How to Buy & Sell Land
Buying and selling land is more complicated than purchasing a residential home. There are many factors to consider such as sewer connections, road agreements and deed restrictions. And, if you plan on turning around and selling the land, making the right purchasing decision is important in securing a return on your investment.
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Instructions
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Learn about water and sewer connections. Ask your realtor to find out if city water and sewer service is available on the land. If these connections aren't available, make your offer contingent on your ability to gain the required permits to install these important connections.
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Research road agreements. If the land is accessible by a road that isn't public, ask about road maintenance agreements. This document binds every land owner on the road to assist in funding repairs and maintenance.
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Find out about deed restrictions. If you plan on building a home on the land, you should make sure there aren't any deed restrictions. For example, some deeds will prohibit manufactured homes on the land.
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Purchase the land. Once you find the right parcel of land, you're ready to make the purchase. Some land owners wait several months and sell the land for a profit, while others decide to build a home and hold the property for several years.
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Get your land ready to sell. Before selling your land, you should clean up piles of debris and anything that would look unattractive to buyers. For example, fill large puddles of water with dirt. Also, it's helpful to mark the legal boundaries of the land. This can be done by placing a white post at each corner of the lot.
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Enlist the assistance of a real estate agent. Select an agent that has experience selling land. Also, ask potential real estate agents how long on average it takes them to sell a parcel of land. Having this information should assist in making a decision on a realtor.
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Tips & Warnings
Understand development restrictions. If the land is in a development, there may be covenants that dictate a minimum square footage on a house and where structures can be built on the property. Having a copy of these restrictions will allow you to make a better evaluation of the property.
Uncover any environmental hazards. Any environmental hazards on the land should be disclosed. Ask your real estate agent to furnish these disclosures so you can make a decision about the property. If you purchase a piece of land with environmental hazards, you will be liable for the clean up.
