Pricing Your Land Correctly is Essential For Success

Most people consider a tract of land that they own to be one of their biggest assets. That means you will want to be diligent in how you set the perfect price for your land. Listing your land too low could mean you lose out on making money. Too high and buyers may just move on to the next listing.

Finding the sweet spot is a process. It’s a good idea to talk with land specialists; they will be helpful in determining the value of your property, as well as clue you in on land buying trends, which might influence your pricing.

Factors That Influence Land Value

The number one factor to determining the price of land right now is whether it generates income or not. That seems to be driving most the pricing and most the lending on it. Number two is the location of the land. A piece of property within an hour of Chicago – if it’s all timber – might sell for $4,500 to $5,000 an acre, and a piece of property in Hope County, Illinois, which is in Southern Illinois, will sell for maybe $2,000 an acre.

Demand is the driving force behind this price difference, where the northern area will see hundreds of buyers, the southern counterpart might only get a handful. The location of a property plays a crucial role in determining its value and desirability and may warrant a higher price.

However, location and whether or not the land generates income are not the only two factors in determining the price of a property. Improvements on the land can impact price, whereas adding a building or a house might mean it’s more valuable. In addition, the general condition of the land is another important aspect of pricing. For example, timberland that has been harvested will likely sell for 40 percent less than land that hasn’t been harvested.

The Time to Sell Is Now

Settling on a price, in general, can be quite difficult. It’s equally important to know when to sell, and according to many land agents, the time is now.

Recreational land is always strong in August, all the way through to the following March or April. Right now, sellers are going to maximize their sales price by selling their recreational land.

While farmland prices might have topped out, recreational land sales remain hot.

Advice for Sellers

Some good advice for individuals selling their land, is to hire a land agent that’s knowledgeable. It’s important sellers get the help they need and find the right person for the job. Mossy Oak Properties would be a wise choice, primarily because of their dedication and experience.

Mossy Oak Properties have a training program called the Certified Land Specialists training program, and they are the only ones in the industry that offer the program. It’s a pretty intense training course everyone has to go through to be certified at Mossy Oak Properties.

Article contribution by Mossy Oak Properties. The Mossy Oak Properties land brokerage network was launched in 2003 and has since grown to over 100 franchised brokerages in over 30 states throughout the country.