There are a lot of reasons people own land that they want to sell now to a developer. Some purchased it thinking someday they will build their dream home, or if you have some acreage you might have wanted a hobby farm. Then there are those who had it as an investment or used it for work. Do you own landing and are wondering, “How do I sell my Minnesota land to a developer”? At Minnesota Cash Home Buyers, we’re often asked that question so we wrote this blog post to answer it for you…
First, it’s important to know what developers are looking for
A developer wants to be able to build on the property and sell it, so they’re probably looking for a property that is close to infrastructure, population growth, and services (like water, sewer, power, and roads). After all, they’ll need to connect these services to their development and they’ll want people to get to their development!
It is okay if the land is not served now, they just need to figure out how close to the utilities are to the city, township, or county is to be in those services. If they find out that the city is not bringing in the services and they are not at the property now, then the developer needs to budget those things before to see if it all makes sense to them. Developers are in the business to make money and if your land is priced right they will buy it and do what it needs to do to let them develop it.
Second, you may want to bypass the real estate agent
A lot of real estate agents tend to work with residential homeowners who are looking to buy a house to live in. If you’re wondering “How do I sell my land to a developer?” you may need to find someone who specializes in selling land to commercial businesses. (Alternatively, you might consider getting in touch with us to buy your land from you – we’re not developers but we do buy land). Not all agents understand what it takes to do this kind of transaction. We at Minnesota Cash Home Buyers are great at helping people with land that needs to be developed, finding a solution that works for everyone. We are experts at buying and selling land.
Third, be aware of zoning when wondering “How Do I Sell My Land To A Developer?”
Developers will be looking to build, which may include potentially subdividing and doing additional work on the land. They’ll want to know how your property is zoned so they can anticipate the work required to build. Of course, zoning can often be changed but zoning changes will just add to their timeline and workflow so it’s helpful for developers to know up-front how the land is zoned. Going into your local city hall and talking with the city planner will answer many of these questions. This is a process that takes time.
Fourth, be aware of the path of new construction
This one is harder for landowners to know but if you’re wondering, “How do I sell my Minnesota land to a developer?” this will be an important consideration that the developer is thinking about: If your land is not inside a city then a developer will probably want to know if the city is growing in the direction of your land. (Even if the city is not growing toward your land, that’s okay but developers will want to know). You don’t have to know this answer yourself but if you do, that will be helpful to developers.
Its a very different thing selling land in outstate Minnesota vs in the metro area of Minneapolis St Paul. For one thing, outstate development can be a bit more risking but for the land building contractor, less investment on their side. In the metro area, the quantity of land is going to be smaller than might even just being lots that are for sale. A developer will buy either depending on their business plan.
Selling raw land yourself in Minneapolis St Paul can be challenging because it’s a very different kind of buyer. It’s not like selling a house, where you can list it on the retail market and have an offer in a couple of days. But if you’re wondering, how do I sell my land to a developer, then these 4 tips will help you.