Maximizing Your Return When Selling Land – A Guide

Unlike houses, which sell quickly, land often takes longer to find a buyer, negotiate an offer, and close.

That’s why it’s crucial to maximize your return when selling land. That means understanding what factors impact its value, preparing for the long process, and knowing how to market it.

Market Analysis

Market analysis is an essential part of any business plan. It provides a clear picture of the industry in which you operate and helps you identify potential customer segments and determine how best to target them.

It also provides insights into your competition and helps you assess how you can better differentiate your company’s offerings to meet your target audience’s needs. A good market analysis can also help you recognize and address barriers to entry, such as regulations, which could make selling your product or service more challenging.

The land is one of the most misunderstood real estate assets because many factors impact its value. It’s critical for landowners to understand these factors and how they affect the value of their land so that they can take steps to maximize their property’s potential when it’s time to sell.

Successful land investors use a key strategy to generate a high return: dividing their property into smaller tracts. This strategy can be especially effective when a piece of land has multiple elements, such as tillable acres, timber acres, water acres, and remainder acres. As a seller, it can therefore be valuable to know the average Timber Prices, the average sale price for tillable acres, and the average sale price for remainder acres in your area (as well as the factors that go into determining these prices) in order to determine which is the best price strategy for your land and maximize your returns. 

Find Potential Buyers

Knowing to whom you want to sell your land is crucial. Thanks to sell land reviews, you’ll quickly identify prospective buyers and appeal to the right audience.

For example, if you have a large tract of land suitable for farming, you’ll attract more land buyers than a small plot that could be used for single-home construction.

One of the easiest ways to attract potential buyers is to price your land correctly. Pricing it too high can scare buyers away while pricing it too low will make it difficult for you to get top dollar.

Once you’ve determined the correct price, use it as a basis for your marketing strategy, as this can help you to Sell Land Fast and make a happy profit. If possible, it can also be a great idea to offer land financing as this will increase your pool of interested buyers and make it easier for you to sell your property.

Lastly, you can use different online tools and resources to promote your land for sale. These can include classified ads and a targeted listings platform like BoldLeads.

Identify the Highest and Best Use

A cornerstone of valuation is the idea of the highest and best usage. It requires that the appraiser identify the use of a property that can be expected to produce the most fantastic overall value for a given amount of capital investment.

Appraisers determine the highest and best use of property early in the process by applying four tests: physically possible, legally permissible, financially feasible, and maximally productive.

When determining physical possibility, the appraiser considers site size, shape, topography, soil type, and water conditions. He also examines whether zoning restrictions, land use planning, government regulations, and deed restrictions would prevent the development or improvement of the property.

It cannot be said that the proposed development or enhancement is for the highest and best use of zoning or land use planning forbid it. However, if the current use was “grandfathered in,” it may still be legally permissible if its prohibition is no longer enforced.

List Your Property

You need to figure out how to market it to potential buyers and deal with the numerous factors that affect its value.

Fortunately, there are numerous strategies for increasing your profit when selling land. Some of them are as follows:

Aerial photos of the property can be a great way to showcase its potential. Sellers can find quality aerial images through resources such as the county assessor, USGS online mapping tools, or area soil and water conservation districts.

Landowners can also decorate their properties to increase their curb appeal. Adding accents such as new fencing and trees can help make land more attractive to buyers, regardless of size or location.