Selling VACANT LAND in Georgia
Hey everyone, welcome back to another one of our videos!
This is Brad from NorthGALandBuyers.com and Arbor View Properties.
At North GA Land Buyers, we are an investor developer that purchases land throughout the state of Georgia, not just in the North Georgia area where we are located. If you have a property you’re considering selling, we would be happy to make you an offer.
Selling RAW land in Georgia
Vacant land typically refers to land that does not have any structures on it. While it may not be “vacant” in the sense that no one lives there, it is generally considered raw land. Another term used for this type of property is “raw land.”
If you’re selling a piece of land, as I mentioned in some of my other videos, you have a few different options. You can list it yourself, put a “For Sale” sign in front, or advertise it on platforms like Facebook Marketplace or in local Facebook groups. Alternatively, you can work with a broker or real estate agent. I am a licensed real estate agent in Georgia and have been for several years, but I primarily focus on investing.
Another option is to sell the land directly to an investor or developer.
Selling land often involves a more complex process than selling a typical home. Here’s a breakdown of key points:
- Extended Due Diligence: Land buyers frequently require a longer due diligence period than those buying houses.
- Viability Assessment: Buyers need time to thoroughly investigate the land’s potential and limitations.
- Essential Tests and Surveys: This due diligence often includes:
- Soil tests to determine ground composition and suitability.
- Professional surveys to accurately map property boundaries and topography.
- Permitted Uses Research: Buyers will investigate:
- Zoning regulations to understand what can and cannot be built on the land.
- Potential development possibilities based on current rules.
I’ve received several property listings from people who wanted us to make offers, and I’ve reviewed them.
Sharing A Personal Experience
One particular case stands out. A few years ago, I helped a friend of mine—my HVAC technician—purchase a property. It has probably been about three or four years since then. He bought this property from a couple who owned a larger piece of land.
Over the years, they subdivided the land into lots and sold them individually. They had also placed a couple of mobile homes on some of the lots and were renting them out. The couple was going through a divorce and needed to liquidate their assets. They decided to sell the remaining homes on their larger property, which they had purchased long ago. I assisted my friend in negotiating a deal for one of these parcels of land. He ultimately bought the house and completely renovated it, transforming it into a really attractive property. Interestingly, the house was located directly across the street from his brother-in-law, which added a nice touch to the purchase.
They had always talked about buying the lot next to them, and we tried to include it in the deal upfront. However, she said, “No, I’m not interested in selling that parcel of land right now. I’ve got a builder who wants to buy it.”
As I looked at the land and its topography, I didn’t examine any surveys or details. I noticed that there were two creeks running through the property. The shape of the land was unusual, and there was really only one tiny access point. I thought to myself, “No builder is going to buy that lot. What is she talking about?” So, we suggested, “How about we give you an option on this?” She agreed, saying, “Sure, no problem.” I worked out a deal for my friend, where he essentially gave her $100 in cash. We signed a first right of refusal agreement, not an option agreement as I initially thought. This agreement stated that if she ever wanted to sell the land, she had to come to him first. Eventually, she decided to sell it and mentioned she wanted $100,000 for the lot. This parcel was only about two acres—hardly even two acres. In that area, land typically sells for anywhere from $25,000 to $35,000 per acre, depending on various factors.
The property is just under two acres, and the best-case scenario for its value is probably around $70,000. However, the owner wants to sell it for $100,000. The potential buyer has the first right of refusal. She approaches him and says, “I want to sell this land, and I’m giving you the option to make an offer.” He offers her either $20,000 or $25,000, but she responds, “No way, I’m not accepting anything less than $100,000 for this land.” He insists that no one will pay $100,000 for it and thinks she’s being unreasonable.
After that, she decides to list the property with a real estate agent. The agent tries to sell it, but there are no interested buyers. Eventually, the agent arranges for a survey of the property. If you know anything about construction, building, and development, you understand that when there’s a water feature like a creek or stream, there’s typically a buffer zone on either side. In Georgia, many municipalities have adopted a 75-foot undisturbed buffer on either side of a stream. This means that from the top bank of the stream, there is a 75-foot area where no impervious structures—such as driveways, houses, or barns—can be built. This buffer zone totals 150 feet, plus the width of the stream itself.
