Selling bare land or development land is vastly different than selling your residence. So it makes sense the person you hire to sell it, should be different too.
How To Sell Land To Developers
- Choose a real estate agent or brokerage who specializes in land sales and understands the process. Find someone who stays current on what’s happening in this sector and knows the ins and outs of selling land.
- Use an agent who provides a comprehensive marketing strategy. This might include:
- Market analysis and comparable sales of similar type properties.
- Using their website and social media to promote the land.
- Using signage for drive-by traffic.
Don’t be shy about asking what other methods they employ to market the land for sale.
3. Understand what uses the land is zoned for. Are there easements, right of ways, restrictive covenants or anything else that might affect the value or future use of the property?
If a property has to be rezoned, for instance, it will take time to work through the process. If the property is in the Agricultural Land Reserve (ALR), there are restrictions on what the land can be used for.
- Understand the tax implications when selling land. Will you have to pay capital gains? Is the sale subject to GST? Those are questions for your accountant and/or lawyer to answer before you sign agreements to sell the land.
- Ask for a large, non-refundable deposit. Selling land often takes longer than selling a residential property and completion dates can be a year or more. A buyer will be more prone to complete the sale transaction if they’ve already put up a large deposit they can’t get back and it provides the seller with some certainty as well.
- Find out the highest and best use for the land and market it to those buyers. Selling land is tricky, especially if it’s for development purposes so make sure you know what these uses are beforehand.
- Understand the terms of any offers before you sign. Talk to your accountant or legal counsel if there’s any question about the proposed terms. While your real estate agent can give you guidance, they aren’t lawyers or accountants and may not fully understand how the sale of land will impact your specific situation.
- Be prepared to wait. Just selling the land can take time, sometimes a year or more. After that, the buyer may have subject conditions to waive before the sale can complete. If they’re awaiting approval of development permits or rezoning, this can add a significant amount of time before you actually finalize the sale of the land.
- Ensure your real estate agent weeds out anyone who’s “just-looking”. Selling land is a lengthy process so you don’t want to waste time on anyone who is not a serious buyer.
- Don’t be afraid to ask questions. Ask your real estate agent, your lawyer, your accountant, and anyone else who can provide the expertise you need to sell the land.
Selling land doesn’t have to create a lot of stress. If you find the right agent to sell your development land, they’ll alleviate the hassle and assist you throughout the process.