Maybe you’ve seen the signs as you drive around, “Cash for land in Tennessee.” Some look almost cartoonish and others might even be handwritten and nailed to a light pole. Some cash for land signs makes claims they buy land in any condition and for all cash.
If you need or want to sell your land, this looks like the perfect opportunity to sell quickly without the headaches of waiting for a realtor to sell it.
Is Cash For Land In Tennessee Right for You?
The Cash for Land in Your Target Market
The individuals and companies putting up these signs are investors seeking quick, undervalued properties to capitalize on. By putting signs out, it minimizes the legwork out of researching properties and hones in on landowners wanting to sell quickly.
The key target market includes landowners in some negative financial situation. This or includes people facing job loss, bankruptcy or foreclosure, medical issues, or divorce. They also hope to find properties transferring ownership from probate sales, delinquent taxes and even existing listings that are about to expire.
The Thought Process Behind the Offer
Because investors are seeking properties for quick turnaround and profit, they want motivated sellers and properties that can be marketed quickly for resale. As the seller, this may or may not be your best play. The buyer is looking to ease your burden quickly. They know you have some emotionally binding stress in your life that requires a quick sale.
As a result, the offer might be for a fraction of the value of the land. At best, investors want properties at wholesale pricing, which is often below fair market value by a good amount.
Consider Your Position Before Negotiating
Keep in mind there is a cost to keep land. Everything from possible HOA fees, insurance, and property taxes must continue to be paid while you own the land. The longer you delay a sale, the longer you must pay.
Do the math then consider the average time it takes for land to sell in your market. In many markets it takes months and even years to sell land. There just aren’t as many buyers for land as there are for houses. Based on average pricing, will you make up the difference in the cost of the land for the extended timeframe?
It may also be urgent to sell because of an impending foreclosure or estate tax cash requirement. Consider all of these factors as you begin to consider offers from buyers.
Maximizing the Sale Value
It doesn’t take a lot of research to get an idea of a property’s fair market value. If you really want to know, see what land is selling for in your area on Zillow or Redfin, pay a couple hundred dollars for an appraisal or simply speak with a local realtor who will give you an idea of the value of your land in its current condition.
Once you know what the estimated value is based on current market conditions, look to see what can be done quickly and inexpensively to improve the property thus increasing the value.
Do what the investors might do. These include removing unsightly vegetation and trimming back landscape such as trees and bushes. First impressions are important. Yes, it may be a rural piece of land but what they see when they pull up may matter to a potential buyer.
Some investors may also provide some additional information the buyer will want to know. Consider having a survey done so they can see the property boundaries. If a septic system will be needed have a perc test done so they know how big of a house they can build. You don’t need to do this, but if you have the time and money to do so, it might be worth the investment and help the land sell quicker.
The bottom line is if you can extend your timeline of a need to sell, you can wait for a more traditional buyer to come along and give you an offer that puts some money in your pocket.