Selling land is both different from and more challenging than selling a house. Pricing is trickier, the target market is different, marketing has to be different, and it often takes longer. If you want to sell your land, you need to understand these differences and know why you need to use an experienced agent. Simply put, the market dynamics are different, and it takes a different approach. So check out these 5 ways an agent can help you sell your land in Chicago.
1. Pricing Challenges
The first way an agent can help you sell your land in Chicago involves pricing. Just as with selling a house, “[p]pricing can determine your success in attracting potential buyers, and pricing your lot or land too high is one of the biggest mistakes that sellers make . . . and regret. The wrong price will both scare away buyers from even inquiring about your property, and will cause your property to take longer to sell.”
The difficulty with pricing land lies in the fact that you can’t just do a quick comparative market analysis to easily determine fair market value. “Developed lots in communities may have a clear“market” price based on the recent sale of similar lots. Raw land, however, may have fewer ‘comparable’ sales to use in determining your price.”
In addition, the price you can ask (and get) for a parcel of undeveloped land depends in large part on the buyer’s intended use of that land. For example, a buyer who intends to develop the land for housing addition would be willing to pay much more than a buyer who wanted the land for recreational uses.
A local agent with experience selling land can help you with these pricing challenges. To discover more about pricing land, contact a Chicago agent at 773.233.2301.
2. Different Marketing and Sales Tactics
In addition, to the pricing challenges when you sell your land in Chicago, you’ll also have to contend with the fact that the market is different and calls for different marketing and sales tactics.
First, land buyers are different from home buyers. “These groups of people have very different perspectives, desires and needs. Homebuyers usually want move-in-ready, with granite countertops. Land buyers, whether individuals or developers, are looking for the right location and an opportunity that lets them customize to fit their needs.”
And the market for land is less active. “The market for existing homes is almost always more vibrant than the land market. There simply are fewer numbers of buyers for vacant land than consumers looking for homes. Start marketing a new home listing and a new lot listing when both are desirable and priced well, and you generally can expect fewer contacts about the new lot listing.”
What this means, then, is to sell your land, you’ll have to deploy appropriately adjusted marketing and sales strategies. And, again, this is another area where a [market-city] agent can be a valuable asset. To discover more on this, just call 773.233.2301.
3. The Time Commitment
You could, of course, price, market, and sell your land all on your own. But do you have the time it will require?
“Can you rush home from work every time someone wants to see your [land]? Can you excuse yourself from a meeting every time your phone rings with a potential buyer? At the end of a long workday, do you have the energy to take advantage of every possible opportunity to market your [land]? Are you an expert in marketing [land]?”
For most of us, the answer to all these questions is a resounding “No.” Your agent, though, will make time for all these tasks because it’s her full-time job.
4. The Network Needs
Another important way an agent can help you sell your land in Chicago is through her extensive industry contacts.
Of course, you may have a broad professional network as well, but will these contacts really be interested in buying your land? Will they be the right target market? Probably not.
An agent, on the other hand, will have a long list of names of potential buyers and contact information. An agent will “have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.” Keep in mind that a “smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”
5. The Marketing Adjustments
As we mentioned early on, if you want to sell your land, you’ll have to deploy different marketing strategies. One of the most important of these is highlighting the right features to ensure a sale. And, again, a Chicago will know how to do this.
For selling land, you have to understand what its best and highest use is (at least potentially). Understanding this will allow you to know exactly what features to highlight, which, in turn, will allow you to target the right buyers. With homes, the best use is a given. But with land, you have to figure it out and market accordingly.
It should be pretty plain, then, that selling land presents quite a few more challenges than selling a home, some of which are pretty big challenges. But an experienced Chicago, contact us today at 773.233.2301.