Buying and selling vacant land is usually a specialized facet of the real estate market. If you own vacant land or are thinking about owning vacant land, here are five things to know about selling your vacant land in Chicago.
Market is Less Active
The first thing you need to understand about selling your vacant land in Chicago is that the real estate market is less active than the market for residential or commercial buildings. Vacant land buyers are a specialized group of individuals who usually have set values attributed to different areas of Chicago and know a good deal when they see one. Most of the buyers and sellers in the real estate market are after single-family and multi-family residences. There is also some activity in the commercial building sector. Vacant land buyers take a lot of factors into consideration before presenting an offer for a piece of vacant land, such as development costs, impact fees, survey costs, and clearing and filling costs.
Prepare Your Land
Selling your vacant land in Chicago might benefit from a little preparation on your part. Cleaning up any dumped trash on the property will definitely help, as well as clearing out any overgrown trees or bushes if that is easy to accomplish, and keep the grass mowed. You will want to show the vacant land at its best so the potential buyers will not be scared away by the seemingly overwhelming task ahead. It also might benefit you to have a survey done ahead of time that specifically marks the property lines. This will also give the buyer a better idea of how they can use the property to best suit their needs.
Do your research to find the most appropriate asking price for your vacant land. If you really want it to sell, your asking price will be right along with the market value. If you are highly motivated to sell quickly, you might want to set your asking price for slightly below market value. This lower price property is more likely to sell than a comparably priced lot simply for the savings. If you are not receiving any offers, you might want to consider dropping the price by a hundred dollars to attract buyers.
Another thing to know about selling your vacant land in Chicago is that if you offer owner financing, you will have many more potential buyers. It is difficult to find a bank to finance vacant land investment. The potential buyers that need owner financing are usually buyers that do not have a large savings nor do they have the right credit background to qualify, especially if they are not including the vacant land in a construction loan scenario. Make sure to conduct buyer checks similar to banks when offering owner financing on land to save yourself from possible foreclosure or other litigation fees in the future.
Working With Professionals
When selling your vacant land in Chicago, it is a good idea to consider selling with the help of professionals, whether it be a licensed real estate agent or a professional land buyer. They can help you through the advertising and closing process. If you work with a licensed real estate agent, your property may sit on the market for a while if they do not have a network of vacant land buyers. If you work with a professional land buyer, they will often have cash offers with a quick closing time frame.