Want to sell your commercial land? It can be highly beneficial only if you try the strategic approach. But how to sell commercial land keeping the profit?
Selling commercial land is a bit different from selling residential lands. Unlike residential properties, commercial land typically appeals to a focused group: developers, investors, and businesses. The right insights, valuation, and marketing are key to positioning your commercial land for a successful sale.
So, don’t fret! In this guide, we’ll walk through the main steps—from valuing your land to effective marketing strategies—so you can make informed decisions every step of the way.
7 Steps on How to Sell Commercial Land
Whether you’re an owner looking to cash out or a real estate investor ready to liquidate, selling your commercial land takes a thoughtful approach. Here’s your roadmap with expert tips-
Step 1: Be Iformed about Market Trends in Commercial Land Sales
Yes, keeping up with market trends gives you a leg up. The commercial real estate scene shifts frequently, especially with factors like remote work and e-commerce demand reshaping certain sectors.
In 2022, the U.S. saw about $730 billion invested in commercial real estate, with roughly 15% involving land sales. This shows a huge increase in commercial land saling projects.
According to NAR (National Association of Realtors), office vacancy rates were near 12% by the end of 2022, which has impacted land values in traditionally office-focused areas.So, you can expect the demand.
Pro Tips:
- If your land is suited for industrial projects, capitalize on the ongoing e-commerce boom.
- Check reports from real estate firms for insights on your area.
Step 2: Accurately Evaluate Your Commercial Land Value
Pricing commercial land must be strategic than setting a price for residential land. Factors like location, zoning, and development potential weigh in the price.
According to the U.S. Department of Agriculture, the average value of an acre of commercial land was approximately $7,200 in 2022, though this varies widely by state. For instance, land in California averages $15,000 per acre, while Texas lands closer to $10,000.
Again, in bustling city centers, commercial land prices can exceed $100,000 per acre, reflecting prime zoning and accessibility.
National Council of Real Estate Investment Fiduciaries (NCREIF) study shows, commercial real estate values in prime urban areas can be significantly higher than rural properties. So, think before you set the price.
However, land zoned for industrial use tends to carry high value, especially near distribution hubs. So, considering these facts evaluate your land or use any free land value estimator to get the idea.
Land Valuation Tips:
Hiring a certified land appraiser familiar with your area can provide a solid valuation based on recent comparable sales.
Step 3: Get Essential Documentation Ready
Necessary paperwork for land selling is a must. Commercial land buyers need detailed information to make an informed decision.
Research shows, about 40% of commercial land transactions require environmental assessments. Buyers, especially for industrial land, often want reassurance that the property is free of legal disputes
Essential documents include:
- Title and Deed: Confirm ownership and clear any title issues.
- Zoning Details: Zoning regulations affect both use and value.
- Environmental and Soil Reports: Important if your land was previously used for industrial purposes.
- Land Survey: Up-to-date surveys help confirm boundaries..
Step 4: Identify and Target Your Ideal Buyer Group
If you know your land buyer, it would be pretty easy for marketing strategies.For a commercial land buyer, here’re some target buyer ideas.
- Developers: Often looking for land for mixed-use or housing projects.
- Investors: With steady interest rates, investment in commercial land remains popular.
- Corporate Buyers: Companies often seek land for warehouses or data centers to expand their digital infrastructure.
Step 5: List the Property and Develop a Marketing Strategy
Marketing is essential. An effective approach includes online listings, professional photography, and exposure on industry platforms. There are various effective website for selling land faster.
Digital Impact: About 70% of real estate buyers start online. List your property on LoopNet, Crexi, and MLS etc. land selling listing sites. However, Super Land Buyer can also help you with hassle-free quick land selling process.
Use Quality Visuals: Listings with high-quality photos or drone shots can get 50% more inquiries.
Leverage Local Networks: Connect with local brokers who know the regional buyer landscape.
Marketing Tip:
- Highlight zoning, high return potential, and any incentives for developers can attract potential buyer fast.
- Consider social media sites like Twitter, LinkedIn and industry-specific portals, target ad capmaigns to reach target buyer.
Step 6: Negotiate with Confidence
Once you get buyer’sattention, negotiate terms with clarity. Here’s what typically influences commercial land deals:
Closing Time: Average closing for commercial land can be 60 to 180 days.
Seller Financing: About 15% of commercial land deals include seller financing, making it easier for buyers to close high-value purchases.
Closing Costs: Expect these to run between 2% and 5% of the sale price, covering title insurance, attorney fees, and filings.
Besides, buyers may request final inspections. Cooperate fully to ensure no last-minute issues arise.
Negotiation Tip:
Keep flexible with contingencies, especially if the land has a past industrial use holding firm on your deals.
Step 7: Close the Deal
Understand that commercial real estate closings can take longer due to additional inspections and paperwork. The sale is complete once both parties sign and the title is officially transferred.
However, some other papers like,if your land was previously used industrially, an environmental certificate might be required.
Final Thoughts: Make Commercial Land Sale a Success
Selling commercial land can be rewarding, especially with thoughtful preparation and a grasp on current trends. Accurate pricing, strategic marketing, and a clear approach to documentation can help attract serious buyers and lead to a smooth transaction.
Hopefully, you have gone through all the 7 steps to get idea about how to sell commercial land. Remember, patience is key in commercial real estate, as it takes time to sell land.
So, with the right approach, however, you can successfully sell your commercial land and achieve a fair return on your investment.
FAQs
How do I sell commercial property?
To sell commercial property, start by assessing its value, understanding current market trends, and preparing necessary documentation (like zoning info, title, and environmental reports). From there, list the property on commercial real estate platforms (e.g.,Zillow, LoopNet, Crexi) and prepare to negotiate terms with potential buyers and work with a closing agent to finalize the sale.
Can I sell commercial property with a salesperson license?
Yes, in many states, a real estate salesperson license allows you to sell commercial property. However, some states may require additional qualifications or a brokerage license for certain commercial transactions, especially high-value or complex deals. Check with your state’s real estate regulatory board for specific licensing requirements.
Is selling commercial real estate difficult?
Yes, a bit. Selling a commercial land can be more complex than selling residential property due to factors like zoning laws, longer transaction times, and paperwork. However, with thorough preparation and possibly the help of a commercial real estate broker, the process becomes manageable.
