Buying and selling vacant land is typically a specialized area within real estate. If you own vacant land, here are five things you need to understand about selling your vacant land in Tennessee.
Market is Less Active
The first thing you should know about selling your vacant land in Tennessee is that the land market has much less activity than the market for houses or commercial buildings. Vacant land buyers are a unique group of individuals who typically look at different areas of Tennessee with their own expectations and can spot a good deal when they see one. Most real estate buyers and sellers are looking for single-family and multi-family residences. There is also some activity in the commercial building area. Vacant land buyers weigh a lot of factors before making an offer for a parcel of vacant land, such as development costs, impact fees, survey costs, any HOA fees, and clearing and filling costs.
Prepare Your Land
When selling your vacant land in Tennessee you might benefit from spending a little time preparing your parcel. Cleaning up any dumped trash on the property will provide an improved first impression, as well as clearing out any undergrowth, overgrown trees or bushes (if you can do that easily), and keep the grass mowed. You will want to show the vacant land at its best so potential buyers will not be overwhelmed by what looks like a ton of work. You might also consider having a survey done ahead of time that specifically marks the property lines and corners. This will also allow the buyer to see how they can use the property to best suit their needs.
Don’t base your asking price on what you hope to get out of the property. Do research in advance to find the most appropriate asking price for your vacant land. If you really want it to sell, your asking price will be in line with other properties in the area. If you are highly motivated to sell more quickly, you should set your asking price for a little below market value. A lower priced property is more likely to sell than a comparably priced lot simply for the savings-everyone loves it when they think they are getting a good value. If you are not receiving any offers, you might want to consider dropping the price by a hundred dollars to attract more potential buyers.
Another thing to understand about selling your vacant land in Tennessee is that if you offer owner financing (a.k.a. seller financing), you will have many more potential buyers. Buyers will find it difficult to find a bank to finance their vacant land investment. Potential buyers that need owner financing are usually buyers that do not have a large amount of cash saved nor do they have the right credit background to qualify, especially if the deal does not include some kind of construction. Be sure to perform credit checks similar to banks when offering owner financing on land to save yourself from the hassle and aggravation of possible foreclosure or other litigation fees in the future.
Working With Professionals
When selling your vacant land in Tennessee, it is good to consider selling with professional help, whether that be a licensed realtor or a professional land buyer that works in that area. They can guide you through the process of marketing, selling, and closing the sale of your property. Please know if you work with a licensed realtor, your property may just sit on the market if they do not have a network of vacant land buyers at their fingertips. If you work with a professional land buyer, they will often provide cash offers with a quick closing time frame.