You own a piece of property and you are thinking about selling. Put up a sign and wait on the phone calls. Sounds pretty easy doesn’t it? Let me give you some thing to think about.
- Everybody needs a roof over their head and a bed to sleep in, not everyone wants to own a tract of land.
- Land is primarily purchased with discretionary income, not everyone has extra money to invest.
Let me give you some figures to review. I pulled some numbers off the local Multiple Listing Service for a 2 county area in West Central Georgia. Take a look. These are properties currently on the market.
As you will note there are a lot more houses for sale than land. Granted not all land is listed on the MLS, but you see the point. How much of these listings are actually selling. I went to the same database to look at sold and expired listings.
See the following.
These numbers just jumped off the page at me. The absorption rate for residential is much higher than land, i.e. a higher percentage of residential listings SELL. Unfortunately, that is not the case for the land and lot listings. Wonder why? I have some answers.
- Most of these listings were handled by Realtors who primarily sell house and are not qualified selling Land.
- These properties were not properly advertised. Most buyers search for Land on the internet and use sites such as LandWatch.com, LandandFarm.com and LandFlip.com
- Buyers need tools not provided by the listing agent such as aerial photography and topographic maps.
- Residential Realtors typically do not price Land correctly. Most rely on the MLS and do not search in other places. Lots of Land does not sell through the MLS and Realtors generally do not seek out these other sells. This info is available at courthouse, on-line and by talking to appraisers.
If you are contemplating selling Land, talk to a Land Broker and preferably an Accredited Land Consultant. Professional Land Brokers will give you valuable information that will assist you in your decision to sale. You need an accurate snap shot of the market and need to know where and how your property will be advertised.
The days of putting up a sign and taking pictures of a few trees are gone. Buyers want information, so choose someone with a proven track record.
G. Kent Morris
Accredited Land Consultant
Associate Broker Waddell Land Co.