How to Find a Suitable Parcel of Vacant Land

In today’s day and age, technology has a huge impact on how we do things. Traditionally there were only a couple ways to search and find a property, whether it was vacant land, a house or even a commercial building. The most common method was to engage a real estate agent to find the property for you. You could also find properties listed in the classified ads, or if you are old school like me, you can drive around the area you are interested in and look for properties with a for-sale sign. Better yet, knock on some doors and see if the property owner is interested in selling. All of these options are still common today, but there are new opportunities in technology drastically changing the landscape. Now buyers are starting to do their research online long before they reach out to a real estate agent or industry professional to help them. Some buyers are so sophisticated that they purchase properties sight unseen by using technology and online tools to complete all of their due diligence and research. There are a number of platforms and marketplaces online that provide really great information with tons of options available. We are going to take a deeper look into each option to provide some pros and cons of each so you can decide which would work best for you.

Working with a Real Estate Agent

As mentioned earlier, this is one of the most common and widely recognized ways to purchase real estate. There can be a lot of value in working with a real estate agent, especially if you are involved with a complex transaction and don’t have much experience. Real estate agents have been trained and are licensed to ensure they can guide you through the transaction from start to finish. Most agents have access to a service called the MLS (Multiple Listing Service) that is specific to a geographical area and has listings, statistics and other information unavailable to the general public. There are between 600-700 different MLS chapters throughout the US, so some agents subscribe to multiple chapters to ensure they get full coverage of all markets they work in. They can set up automated searches that will notify you when a property becomes available that you might be interested in. Or if you are looking to sell, this is one of the platforms they can market the property on. They will draft the contract and walk you through all of the terms and conditions of the agreement. They can also accompany you to look at the property and provide their opinion on the value, market trends, and many other things to consider while buying.

Real estate agents usually get paid on commission only – which is traditionally paid by the seller at closing. It is important to understand that while the Seller is the one paying the commission, in reality, the buyer is paying the commission as well, it’s just built into the purchase price of the property. Buyers working without an agent can often negotiate the sale price down if there is no commission to be paid and the Seller will still net the same. With single family homes, a common commission is 6% (3% to a listing agent and 3% to a buyer’s agent). As the price of the property goes up, you might see the commission percentage go down. And conversely, as the price of the property goes down, you might see a higher commission percentage requested by an agent. With vacant land under $25,000, we see real estate commissions as high as 15% – and that is just for the selling agent commission.

In summary, here are a couple things to keep in mind if you are considering working with a real estate agent:
Commissions – Your expectation should be that you are going to pay for the assistance of an agent.
Expertise – Not all agents are the same, so be prudent in selecting the right agent if you choose to work with one.
Marketing/Exposure – Agents usually have access to the MLS and are paid to search for properties for you. Whether you are buying or selling, they can help ensure you get good exposure in the marketplace.

Classifieds

Ah Craigslist…the first highly utilized online classified ads platform. If you haven’t used Craigslist, you are probably in the minority these days. Craigslist is the most highly recognizable online classified ad platform and offers everything from real estate to classic cars to personal dating and relationships. You will find a lot of options all over the US. But unless you know where you are looking, it can often be challenging to find the right property for you. For example, if you live in Kansas City, MO and you are looking for land in Colorado, you might have to search multiple cities to find your property, such as Denver, Ft. Collins, High Rockies, etc. These geographical areas can span hundreds of miles, so it makes it a little more challenging to really focus on a specific area.

Additionally, there is no licensing or authority regulating sales on Craigslist. Craigslist does a lot to try to eliminate scams and shady posts, but the platform is primarily regulated by the community. There are many companies that post ads on Craigslist, but the majority of listings are posted by owners or small mom-and-pop type companies. If you are dealing with an individual or a company, make sure you do your due diligence and ensure you are working with someone who is trustworthy, credible, and has experience. Check our guide of the top 10 questions to ask when buying vacant land.

In summary, here are a couple things to keep in mind if you are searching for your property on Craigslist:
Private Sellers and Companies – Craigslist is utilized by both companies and individuals so you will get to see a lot of different listings from different sellers.
Look out for the Scammers – Scams on Craigslist are rampant so make sure you do your research on the other party and the property to make sure you are not getting scammed. Here is a link to some suggested ways to avoid scams on Craigslist: https://www.craigslist.org/about/scams
Location Challenges – Craigslist territories cover a lot of area so it can be challenging to narrow your search into a specific geographical area.

The Google (and other search engines)

Search for land in Google and you will likely find one of many marketplaces online that specialize only in vacant land. Here you can find individuals and companies, small to large, advertising land they have for sale. There are a few great options including Landwatch.com, LandHub.com, Landandfarm.com, and Land.com. Note these are marketplaces and have listings from many different individual owners/sellers. Outside of the marketplaces, you are likely to come across some companies’ websites as well such as Landcentral.com, and of course Landelevated.com. It’s important to note that these sites only have listings for properties owned by that specific company. They are not real estate agents and do not represent third parties. These companies, like Land Elevated, take pride in working with their customers to ensure they know exactly what they are getting themselves into. But just like everything else, no two companies are the same. We recommend you do your homework on the company, read their reviews and testimonials, and ask the tough questions. Make sure they know what they are talking about and they aren’t just trying to sell you something that isn’t right for you.

In summary, here are a couple things to keep in mind while searching for your property on Google (or any other search engine):
Google is smart! – Google has algorithms that help you with your search and will produce search results based on what you enter.
Marketplaces & Private Companies – There are going to be a lot of marketplaces returned in your search results that will offer listings from many different sellers, both companies and individuals, and there are going to some companies included in the search results as well. Do your homework.

For Sale by Owners

There are tens of thousands of property owners out there that would be willing to sell their property but have not listed it for sale. There are also thousands of property owners that don’t want to use a real estate agent wanting to list the property on their own to avoid having to pay a commission. This creates opportunity, but it’s a lot of work to source a good deal. This is how a lot of companies and real estate agents create their value, by sourcing opportunities that are hard to find and present specific challenges that are not easy to resolve. It also requires experience or expertise to navigate through the title and closing process. Real estate deals are complicated and there are a lot of legal consequences if something isn’t done correctly.

Some of the more common marketplaces like Zillow and Redfin have options for property owners to list their property on their own without a real estate agent. Craigslist and other classified sites will also have a lot of for sale by owner listings. As with all options, make sure you do your homework and ask the tough questions to ensure you are not getting into a bad deal.

In summary, here are a couple things to keep in mind if you are planning on going the for sale by owner route:
Commissions – You can oftentimes get a better deal or lower price because there are no commissions to be paid.
Experience & Expertise required – If you don’t have the experience or expertise, proceed with caution. Real estate deals can be incredibly complex, and without guidance you can get in trouble fast.
For Sale by Owner opportunities can be great deals, but they usually require a lot of work. Because of the amount of work and level or expertise required, they are not how most real estate transactions take place.

So as you continue your search, remember that you have a number of options, tools and resources available depending on your experience and the amount of time you want to invest in finding the perfect property for you. Have fun and good luck!