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 Dear
Steve,
I have some raw land that I would like to sell and would appreciate some advice. Do you have any pointers?
-- Gilda
 Dear
Gilda,
I can only give you a somewhat general response,
since there are so many variables to selling raw
land. Raw land, by definition, is unimproved land
in its natural state with no readily available
utility services or other amenities. The location
of the raw land will dictate its future building
potential and the level of interest in it, as
will its access to power, water and other necessities.
You should know that it is usually more difficult to sell
raw land than land with a home on it because the
buyer universe is much smaller, and financing
can be harder to arrange because of the inherent
risks of buying unimproved property. Hence, it's
not uncommon for agents to command a commission
between 10 percent and 15 percent for a more time-consuming
raw-land sale than the usual 5 percent to 6 percent
for a home sale. Most real estate agencies will
direct you to their land specialist, who will
probably desire a listing contract of at least
six months, compared with the 90-day or 120-day
maximum listing periods you'd want for a residential
sale.
To price the parcel, it will help to know where local population growth is headed and whether your land lies in the path of future progress. To get a little clearer picture of what a buyer will be looking for in your land, check with your planning and zoning department, which should have maps of existing and allowed land uses, list of planned roads and waste-disposal facilities, future-development forecasts and utility extensions.
Getting an up-to-date survey of
the property will also help because it will give
a potential buyer an accurate measure of the property's
boundaries. You'll need to hire a professional
land surveyor for this, and banks often require
such a survey in a raw-land sale.
Already having septic-tank approval from your local governing agency for the land will also make it a little more attractive, as will the latest information on the availability of water, electricity and other utilities to the site. You'll also want to talk with a tax attorney or CPA about the tax implications of a sale. There are fewer tax benefits in holding and selling raw land than improved land.
Obviously, if subdivisions or other developments are heading in the direction of your land, your sale price will be more substantial. After all, they aren't manufacturing any more land these days.
Here's hoping you don't get a raw deal on your raw land. Good luck!
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