How to Sell Land in Oklahoma
The demands of selling land in a changing real estate market are high, even more so when you do not have a proper strategy in place. The following content will go over how to sell land by owner, with a real estate agent, and with an auctioneer. Before we discuss land selling options, we need to understand the difference between residential property versus land.
Land Sales vs. Residential Sales
While there are a few areas for overlap, land sales and residential sales do have distinct differences. One of the main differences is your buyers and their mindset. For homebuyers, most are looking for a move-in-ready home. This means that finding a home is all about timing and convenience. On the other hand, land buyers are more project-based and focus on ways to use the land.
One thing you cannot alter in both land sales and residential sales is location. The location has a significant impact on the value of any home or plot of land. A few questions to ask yourself when buying land are:
- How is this land zoned?
- Are there any environmental problems?
- How are the soil and productivity?
- What is the highest and best use?
When you consider real estate auctions in Oklahoma or any location, the land market and the residential market tend to differ in their expectations and needs. That is why it is important to understand the difference between land sales and residential sales.
Prepare Land for Sale
The first step in preparing your land for sale is to know your buyer profile. Once you start to think like a buyer you can better plan for what they will look for in your property. One of the requirements when selling land is having all the proper documentation. Below are a few documents you’ll need:
A purchase agreement
- This contract is used to outline the terms and conditions between a buyer and a seller.
- You may need to disclose any defects on the land. Otherwise, you could be held liable for withholding that information.
- The deed brings you one step closer to becoming finalized. This legal document transfers ownership from the seller to the buyer.
- A closing statement lists fees associated with closing the sale. This includes tax and insurance.
There are ways you can speed up the land selling process. When you have the proper documents, listings, and details needed for your potential buyers you can have a better chance at customizing your information and selling your land faster.
Pricing can be one of the most challenging steps when selling your land, but there are certain strategies you can implement to maximize the sale price of your land. Find a reliable and experienced real estate agent that specializes in land sales to help you value the land. You may be wondering, "How do I find the value of my land?" When pricing land in Oklahoma, the value can vary greatly by such factors as location, whether the land can be used for commercial or residential, use if mineral rights exist, water rights, distance to other amenities such as schools, shopping, and productivity of the land.
Once you’ve gotten the valuation of your property you can then begin listing. When you put your first listing out in the market, it’s important to make a good first impression and take full advantage of the initial offering period. If you lose leverage after the initial offering period, then you’ll enter a price reductions period.
Various sellers have made the mistake of overpricing their land and end up lost amongst other sellers or losing the interest of potential buyers. The need for accurate pricing is more important than ever, especially with the changing market. Pricing your land ultimately requires an understanding of the land market and the needs of your potential buyers.
Selling Land by Owner
There are some people that have successfully sold land on their own, but most of those people have worked in the real estate industry in the past and have a wealth of knowledge. The average person trying to sell land by owner will almost always find themselves facing a series of obstacles that can cost them far more money than what they had hoped to save. For example:
- They might not have the proper research or strategy needed.
- They lack objectivity when it comes to how they view their land.
- They have no sales or marketing expertise.
When selling land, the real estate agent will essentially do all the research and paperwork from strategy to the sale. If you are considering selling land by owner, then you will need to conduct most if not all of the proper research in a real estate transaction.
The traditional process of selling land is time-consuming and it can be overwhelming for first-time sellers to conduct a sale. Common mistakes that sellers make during the selling process are:
Not having the resources to do research and analysis of the market.
Under or over-pricing their land.
Struggling with preparing the land for potential buyers.
Coordinating meeting the buyers and conducting showings of the property.
One of the main advantages that sellers enjoy about selling land by owner is that they don’t have to pay commission to a real estate agent. While this is appealing if a seller is not well-versed in the real estate industry there are a number of mistakes waiting to be made. Not having a real estate agent can ultimately limit sellers from maximizing their profit.
Before You Sell Your Land
Consider the disadvantages mentioned above before you decide to sell land by the owner. In the end, it is beneficial to have a real estate agent by your side. Their extensive knowledge in the field will help you navigate the complex process of selling your land.
Selling Land by Real Estate Agent
Now that we’ve addressed that you don’t need a real estate agent to sell land, let’s take a look at what it’d be like working with one. Real estate agents that specialize in land sales have a deeper understanding of how the market operates and because of this, many landowners decide to take this route.
Selling land is more than just a simple transaction and it’s important to find a real estate agent that is experienced in your type of situation.
How Fees Work
So, how do Oklahoma real estate agent fees work? Well, a common land sale requires two real estate agents. One agent is designated for the seller and the other for the buyer. As with any other real estate agent, these two help guide both parties through the selling process. Once the closing statement is finalized, the agents are then paid a percentage of the price.
Who Pays Real Estate Agent Fees in Oklahoma?
Land sellers are most often responsible for paying real estate agent fees for their agents and depending on the situation, the buyers' agents. This money will come from the proceeds of the land sale.
Selling Land by Real Estate Agent Pros
- Less likely to deal with the paperwork and potential errors/mistakes.
- Have an expert on your side to help understand market trends.
- Do not have to worry about conducting the negotiation process by yourself.
Oklahoma Land Auctions
Auctions are one of the best methods for getting top dollar prices while still having authority over your selling conditions. Oklahoma land auctions, like many other auctions, give you more opportunities to get your property in front of the public. The timeframe of an auction is more accelerated and definite than if you were to sell land through a traditional for sale listing or on your own. This can be beneficial for landowners that are looking for a quick sale and to maximize profit. Auctions eliminate the uncertainty of selling your property and are exciting for both buyers and sellers.
How to Sell Land at Auction
Compared to the traditional sales process, auctions create a sense of urgency and involve competitive bidding among buyers. The intention of selling land through auctions is to have a true market price for your land. Here’s what you can expect if you decide to sell land by auction:
- Buyers are prepared to buy the property.
- Competitive bidding creates a sense of urgency.
- Maximize the exposure of your property.
- Specific time and date for selling your property.
- Buyers get an equal opportunity to bid.
- Conducted in a public setting.
- Buyer has control over bids and what they want to buy.
- Reduce the negotiation process/time.
Why Sell Land by Auction
- Buyers that attend auctions are more likely to commit to purchasing your property.
- An accelerated time frame is beneficial for closing a deal quickly.
- Buyers are given an equal opportunity to bid and this encourages competitive bidding even more.
- Auctions eliminate the frustration of negotiating and both the seller and buyer don’t have to waste time or valuable resources.
Why Use Wiggins Auctioneers to Sell Land
Wiggins Auctioneers, LLC is a family-owned and operated company. Our mission is to be the leader in auction technology and continue providing our clients with the same dependable service we have provided since 1963. At Wiggins, we can help you navigate the process of using an auction to sell your land. Our experts have conducted over 5,500 successful auctions, including farm, ranch, and recreational land; residential, investment, and commercial properties; mineral interest; and farm equipment. We offer both auction and traditional listings based upon sellers' wants and needs or specific and unique situations. If you are considering selling your land, visit our “Sellers” page to find out more about our process and what you can expect when you work with us!