Trying to sell an empty lot - how to list?

Question

Hey everyone. First time posting here.

I was left an empty lot of residential land in north Texas by my father, and I'd like to sell it. I have all the pertinent information from the tax office, but I'm just not sure where or how to list it. I'm willing to sell it for less than it appraises in order to be finished with it, but I just need some advice on how to get started.

Any thoughts?

Thanks in advance for any help!

-Josh.

George P. · Answer

100 against 1 that city acquired the lot due to unpaid taxes. In which case the owner didn't get anything but saved a lot of money for not paying property taxes
City is not in business of land banking.
Call local developers and offer them your lot

Steve Babiak · Answer

The neighbors who abut the property are the best possible ones to buy, as mentioned by others.

I would check into how the city acquired the parcel next to yours.  I'm thinking that the city didn't buy it - IMO they took it over to pay for unpaid property taxes.  Which is another way to get rid of property (sometimes).

Joel Owens · Answer

Part of the problem is ongoing holding costs owning land and the long recovery time in many parts of the country before you will see a return on the investment.

Does the lot have a mountain,ocean,golf,lake view etc.??

Is it in a subdivision with an HOA??

The neighbors will be the best bet or the city.Don't expect to get much out of it.How old is the appraisal?? Even current appraisals are worthless these days.

With land you will be looking at a cash buyer.Banks have too much construction loan defaults on the books already.

Josh Ness · Answer

Thanks for the advice, guys! I've talked to the neighbors. Also, the empty lot next to mine is owned by the city. I'm checking to see if they're interested in purchasing my adjacent property.

I also put it on Craigslist. Figure I'll give it a few weeks and see if I get any bites.

Thanks again!

Chris Sweeney · Answer

I have some land and like George mentioned it's a SLOW process.  I have 2 lots that are about 2 acres in East Texas at 50% of assessed value and no dice.  Part of the problem is the difficulty in getting construction loans as well.  I have a few small lots in CA and no luck with the either.

Like they have mentioned go to Realtor.com and search land listings in that area and find some agents that specialize in it to give you a value/market analysis.

George P. · Answer

Small lots are hard to sell. You gonna need to find someone who will build on it or buy hoping the value will increase (like your father did). 
Find a Realtor who knows raw land. Not every Realtor will qualify. Be prepared to wait a long time. I just looked thru local listing for raw land (Maryland) - lots of lots and DOM is above 6 months with several price drops along the line.

Chris Martin · Answer

Yes, 10% (or a lot more) is normal. In some areas, as detailed in this BP post, land is worthless.  But you only need one buyer... and the best bets are the neighbors. If they don't buy, you could always list with a realtor. Before doing that, you may want to seek out an active builder... and strike a deal. Like front hiom the land for no charge and you get paid when the builder sells to the end buyer.

Ryan B. · Answer

I agree with the idea of trying to sell it to a neighbor.

I just bought an old bank that had been turned into a rental house.  The lot the bank is on is only as wide as the building so there was almost no yard.   While doing some painting, the neighbor comes over and offers to sell me the empty lot next to my building.  Ended up getting the lot for $2,000 and now my rental property has a huge yard.

Josh Ness · Answer

A third of an acre. No oil. :(

Flier idea is good! Is it normal to see people who want to divest themselves quickly of unwanted property like this to list at something like 10% below appraisal?

Chris Martin · Answer

Size? If a residential lot, offer it to the neighbors or others in the neighborhood first. Simple one page flier... you can leave in their mailboxes. If over 5 acres, tell them your father said it has oil under it. If it really has oil, sell it to Exxon.