What To Know About Selling A Vacant Lot
Posted on: 9 February 2018
Are you looking to sell a vacant lot? While it can be a challenge to sell a home, a vacant lot can be even harder to sell. Here is what you need to know about selling a vacant lot.
A Realtor Commission Can Be Higher
You are probably well aware that a realtor will take a portion of the sale of a home as their commission, which is payment for their assistance with the entire sale. However, while a home sale may only offer a 5% commission that is split with the buyer's agent, that commission can be higher for a vacant lot.
Expect to pay between 10% and 20% for a realtor's commission on vacant land. This is because so much additional work is needed to make the sale, and the price of the vacant lot is going to be much lower than if there was a built home on the property.
It Will Be Hard To Present The Lot
A typical listing for real estate will include many beauty shots to help sell it to a potential buyer. Unfortunately, this is not possible with a vacant lot. You can take photographs of it, but all vacant lots are going to look pretty much the same when flipping through the pictures.
Instead of trying to sell people on a home with visuals, it takes more work to sell a vacant lot because you must rely on telling a buyer why that piece of land is a good investment. If the land is to be used for building a home, then information about the local school districts, crime rate, or distance to public transportation must be conveyed. These are not easy things to show through pictures.
Zoning Can Be Complicated
Another issue you'll run into is figuring out what kind of building can be built on the vacant lot. Is it zoned strictly for commercial use, or can the land be used to build a residential home? Existing restrictions can further limit who will want to buy the vacant lot, since it cannot be used for anything that the buyer wants to build.
Disclosures May Be Required
You'll need to check the state laws to find out how much information must be disclosed about the land you are selling. Some states do not require any disclosures, while others want a more detailed history of what the land was previously used for. Thankfully, a real estate agent can make sure that you disclose what is necessary about the property when selling it.
For more information and tips on how to deal with your lots for sale, contact a local real estate company.
Share