Another avenue available to owners selling land, is to simply pay a fixed amount for the advertisement of their property in the Multiple Listing Service (MLS) only. This strategy helps to market the property effectively without incurring the expenses of paying regular agents. Nevertheless, if the thought of overseeing the sale itself is too much to bear, then a consideration to engage a real estate agent to run that aspect can be made. 

One agent who comes highly recommended for such purposes is Lucas Land, who specializes in the field of land selling. Working with someone like Lucas Land will require you to remit a commission to the agent, although this will be very beneficial in managing time and ensuring that all legal and procedural issues are tackled appropriately.

If you are ready for all that comes with the sale of the land, such as advertising, signing the contract, and filing the appropriate forms, selling land by owner can be less expensive as well as more beneficial. The alternative in this case – this step by step guide – will make sure you complete the FSBO process quickly, correctly and efficiently. Remember to obtain all the relevant paperwork, promote your land as appropriate, and take care with the negotiations and all the other legal aspects of the process.

While FSBO allows you to control the process and avoid the cost of commission, it is still demanding. If ever the course becomes too much for you, there are other possibilities like engaging a flat-fee MLS service or enlist the services of a qualified agent, for instance Lucas Land. You are in for the long haul but believe me, with the right strategy in place, you will be able to sell your land easily.