Tips on Selling Raw Land

Raw land involves a different market than housing.

Raw land is any parcel that doesn't have buildings or "improvements" on it. This can range from a vacant lot in a city to a large parcel of untouched land in a rural area. The best methods of selling raw land differ depending on its location and what type of buyer you are trying to access.

Know Your Buyers

Knowing what type of person might be interested in your land can help you to focus your advertising on those people. If you are selling a large parcel of range land, you can advertise it in periodicals read by ranchers. If you are selling a vacant lot in a desirable commercial location in a city, you might focus on developers and people involved in real estate. Do your best to find out what the intentions of potential buyers are, particularly if you are concerned about the fate of the land you are selling. Farmers sometimes sell raw land after working it for decades, and feel quite strongly about it continuing in farm use and not being used for houses.

Subdivision

If the parcel you are selling is large enough that it restricts your market of potential buyers, you might consider subdividing the land. This involves hiring a surveyor who determines new boundary lines, then going through the legalities of changing one large parcel into several smaller ones. You can then sell one and keep the rest, or sell them each separately. In some areas, the size of the parcel will affect what the landowner is allowed to do with the land. Learn about possible restrictions before you subdivide, as restrictions may affect the desirability and saleability of the land.

Auctions

Consider selling the land through an auction if you are interested in selling it quickly. You probably won't get as high a price as if you sold it through conventional channels, but the sale will be resolved quickly. Land auctions sometimes occur on the parcel itself, and sometimes at an auction house after giving bidders an opportunity to inspect the land. Land can also be sold through online auctions. If you choose this method, go to the land and make a video of it that you can post online. It is difficult to give a sense of raw land through still photographs.

Real Estate Agents

Most land and property sellers conduct their sales through the services of a real estate agent. If you are unfamiliar with the real estate market, this can be the easiest way to do it. Most agents charge a fee of around five percent of the selling price. Agents have access to centralized listings and websites that sell land, so going through an agent is an easy way to get the word out about your land sale. If you have a lot of contacts yourself and think the land can be easily sold, you may want to forego the services of an agent and keep the five percent for yourself.

References

• University of Minnesota Extension: Should You Sell Your Real Estate?
• Wisconsin Department of Natural Resources: Selling Your Land