The decision to sell a vacant piece of land is one of the biggest real estate transactions property owners face. In some cases, a property owner’s financial needs dictate they must sell quickly, but in other situations, an individual may wish to secure maximum sale value and explore all sales options before making a final determination.
A reputable local land buying company may offer cash offers and expedited closes, which appeal to many owners looking for speed and ease. However, there are also a number of pros and cons to consider before choosing this route.
Pros: Speed – Companies that buy land typically extend all-cash offers within weeks of document submission. This enables a quick close without the wait for bank approval and mortgage underwriting timelines. Also, with no buyer inspections or other contingencies, the entire process can be completed in a matter of days. Cons: Lack of certainty – Since most pros and cons of selling to an Arizona land company buying companies purchase properties at discount to their market value, sellers cannot expect to receive full retail price. The amount of the discount varies, depending on factors like parcel size, terrain, development costs and local real estate trends.
Costs – Land buying companies often charge transaction fees and/or closing costs, which can offset some of the savings from not having to pay real estate commissions. Additionally, they will likely have to perform a survey in order to assess the property’s boundary lines and encroachments on adjoining land, which can add to your selling expenses.
Time – Marketing a property for sale by owner can take weeks or months before receiving viable offers, even when using the help of a real estate agent. With so much competition in the real estate market, it can be difficult to attract qualified buyers. This can result in multiple low-ball offers from unqualified individuals, which could lead to frustration for the seller. Using a professional company can eliminate this problem, as the firm will have experience in the local land investment market and know how to accurately price properties based on current trends.
Cons – Sellers who sell to a land company can be expected to receive a discount of 30%-60% below estimated fair market value, due to the fact that these investors are in the business of purchasing property at below-market prices and then reselling it for profit. For some, this is an acceptable trade off for the speed and convenience of the sale process.
In conclusion, there are several benefits to selling to a local Arizona land company. For some, a fast cash sale is essential for financial reasons and the hassle of dealing with bank loans and other potential delays. Other homeowners may wish to sell their land for maximum value, and they can do so by following traditional open market sales methods, with patience and the assistance of knowledgeable professionals.
No matter your situation, it’s important to make a well-informed decision that works best for you as a property owner. If you have questions or need additional support, be sure to contact the experts at Compass Land USA. We’re happy to provide the information and guidance you need to make an informed land-selling decision!