What Is the Difference Between Selling Land and Selling a House?
Selling a house and selling land may seem like the same thing in principle, after all both are a transaction. Yet, that’s where the similarity stops. Consider this question: have you ever bought land before?
If you have, then you’re part of a small and exclusive group of people in comparison to the rest of the population. However, if you ask people if they’ve ever bought a house before, then the numbers rise sharply.
And that’s the key to the difference. Owning a home gives us some insight into selling a home. We share some understanding of the motivation and mindset of the buyer.
However, there’s a lot about the desire to buy land that we may not understand, which will inevitably affect our ability to sell it. In this article, we’re going to talk you through the differences, and give you the insights you need to sell land effectively.
Know Your Market
One of the most basic principles of selling is to know who you’re selling to. If you get this wrong, then your sales message will be lost on the people you’re presenting it to.
House buyers are looking for something that they can see themselves living in and meets the needs of their family. Alternatively, they may be buying to rent or looking to develop the property and sell for a profit. When they come to see your property they will be thinking about what they can change or improve with the decor, furnishings, and general style of the property.
Your land buyer will come with a very different mindset. They will not be focusing on small details like carpets and double glazing and other small modifications. They will be thinking about the bigger picture.
Land buyers, depending on the reason for their purchase, will be thinking about how the land can be modified in a greater way to suit their overall purpose. Whether that is to use the land recreationally, build a personal property on it, or develop it for multiple constructions.
Difference Between Today and Tomorrow
Given the differences in perspective mentioned above, it can be appreciated that to a large extent, home buyers are focusing on what they’re getting today. Yes, they may want to make changes but these for the most part will not fundamentally change what they’re buying today as it were.
Land is different. Most often the land buyer is thinking not so much about what the land already is, but what it can become in the future. That fundamental difference is something that you need to be aware of and use to your advantage.
The Right Shop Window
Although it’s true that you can buy both housing and land from real estate agents, it’s worth noting that housing and land often sell using different channels. It’s a little bit like different shop widows for different product types.
You’re wise to seek out specific sales agents and websites, sales forums, etc that focus exclusively on selling land. This way, you can be sure that the people on those sites are actually land buyers. There are also podcasts and industry conferences that can provide an excellent opportunity to put your land offering in front of the right person.
Things in Common
Although there are many differences between selling land and houses, it’s not all apples and oranges. There are some key things in common. Location is King for housing and similar principles apply to land which can have a massive impact on the sale value.
Comprehensive information is important with specific descriptions. Generic fluff will not fool any serious buyer. Both a house and a plot of land will naturally suit a purpose of some kind.
Whatever that purpose is, make sure you recognize it and be sure to play to its strength by highlighting it in your marketing material. When it comes to land, you may need some professional help to understand what the land may be best utilized for.
Selling Land — Different Questions
Before someone will buy vacant land, there are questions they will want to ask that may not be the same as buying a house. For example, they will want to know if they can build on the land.
Accessibility to the land is an extremely important consideration, so there may be several questions about this and any right of way if there’s shared access. Potential buyers will also want to know about any tax implications, such as tax breaks associated with the land.
Other worthy questions for consideration are whether there are nearby utilities that can be connected to. Is there water access? These and many other questions need to be thought through beforehand as this will help inform your sales strategy.
Speed of Sale
In some cases, there are those who specialize in land purchases and want to buy vacant land. Even so, as a general rule, the speed of sale tends to be slower when compared with selling a house. This is partly related to the fact there are fewer buyers.
In the housing market when there are several interested parties, the speed of sale can be swift as there is a rush to close the deal. Some may even forego some of the usual checks and processes. Those processes cannot be overlooked in land purchasing as they are often fundamental to the successful use of the land.
In this article, you’ve learned about some of the differences between selling land and selling a house. True, you’re not on a ship but hopefully, this article has inspired you to be far-sighted and spot a land opportunity on the horizon.
If you’re selling land, then you should now be armed with some useful insights that will help you get a sale. When it comes to selling land, remember people’s motivations, where they look to buy and the questions they will ask you and you will be successful. Check out the latest articles on our website that will inspire your creativity in real estate.