What You Need To Know About Buying and Selling Land
Buying or selling land can be very different from buying or selling a home. Homeowners who want to buy or sell land should understand these differences before starting the process.
The Process of Buying Land
Buying land is exciting under the right circumstances. Knowing that there may one day be a house on a property can make buying that property very rewarding. Below are some of the ways that buying land is different from buying a house.
Financing Differences When Buying Land
It's hard to get a loan for land, and some land buyers may find it impossible. Banks need a house in order to leverage the loan, so unless there's a building on the property, many land buyers must pay for the property outright. Sometimes it's possible to find a land owner who is willing to finance the purchase for the buyer. If not, the buyer will need to have a lot of cash on hand.
Get Necessary Tests Done
Just as it's important to get a home inspection on a pre-existing home, it's important to perform environmental tests on a plot of land. Environmental tests can sometimes reveal when a plot of land isn't suitable for a residential building. It's also important to get a survey done on the land to ensure that the boundaries of the lot are correctly marked. The survey information becomes important when it's time to buy the lot, but getting the survey done before making the purchase can prevent any nasty surprises.
The Process of Selling Land
Selling land is different from selling a home in many different ways. Land owners who aren't prepared for the differences may make mistakes that they later regret.
Fewer Interested Buyers for Land Sales
In general, land just doesn't sell as quickly as existing homes. Land owners who want to sell their property should start the process as early as possible. It's also important to prepare for a wait. Sometimes it's easier to sell plots of land in populated areas, so rural land owners should prepare for a longer wait compared to land owners in more desirable locations.
Staging Can Help Sell Land
This is one way that selling land and selling a home are similar: staging can help either way. Still, the act of staging land is much different than the act of staging a home. In general, it's an easier process, though it does require routine maintenance. Here are a few steps to perform to stage land effectively:
- Remove weeds
- Clean up trash
- Cut down dead shrubs and trees
- Plant flowers or healthy grass
When taking pictures of vacant land, landowners should be careful to take pictures of the property in its best light. It helps to work with a professional photographer to get the right shots.
Finance the Land Sale
As already mentioned, it's hard for land buyers to get a loan. Landowners who want to sell their property are more likely to get offers if they offer financing to land buyers in need.
Pick the Right Price
Pricing land can be tough, because there are often fewer comparable properties. Pricing land too high can make the sale take even longer, so it's important to get the price just right. Working with a reputable real estate agent can help.
Work With a Real Estate Agent
Regardless of whether or not you're buying Palos Verdes Peninsula land or selling it, it's important to work with an experienced real estate professional. The real estate professional you choose should have experience helping buyers and sellers with land. Experienced real estate professionals will have a better understanding of the differences between vacant lots and pre-owned homes, which will help the transaction go smoothly.