Why Does Land Fail To Sell?
If your land isn’t selling, you’re not alone. Learn the hidden factors that turn buyers away—and how to fix them fast!
Let’s get the elephant in the room taken care of right away - Is my asking price too high?
What I think it’s worth may not be what it is actually worth in today’s market.
Exactly how did I arrive at my asking price in the first place? Listing agent? Opinion of a friend? Sale price of a nearby property? Gut feel? No matter how, it’s not working.
It’s important to face the reality of true market value conditions. But how do I know what they are?
Get an appraisal from a certified land appraiser. An appraisal is a conclusion of value.
Get a CMA (comparative market analysis) from an experienced Real Estate Agent. A CMA is an opinion of value.
Want to know more about CMA’s? Check this out:
Avoid listing the land too high and then dropping the price repeatedly until an offer is made. It can make my listing appear weak, wishy washy, or even desperate.
Don’t think pricing is the only reason land won’t sell? Think again! Here’s what truly stops buyers from making an offer.
The buyers can’t clearly visualize what they are looking at on site:
Brush Clear the lot interior to take out dense understory and open up the buyer’s sight picture.
Mark the surveyed property corners by placing stakes with high-vis flagging tape on top.
Once the corners are marked and staked, brush clear the perimeter lot lines to about 4’ wide.
If the land is totally unimproved, would it be feasible to punch in a driveway and clear a suggested home site? This always helps me in large lot projects. Don’t overlook any required permits.
Think about it - As a general rule pretty will sell faster than ugly!
Clean up junk and remove personal property:
The image below says it all. How can any dirt look its best with all that litter around?
Also, why leave big trailers and equipment on site? It only diminishes the appearance of what is useable.
What contract terms are acceptable to me?
Sellers tend to assume that they will be cashed out at closing and that can be the ideal situation. However, if the land isn’t getting any interest or bona fide offers there may be other things to look at. Remember that real estate contracts can be highly flexible as long as the buyer and seller can agree, and both can see a value proposition:
Is there is flexibility to accept a good-sized deposit and then carry a promissory note from a qualified buyer? If yes, think about what the deposit should be, the interest rate, and the term of the note. The note can be secured by a Deed of Trust on the property in case of default.
If a there is a term contract, consider what restrictions should be in place until the note is paid-in-full. Think about what and how much the property can be changed until it is fully paid off.
Can a deal be sweetened if the seller offers to pay the closing costs for both sides of the transaction? This can help a buyer by minimizing cash outlay at closing.
Take a fresh look at a tired listing:
Look closely at the quality of the listing photos. Do they truly represent the potential of the land or were the quickly taken and used without full consideration? Upgrade as needed.
Look closely at what is said in the listing description. Does the verbiage describe the potential of the land and its value? Does it describe the positives of the surrounding area? If there are acceptable contract terms, is that clearly stated?
What does the sign look like on the property? Is it clearly visible from all angles? Is the sign placed squarely and is it fresh or is it old and tired?
Is the listing agent an experienced land agent in that area? Remember, there are sub-specializations in real estate brokerage that truly matter.
Finally, take a look at yourself as a seller:
One thing that will guarantee a lackadaisical effort from a listing agent is a lackadaisical attitude from the seller.
The seller that says - “We’ll put it on the market and just see what happens.” What kind of signal is that sending to the broker and the marketplace?
The seller that intentionally prices the land 20% above the known market value, hoping to strike paydirt with a dumb buyer.
A seller that lacks enthusiasm and determination, giving off a vibe of carelessness.
Just remember, the listing can go adrift for reasons other than the land. Analyze yourself and your motivations, then adjust, because you need to be the backbone of the listing!
Contact me at: ldr@landdevelopmentrealities.com
