Land Sellers Frequently Asked Questions
Top 10 Questions from Land Sellers
- What's my land worth?
- Should I develop my land or sell as a whole tract?
- What are the tax implications of selling?
- Can I do a 1031 tax deferred exchange? Should I?
- How can I add value to my land?
- How long will it take to sell?
- Do I need to survey the property before sale?
- Should I have my timber logged before selling?
- Is my property zoned correctly?
- What is the market like today?
Top 10 Questions from Land Sellers
- Location
- Condition
- Price & Terms
- Market Demand
- Financing alternatives.
- Highest & Best Use
- Ask a professional
- REALTOR
- Appraiser
2. Should I develop my land or sell as a whole tract?
Do you have the time?
Attitude?
Desire?
Financial ability?
Team in place?
Marketing ability / team?
Tax consequences
3. What are the tax implications of selling?
Income Taxes:
Real Estate Taxes
4. Can I do a 1031 tax deferred exchange? Should I?
Real estate, including raw land, qualifies as "like kind" property for the purposes of 1031 tax deferred exchanges.
5. How can I add value to my land?
Answers equal better prices and faster sales.
- Does your property's condition match the highest and best use?
- Proper zoning
- Access
- Survey, topography, wetland delineations
- Concept plans
Questions equal lower prices and longer sale times.
- Contingent sales
- Longer due diligence periods
Improvements and Enhancements
- Improve access
- Improve views
- Timber - selective cuts, planting trees
6. How long will it take to sell?
Variables
- Size of property
- Location
- Condition
- Price and terms
- Market conditions
- Absorption rate
- Marketing plan
7. Do I need to survey the property before sale?
Answers equal better prices and faster sales.
8. Should I have my timber logged before selling?
Factor of condition.
- Balance income vs. affect on sale price
- Select cuts may enhance value
- Clear cutting usually decreases value
- Once it's cut, it's gone. Generally, error on the side of taking less
- Always good to clean up deadfalls, dead & dying trees
9. Is my property zoned correctly or should I try to get it changed?
Depends on your objectives
Highest & best use
Development factors: access, utilities, path of progress
10. What is the market like today?
Good but oversupplied in some categories.
Lots of choices but few that meet most of your desires and requirements
All real estate is local.
