Plots of land can be hot commodities, especially for developers. Many residential and commercial developers are looking to pay top dollar for land that meets their needs.
As a result, selling land to developers can be lucrative, but it’s a competitive market. If you want to ensure your land sells, you have to do all you can to increase your odds of closing the deal.
Selling land to developers isn’t a straightforward task. It requires expertise and a bit of foresight to win over buyers and get the best deal.
Here are six tips for selling land to developers.
1. Know Your Zones
Developers want land that’s already zoned for their intended purpose. No developer wants to jump through hurdles to start development. For that reason, you should figure out what your land can already legally be used for.
If you aren’t sure about your land’s zoning, get in touch with your local Building and Planning department. They can usually help you find the answers to questions regarding zoning.
Here’s the thing, zoning can be altered down the road. So, even if your land isn’t ideally zoned, developers can make the change if they need it. You simply want to ensure you know how your land is zoned so that you can adequately inform any interested developers.
2. Always Be Expanding
Whether commercial or residential, developers tend to have voracious appetites. You may have the perfect land, but if you don’t have enough of it, developers are going to pass for larger plots.
For that reason, it’s imperative to scoop up surrounding plots when you can. The exciting thing about selling your land to developers is that they typically pay much more than standard rates. As a result, purchasing more property now can lead to a substantial return down the road when you sell to a developer.
Networking is a crucial part of selling land to developers. While you will likely have your property listed online, you still want to take opportunities to shake hands with potential buyers. You never know which interaction could lead to the prominent developer scooping up your land.
You don’t even need to meet developers directly. Sometimes you’ll network and meet a connector – someone who knows someone who can get you in touch. Those in-person connections can be real difference-makers in the big scheme.
4. Be Aware of New Construction and Growth.
Here’s the reality. Most developers aren’t going to want a plot of land in the middle of a vacant town. Remember, whether residential or commercial, developers are looking at several factors to determine where to buy and build.
These factors include things like:
- Unemployment Rates
- School Districts
- Median Household Income
- Government Incentives for Development
- And More
Developers are always interested in proven, profitable areas or up-and-coming locations. It’s essential to think like a developer and consider why they might want to purchase your land.
Is the town showing signs of growth? Does the town need more residential options? Are there other developers looking at your land or buying up land around you?
Keep your hand on the pulse of new construction and growth in the area, so you know how to entice and inform developers about your property.
5. Work with an Agent and List Your Land
Real estate agents know the market. They can offer critical insight and experience. More importantly, agents have a Rolodex of connections waiting to call. They can help you network and find the perfect developer for you.
Many landowners put off working with an agent only to sit on the market for years without action. Team up with an agent from the beginning to multiply your chances of finding the right developer quickly. Be sure to do your research on an agent, though.
Not all real estate agents understand land or selling to developers. Do a little digging and make sure to choose an agent who has the expertise you need. Beyond that, make sure to list your land online.
Most developers search online databases for land. If you aren’t listed, you’re missing out on one of the primary marketing opportunities out there. Get your land listed and get an agent to maximize your chances of success.
6. Be Patient
While this might sound like a cheesy tip, it’s an important one. Selling land takes time. Getting the attention of wealthy developers can sometimes take even longer. Even if you follow the five tips above, you might still have to wait a while. Like we said, selling land to developers is no easy feat.
However, there are countless stories of people sitting on their land and making a fortune when the right developer spotted it at the right time. As long as you stay patient, be persistent, and follow the tips above, you have a fantastic chance of selling land to developers.
If you’re planning on selling your land, create a listing on Land.US today for a streamlined, targeted approach.