Owning land is pretty easy – it rarely takes a lot of effort. But when you want to sell, that can be a different story. Do you own land and are wondering, “How do I sell my land to a developer”? At Emeritus Land Investments LLC, we’re often asked that question so we wrote this blog post to answer it for you…
First, it’s important to know what developers are looking for
Emeritus Land Investments LLC buys and sells land, and in the process has done quite a bit of land development. We have purchased, developed, and sold large tracts of land in Tennessee, Indiana, and Illinois, so we know what’s involved. A developer wants to be able to build on the property and sell it, so they’re probably looking for property that is close to infrastructure and services (like water, sewer, power, and roads). After all, they’ll need to connect these services to their development and they’ll want people to get to their development!
It’s okay if the land isn’t serviced right now, but developers will probably want to know how far away the services are and whether those services are being actively worked on by the city.
Second, you may want to bypass the real estate agent
A lot of real estate agents tend to work with residential homeowners who are looking to buy a house to live in. If you’re wondering “How do I sell my land to a developer?” you may need to find someone who specializes in selling land to builders and developers. That may be hard to find in your area. Another reason to avoid brokers on land sales is that the usual real estate commission for selling land is 10%.
Third, be aware of zoning when wondering “How Do I Sell My Land To A Developer?”
Developers will be looking to build, which may include potentially subdividing and doing additional work on the land. They’ll want to know how your property is zoned so they can anticipate the work required to build. Of course zoning can sometimes be changed, but zoning changes will just add to their timeline and workflow so it’s helpful for developers to know up-front how the land is zoned. It is customary for buyers to ask for a due diligence period of a year or more before the actual closing for re-zoning and other approvals. This period of time is used to obtain the necessary “entitlements”. The term “entitlements” is short for all of the licenses and permissions needed to develop a piece of land, such as zoning changes, preliminary plat approvals, preliminary engineering, Army Corps of Engineers approvals, FAA approval, Department of Wildlife approval, Bureau of Antiquities approval, and approvals from other governmental entities.
Fourth, be aware of the path of new construction
This one is harder for land owners to know but if you’re wondering, “How do I sell my All land to a developer?” this will be an important consideration that the developer is thinking about: If your land is not inside a city then a developer will probably want to know if the city is growing in the direction of your land. (Even if the city is not growing toward your land, that’s okay but developers will want to know). You don’t have to know this answer yourself but if you do, that will be helpful to developers.
Selling raw land can be challenging because it’s a very different kind of buyer. But if you’re wondering, how do i sell my land to a developer, then these 4 tips will help you.
To see an article about our work in developing a residential subdivision , click here Belle Meade pp13-16.