Do you have a property that you want to sell, but don’t want to go through the hassle (and expense) of using a realtor? Selling land can be a bit trickier than selling a traditional home, but it is definitely possible to do it on your own. With a little bit of effort and some helpful tips, you can successfully sell your vacant lot or land without having to pay a real estate commission.
The first step is to find out who your potential buyers might be. Are you selling rural land that could be used for hunting or fishing? If so, there are likely many outdoor enthusiasts who would be interested in purchasing it. You can also look for people who might want to build a home on your property or use it for other purposes such as farming or ranching.
Once you have an idea of who your potential buyers might be, you need to price your property appropriately. Take into account the size of the lot, its location, and any other features that might make it appealing to buyers. You can search online to see what similar properties in the area are selling for, and use that information to help you come up with a fair asking price.
Table of Contents
• What Is A Realtor
• How To Market Your Property
• Tips For Selling Land By Owner
➥Do Your Research
➥Find Out Your Potential Buyers
➥Price Your Property Appropriately
➥Market Your Property Effectively
➥Be Prepared To Answer Questions
• Pricing Your Property
• Paperwork For Selling Land By Owner
• Colorado Capital Gains Tax Rate
• Colorado Capital Gain Exclusion
• Sell Your Land Fast
• Are You Planning To Sell Your Property Now
What Is A Realtor?
A realtor is a professional who helps people buy and sell the property. Realtors are licensed by the state in which they practice, and must adhere to a strict code of ethics. When you work with a realtor, you can be confident that you are working with someone who is knowledgeable about the process of buying and selling land, and who will have your best interests in mind.
Realtors have access to the Multiple Listing Service (MLS), which is a database of properties for sale in your area. This allows them to market your property to a wide range of potential buyers and can help you get the best possible price for your land.
The average commission of a realtor is 6%. However, the commission is negotiable, and you may be able to get a lower rate if you are willing to pay for some of the marketing expenses yourself.
If you decide not to use a realtor, there are still several things you can do to market your property and find potential buyers.
How To Market Your Property?
How to market your property will largely depend on who your potential buyers are. If you’re selling to hunters or fishermen, placing ads in outdoor magazines or online forums is a good way to reach them. You can also put up signs on the property itself or in nearby towns. For other types of buyers, such as those interested in building a home, you can market your property through real estate websites or by working with a local builder.
Once you’ve found a buyer for your land, it’s time to finalize the sale. This means drawing up a sales contract and making sure that all of the necessary paperwork is in order. Once everything is signed and finalized, you’ll be able to hand over the keys (or deed) to your new landowner and collect your payment.
Tips For Selling Land By Owner
Selling land by owner can be a challenging but rewarding experience. By following these tips, you can increase your chances of finding a buyer and successfully completing the sale:
1. Do Your Research.
Familiarize yourself with the process of selling land by the owner and learn about the different steps involved. This will help you avoid any surprises along the way.
2. Find Out Who Your Potential Buyers Might Be.
Knowing your target market will help you choose the best way to market your property.
3. Price Your Property Appropriately.
Make sure to take into account factors such as the size of the lot, its location, and any special features it might have.
4. Market Your Property Effectively.
Consider using multiple marketing channels to reach the widest audience possible.
5. Be Prepared To Answer Questions About The Property.
Potential buyers will want to know about things like zoning regulations, easements, and utility availability.
Pricing Your Property
When setting a price for your land, it’s important to take into account factors such as:
- The size of the lot.
- Its location.
- The amount of work that needs to be done to make it buildable.
- Any special features it might have.
- The current market conditions in your area.
Paperwork For Selling Land By Owner In Colorado
documents needed such as:
- The land contract
- A Bill of Sale
- A Warranty Deed
- Title insurance policy
- A property survey
- Any easements or right-of-ways
- Homeowners association documents (if applicable)
- Any other relevant paperwork
Colorado Capital Gains Tax Rate
If you owned the property for less than a year, you’ll pay short-term capital gains tax at your ordinary income tax rate.
If you owned the property for more than a year, you’ll pay long-term capital gains tax. The long-term capital gains tax rate in Colorado is 0%, 15%, or 20%, depending on your tax bracket.
You may owe state and local taxes on the sale of your land. The amount of tax you pay will depend on several factors, including the selling price of the property, your profit from the sale, and whether you’re considered a full-time or part-time resident of Colorado.
Part-time residents of Colorado who sell land may owe state taxes on their capital gains. The tax rate for part-time residents is 4.63%.
If you’re a full-time resident of Colorado and you sell land that’s considered your primary residence, you may be eligible for an exemption on up to $39,000 of your capital gains.
Colorado Capital Gain Exclusion
To qualify for the exemption, you must have owned the property for at least two years and lived in it as your primary residence for at least one year prior to the sale.
You’ll also need to file a Colorado Affidavit of Domicile to claim the exemption.
If you don’t meet the requirements for the primary residence exemption, you’ll owe state taxes on your capital gains at a rate of 4.63%.
Sell Your Land Fast
Are you looking for ways to get rid of your property? Selling land by owner can be a time-consuming process, but there are a few things you can do to speed up the sale.
- Offer a motivated seller discount.
- Offer owner financing.
- Consider using a land contract.
- Advertise your property online. (Zillow, Trulia, and Craigslist)
- Put up a For Sale sign.
Are You Planning To Sell Your Property Now?
Colorado Cash Buyers is a real estate investment company that specializes in purchasing land and properties. We are interested in buying your land fast, and we can close on the sale quickly – often within a week or two.
We are cash buyers, so you won’t have to worry about going through the hassle of getting a loan. And, we will take care of all of the paperwork for you.
If you’re interested in selling your property, please contact us today for a free, no-obligation offer.