by Laura Mueller
There are a few key decisions that you have to make when selling land: Who is your ideal buyer? What are the land’s uses and possible future uses? What are the zoning and regulatory rules of the property? And of course: How much is it worth?
Determining the value of your land is a fundamental part of preparing it for a sale. But in a market with few comps and major differences between available plots, it can be difficult to come up with a price. Placing an appropriate value on your land is important, though, and can make the difference between a fast sale and land that sits on the market for months—or even years. Follow the tips below to make sure you price it right.
1. Get multiple appraisals
You’ll definitely want to set up a land appraisal, but it’s even better if you schedule more than one. A land appraiser will use a variety of factors to come up with what they believe the value of your land to be. Relevant factors include your land’s features, topography, access, utilities, location, and size. An appraisal is subjective, however, and different appraisers may come up with different values. To get the most accurate idea of how you should price your land, you’ll want to get the opinion of multiple appraisers, all of which you can take into consideration when coming up with your final price.
2. Work with an experienced realtor
A realtor who has experience helping clients buy and sell land is one of your greatest assets when it comes to pricing your property. Agents have their fingers on the pulse of the market, and can provide you with critical insights about what someone might be willing to pay for your land (and ultimately, your land is only worth what someone is willing to pay for it). Find a realtor who you communicate well with and who has proven experience with the type of land you are looking to sell.
3. Know the possibilities of your land
Your land’s value is closely tied to the opportunities it presents. Vacant land that’s zoned for residential or commercial development, for example, is going to be worth more than vacant land that can’t be built on. To price your land for sale, you’ll want to educate yourself as much as you can on the future possibilities of your parcel. Look at zoning and government regulations for your property, and take into consideration whether your land is in a flood zone or an area prone to another type of natural disaster. It may also be helpful to have a representative from your local Building and Planning Department give you a full rundown of what sorts of uses your land is qualified for.
Pricing land for sale, much like pricing a house, is a mix between what you think you can get and what you hope you can get. The more you know about your land—both from your own observations and research as well as from what the experts have to say—the better you can come up with a price that’s set to sell.
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