Buy and Sell land is an attractive way to invest and an alternate to investing in buildings. Buying land is an ancient form of investment which is still valid.
Undeveloped land, improved land, or agricultural land can be bought as an investment or for use in future. Lands with access to roads, electricity, sewage, and water are preferred. The improved lands are also easier to get loans and financing. Buying lands that have access to the utilities is also suitable for construction loan applications. Inspections, consultations with local city departments, and utility companies can be done to get a fair understanding of the land. Using Google Earth, buyers can look at the neighboring properties to know more about the land.
Land can be bought using cash or loans which may require twenty per cent downpayment. Real estate agents and brokers sell land at auctions to attract more buyers. Lands are also bought in a large scale for parking money. Improved land is treated as an asset and the property tax may vary. If you buy a lot, monthly Home Owner Association (HOA) fee may be applicable. Future developments must be planned out before buying land for investment. Appropriate legal documents must be procured from the seller and all transactions must be recorded.
Land has a huge scope for development and the value can increase based on the growth in the area. In areas with high population density, any land for sale is valued at higher rates.
For selling land, identifying the buyer is a key challenge. Before initiating the selling process, land must be maintained and updated. Cleaning the area, mowing the land, or clearing the snow for access is crucial. Posting appropriate signs for sale are required.
Key facts about the land such as square footage and infrastructure available must be displayed. Additional benefits about the land can be explained through pamphlets or brochures. Some out of town buyers may not be aware of the financing options available for that land. All the details must be listed so interested buyers can get required information.
Getting the documents ready for selling is recommended for the sale. Going through a realtor is suggested but ultimately the seller is responsible for completing the sale process. Buyers may back off in the last minute. Hence, having additional time for selling is important.
Buy and Sell land has many advantages for investment and/or future use purposes.
Buy and sell land seems to be maintenance free but some areas do require upkeep. For example, if you have empty lots in the middle of a residential area, you may be required to mow the lawn or clear the snow. If you ignore the land maintenance, the neighbors may complain and city may get involved.
It is essential to know the usage requirements for the proeprty. Remote land owners must visit their property or subcontract the maintenance. There is a chance that your land might be sold twice or occupied by some one else if you ignore it for too long. For a residential land, narrow lots can be left unusable due to the offsets required by the city or the Home Owners Association (HOA).
Land which has landfills, nuclear plants, flood zone, bad topography, poor soil quality, lower rating school zones, high crime rates, and so on are hard to sell. There is a chance of people camping on your land, if you do not monitor it.
Another disadvantage of land is the lack of liquidity for urgent needs. Selling land may take months to years and if you need that money, you may not get it in time.