Selling Land in Utah
What you don't know could cost you plenty.Hire a Professional
What is most important to you when you sell your land? Is it the amount
of money you receive or knowing how the land will be used?
Value of Your Land
Value in land boils down to "highest and best use." Therefore, zoning
will be the number one issue to review when thinking about selling your land.
How is the land currently zoned and is there potential to change the zoning?
A professional real estate broker specializing in land sales is familiar with
zoning issues and can better provide guidance on this complex issue.
A general rule-of-thumb is that commercially-zoned land will be more valuable than residentially-zoned land. However, not always.
Location, location, location. How many times have you heard that? Every developer looks at location. It doesn't make much sense to develop a residential subdivision out in the middle of nowhere. Who will buy when they have to drive miles to the nearest store or gas station?
Who will buy a house next to an industrial manufacturing plant? Cities usually recognize this dilemma and provide zoning solutions to avoid this, but not always. Even if they are, it may take months or more to resolve the zoning issues.
Does it make sense to have a commercial piece zoned for a convenience store, but no humans around to purchase their products?
Availability of water and other utilities also will severely affect the value. If a developer is required to provide water and there is no water available to purchase, the value of the land declines. Sewer capacity also is an issue. Where is the nearest tie-in? It will be costly to run a sewer line from a mile away and will affect the value of the property in the developer's mind. This train of thought applies to other utilities as well.
Selling land is a complex issue. This article only hits on a few key points. Experienced real estate brokers know how to guide land owners through the process.
How Your Land Will be Used
Will it be an ordinary, unappealing subdivision or will it provide your
community with walking trails, parks, visually appealing features such as
trees, flowers, etc? Some owners are more concerned with this issue than
with what they will net from the sale of their family land.
It is important to know who the developer is and their track record. Visit their previous projects. Talk to your city planner to learn what the city knows about the developer. Try to negotiate a say in the project when presented with an offer to purchase.
Too often, we hear of land owners who were taken advantage of by unscrupulous developers. However, there are many good developers who want to pay fair market value for land and add value to a community with their project.
Both parties deserve to be treated fairly and be represented by a fair, ethical, and experienced real estate broker. Utilizing the services of an experienced real estate broker may help avoid some of the pitfalls of selling land.
