Why Selling Land by Owner Could Be a Costly Mistake

By Fabi R. Gomes | June 10th, 2019

Selling land can be one of the most profitable real estate transactions a person makes. By relying on the expertise of an agent experienced with this type of sale, land sellers can avoid mistakes associated with these often-complex transactions.

Mistake #1: Not utilizing professional consultants

A prudent landowner will team up with an experienced real estate agent, who retains a team of experts including attorneys, appraisers, photographers, land planners, general contractors, surveyors, business damage experts, and other professionals to properly evaluate the land.

Mistake #2: Setting personal feelings aside

Enlisting a third party to negotiate the sale can be crucial in order to get top dollar for your land. Not only is the transaction a significant financial decision, but it can also be very personal to some sellers. A knowledgeable real estate agent will not only provide you with that confidence but will also serve as an expert on the land market, specifying the correct average price-per-acre in the area and negotiating it properly.

Mistake #3: Finance and legal handling

It is no surprise that often, even though an offer has been accepted, a deal may have a good risk of falling apart. Sellers with no representation may feel pressured by buyers to reduce the sales price if the contract price is not approved by the buyer’s lender. Worse, the owner may unknowingly be working with potential buyers who are not even pre-approved. Other important elements such as easements, road access, and mineral and water rights need to be included in the contract prior to the sale.

Mistake #4: Marketing your land the right way

When selling land, more than the land itself is being sold—including any possible income opportunities that may attract investors. An experienced real estate professional will ensure the land is properly marketed to appeal to a variety of buyers. Other attributes such as where to list it, the timing of the market, and list price can make a significant difference when it comes to closing a sale for fair market value.

Mistake #5: How quickly would you like to sell?

Real estate agents have built relationships with investors, as well as buyers who are searching for their dream property to hit the market. These networks are often the gateway to allowing a landowner to sell without headaches, make the desired profit–and avoiding a delayed sale, a stagnant offering, and risked profit.

To learn more about selling and buying land, contact one of our CBHarper agents from our Farm and Ranch Division. Many of these agents have an extensive land and ranch background, thus offering a deep familiarity and expertise in this area of real estate.

Coldwell Banker D’Ann Harper, REALTORS®  can be reached at (210) 483-7581 or pr@cbharper.com and has been an affiliate of the Coldwell Banker franchise system for over 30 years. 

Visit our Blogand our social media channels [Facebook,Instagram, Twitter, Pinterest, LinkedIn,YouTube] for supportive content and articles.

All data and information provided on this blog is for informational purposes only and shouldn’t be seen as legal advice at any point. Any facts provided on blog.cbharper.com is accurate and true to the best of the author’s knowledge and it makes no representations as to completeness, suitability, or validity.  All information is provided to author on an upper management approval basis. Coldwell Banker D’Ann Harper, REALTORS® and its employees will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Author may keep updating old posts on a regular basis and is not bound to explicitly state all corrections made. The opinions expressed by those providing comments to the posts are theirs alone, and do not reflect the opinions of the company or any employee thereof.