How long does it take to sell land?
Selling land can take some time, as it is a significant investment for most people. The amount of time it takes to sell land will vary depending on a number of factors including the list price, location, and current real estate market.
List Price
Arguably the biggest factor that can affect how long it takes to sell the land is the price. Land priced at or below market value is likely to sell faster than land that is priced above market value because every buyer is looking for a good deal. However, if the land is priced too low, it may also take longer to sell because buyers may be wary of a property that is being sold for significantly less than comparable properties in the area. The trick is figuring out what true market value is for your land. This is a lot harder to do for land since so many factors affect this number (check out other articles we’ve written that address this specifically)!
Location, Location, Location
Another important factor that affects days on market is LOCATION. Is your land less than 1 hour away from a large city with a strong economy? Is it near a vacation destination? Is it agriculture land near a farming community? If so, your land is likely to sell faster than the same piece of land in a super remote area. Buyers are willing to pay more for land in areas where they think their land purchase also serves as a good long term investment.
The Market
The current real estate market also plays a role. Although many of the flashy news headlines are related to houses… it does trickle down to the land market as well. In a seller’s market, where there are more buyers than sellers, land is likely to sell faster because buyers are competing for a limited supply of properties. In a buyer’s market, where there are more sellers than buyers, it may take longer to sell land because buyers have more options to choose from and can be more selective about the properties they are interested in.
In general it can take anywhere from weeks to several months to sell land, depending on the factors above. And truly…taking months is pretty common, so don’t get discouraged. Land is unique and takes a unique buyer.
-Jen
