5 Considerations When Selling Land for Commercial Real Estate
Selling a piece of vacant land can be a challenge. In fact, it can sometimes feel like trying to sell a big piece of nothing. Unless the land is replete with natural resources or offers some type of breathtaking view, finding a buyer can be more about getting someone to believe in a vision than getting someone to fall in love with the property itself.
While this creates a major obstacle for many sellers, selling this vision to commercial developers can be a huge opportunity for those who know how to go about it correctly. By considering the five points listed below, it is possible to make any vacant piece of land seem like a gold mine for commercial entrepreneurs.
1. Make the Land Look Good
Many people who want to sell land fast underestimate the power of curb appeal, mistakenly thinking that it would be a waste of time to landscape a property that a developer will buy and immediately change to fit his or her vision. However, if selling land fast is, indeed, about selling this vision, it can be difficult to visualize anything through a sea of overgrown weeds and debris.
Therefore, it is important to regularly mow the property, prune and remove dead tree branches, and make sure that no litter has accumulated. Not only will this make the property look more attractive, but by demonstrating your own pride in ownership, it is more likely that potential buyers will assign value to it, as well.
2. Get in the Zone
Land buyers, in general, are a far narrower market than that for residential property. This market gets even more narrow when factoring in commercial intent. There will be a number of building codes and zoning restrictions that apply to a piece of land, limiting the ways in which it can be used.
Therefore, it is essential to know exactly how the piece of land is zoned. Many buyers may have preconceived notions about land that is, say, located next to a school or near a popular wilderness retreat, so by clearly communicating how the land can be used up-front, you may be able to interest a buyer that would have otherwise looked elsewhere.
3. Build a Network
Selling land or selling an agricultural business is a much more active process than selling residential property. While nearly everyone will have at least some interest in buying a house, a comparatively small percentage of people will be interested in buying land for development purposes.
As such, it is vital to do the legwork and create a market for the land. Talk to known developers in the area and see where they are at in terms of future projects. Visit businesses in your county that may possibly be interested in opening a new location. Go to neighbors and see if they would be interested in increasing the area of their property by taking on your land.
4. Understand Buyer Psychology
Location, location, location. It is the age-old real estate mantra. And while location is one of the main factors that residential buyers consider, it is the main factor for commercial developers.
A piece of land is only as valuable as what is going on around it. Have detailed information on any big city plans, nearby attractions in the works, and demographics of the potential client base. All of this will help buyers gauge what the future looks like for the property.
5. Have an Unbiased Perspective
For many sellers or those who even just want to sell a part of their land, moving on from a piece of land is likely an admission that their own development plans are never going to come to fruition. Or that keeping the land in good condition has become too much work. Whatever the case, it is likely that a landowner has poured a lot of heart and soul into the property.
When this happens, the sentimental value of a piece of land in the eyes of the owner can far outweigh its actual worth. Therefore, it is important to be objective, put a reasonable price tag on the land, and realize that even if the next owner does not develop it in the same way you had planned, that sale will likely lead to benefits for all parties.
Sell Confidently
Selling land can be quite the challenge. It requires owners to develop a market and get this market to buy-in to what the land could become. However, by adhering to the five tips listed above, there is every reason to believe that the ideal commercial real estate investor can be found, turning that vacant tract of land into a nice payday.
