Selling LAND versus selling a house in Georgia
Hey everyone, this is Brad from NorthGALandBuyers.com and Arbor View Properties.
I’m going to discuss the differences between selling land and selling a house.
Selling land and selling a house are two very distinct processes. I have been a real estate investor and agent for several years and hold my license with OneSource Real Estate in Woodstock, Georgia. As a licensed agent in Georgia, I am also an active investor and developer. We purchase single-family homes, commercial properties, multifamily units, and land. Over the years, we’ve tackled it all.
Selling A House
Selling a house is relatively straightforward. The property is there, and it is what it is. Sometimes, there might be potential to tear down the house and build a larger one, or to convert it into a commercial property. However, in general, when you’re selling a house, you are offering a single-family residence that someone or a family can move into. That’s the main idea. The buyer has various options: they can choose to expand the house, keep it as it is, or remodel it. There are many possibilities for a house, but the process of selling one is quite clear. Buyers know what to expect when they purchase a home.
Selling Land
Selling land involves a different set of considerations because there are many possibilities depending on the type of land.
It’s important to understand zoning regulations and what the county or municipality allows you to do with the land. For instance, is it agricultural land? Is it only suitable for hunting? Or is it timber land meant for harvesting trees?
As of 2024, some people may think they can sell land for timber, but timber companies are not actively purchasing trees right now due to an oversupply. These companies currently have plenty of trees to harvest and are unlikely to offer high prices. Timber prices will dictate when these companies choose to conduct harvests, which is a specialized area of business that I won’t delve into in this video.
Land To Develop
When considering whether this land can be used for residential purposes, there are several important factors to keep in mind.
Access To Utilities
First, access to utilities is crucial. This includes electricity and potentially natural gas. If natural gas is not available, having access to electricity is essential. Connecting power to the property can be quite expensive, especially depending on how far away it is from a transformer or main line. The cost can vary significantly based on the terrain that needs to be navigated.
Water Access
Next, consider the water supply. Is there a municipal water source nearby, or is it necessary to drill a well? Drilling a well can be unpredictable; for example, your neighbor might find water at 200 feet, while you may need to drill down to 600 feet to reach water. Therefore, determining access to water is vital, as anyone living on the property will need a reliable water source.
Sewage System
In addition to electricity and water, sewage treatment is another critical consideration.
This could involve setting up an on-site sewage treatment system, commonly known as a septic system, or it might mean connecting to a nearby municipal sewage system. All of these services come with costs and require state approval. If you’re opting for an on-site sewage treatment system, you will need to obtain approval from the state of Georgia.
The requirement for installing a septic system in the state of Georgia depends on when your property was originally platted. Current regulations stipulate that you need approximately one acre of gross usable area for a septic system installation. If your property lacks access to public sewer or water, and it is less than one acre in size, you may face challenges when trying to sell it for residential development, as you might not be able to install a septic system based on when it was platted. These rules have changed over the years. Previously, it was possible to install a septic system on a half-acre lot, but the regulations now generally require around one acre—specifically about 0.92 acres of gross usable area. It is important to note that not all parts of your property count towards this calculation. For example, if there is a lake or pond on your property, that area would not be included in the gross usable area assessment.
In order to install a septic system, you must maintain a specific distance from water sources. This applies to springs, creeks, streams, lakes, and other bodies of water. Typically, the required distance from springs is 100 feet. Additionally, if there is an existing well on the property, you cannot place a septic system within a 150-foot radius of that well. In my own experience, my property had a well, but where we planned to build our house and install the septic system fell within that 150-foot radius. Unfortunately, this meant that I had to abandon the well, which cost me $4,000.
Proper abandonment must be conducted by an authorized party, following a specific process, and they must provide a letter certifying that the well was abandoned correctly. If you are considering selling a property, it’s important to keep in mind factors like access to water and utilities, including public sewer connections.
For example, when I built my personal house, there was a public sewer located a bit down the road, but connecting to it was cost-prohibitive for us. Therefore, we decided to install a septic system instead. The estimate we received from an engineer indicated that connecting to the sewer would cost about $60,000 for a pipe extension and a manhole. In contrast, the septic system would only cost around $8,000. Given the significant difference in price, I opted for the $8,000 option rather than the $60,000 one for the sewer connection. It’s clear that these decisions often come down to costs.
Topography
When considering selling your land, it’s important to think about the topography. For instance, if you have a piece of land that is uneven or hilly, you need to assess its potential uses. While it might have a beautiful view, if no one can build on it, its value may decrease. Is it suitable for hunting? Even if you’re not a hunter yourself, you will need an experienced hunter to evaluate whether the land is good for this purpose. There could be wildlife present, or there may not be any at all. Therefore, it’s essential to have a proper assessment done. Lastly, if there’s timber on the land, it’s wise to consult a timber expert to determine whether it is viable for timber production.
Zoning
Another important aspect is how the land is currently zoned, as this will affect its usability and market value.
Improved land generally sells for more than unimproved land because improving a property entails additional costs. For instance, grading the land and removing trees can be expensive, and there may also be drainage issues to address. If there are creeks or streams on the property, that can complicate matters further. The EPA’s regulations regarding these waterways can significantly impact what you can do with the land.
A recent Supreme Court case limited the EPA’s authority in defining navigable waters, which is important to know. If your creek or stream falls under their jurisdiction, you will face additional regulatory hurdles.
For example, a friend of mine built a house near a creek and wanted to install a culvert pipe in front of it. However, he encountered a lengthy approval process with the EPA that took six months. He also had to hire a third-party civil engineering firm to conduct necessary studies and create specifications, which added to his expenses. It was more cost-effective for him to build a bridge over the creek than to install a culvert pipe. He successfully constructed a bridge, and as long as he stayed a certain distance back from the creek, he was able to avoid involving the EPA and could proceed with the county’s environmental regulations instead. However, it still ended up being quite expensive. He spent $50,000 to build the bridge, which provided access to the back portion of his property where he intended to build his house. He preferred this location because the front of the property was a low-lying area, and he didn’t want to build there. Ultimately, undertaking such projects can be quite costly.
When it comes to selling property, it’s important to consider the differences between selling land and selling a house. Generally, selling a house is much simpler and easier than selling land.
If you’re in the process of selling land, I have another video that outlines three options for you:
1. You can sell it on your own.
3. You can sell it to an investor or developer, like me.
As an agent and an investor/developer, I’m here to help. If you’re interested in selling your property and want to learn more about its value, what we might offer, or your options moving forward, I’d be happy to discuss it with you.
You can visit NorthGALandBuyers.com or click the link in the description below to fill out the form on our site. We would love to explore this with you. Thank you for watching this video today. I hope you found it helpful.