This particular lot was shaped like a pie and featured two creeks that connected in the middle. As a result, the entire bottom of the property was unusable due to the stream buffer regulations. Essentially, the only accessible part of the property was a small sliver at the top. The stream buffer on one side extended beyond the property line, while the buffer on the other side cut into the lot, creating a Y shape. To reach this small usable portion, you would have to cross the creek and navigate a steep ravine, making it impractical as a property for development. My friend was interested in buying it simply to expand his yard, as it was adjacent to his own property. He said, “Hey, I’ll buy it from you for $25,000; I just want a bigger yard. I want to ride my four-wheeler there and take the dogs to play in the creek. That’s all I want it for, since it’s not buildable.” However, the seller responded, “No, no, no, you guys are crazy,” and dismissed him. “Okay, sure, whatever,” my friend replied.
She then decides to find another real estate agent, believing that the reason her property didn’t sell the first time was because her initial agent was ineffective. She lists the property for $100,000, but no one shows interest in buying it. Eventually, my buddy calls her back and says, “Hey, my offer still stands.” She responds, “You’re just making me a lowball offer like all the other potential buyers.” He explains, “Look, you can’t build anything on this property. The only thing this land is good for is to look at. With the two ravines on the site, no one is going to want to create a driveway that goes down into a ravine. You would have to install a large culvert pipe, and there’s a significant amount of grading work needed just to reach the other side of the creek. Plus, once you get across the creek, there’s no sewage system in the area. The land over there isn’t even large enough to accommodate both a septic system and a house. The county would never allow that. Essentially, you have a worthless parcel of land.”
They had gradually sold off various pieces of land over the years, including houses and mobile homes, and now this was basically the only lot left from the larger parcel they originally purchased.
To this day, I believe she is on her third real estate agent trying to sell this property. I’m surprised that none of these agents advised her otherwise. If I were in their position, I would have told her at the start, “Look, ma’am, no one is going to buy this lot. We can list it for sale, but I’m not going to waste my time and effort on a property that has no real value other than being something to look at.” Additionally, the price she wants for it is outrageous. I can go down the street and buy a flat, improved lot with water and electric access right at the road for $35,000 an acre. Why would I pay her $50,000 an acre for something I can’t even build on? It simply doesn’t make sense. So, that’s my story for today.
There are many factors to consider when selling vacant land that affect what can be done with it. If you simply want a piece of property that looks nice and serves as a pleasant space, the specifics may not seem to matter much. However, ultimately, these factors will influence the property’s price and value, determining what it’s worth and what can be done with it.
Timberland
As of 2024, the lumber market indicates that it’s not in the best interest of timber companies to harvest timber right now. They currently have enough in stockpiles, so there’s little incentive for them to purchase new timberland. While I am not an expert in the timber industry, I’ve heard from developers who have cleared land and attempted to sell timber that timber companies often respond with disinterest. They might say something like, “I don’t want your land. I don’t need your timber. I’ll give you a dollar for it,” mainly because they only want it for pulpwood. There just isn’t much demand.
I had a few trees on my property when I cleared it, and we ended up giving them away to a guy who lived a few miles away. He said, “I can come take them for pulpwood, but I won’t pay you for it. If you stack them up by the road, I can use my crane to grab them without even getting out of my truck, and then they’re mine for free. Otherwise, they’re of no use to me.”
Factors To Consider
There are several factors that can affect the value of your land, such as access to water, sewer, and utilities. Additionally, the topography will influence its value as well. All of these aspects will impact how you can sell the vacant land and how long it may take to sell it.
Remember, unlike selling a single-family house, the buyer pool for vacant land is much smaller. If you have only a tiny parcel of land, developers may not even be interested. In that case, your options are limited.
If you’re considering a piece of land, you might be thinking about it from the perspective of a home builder. A builder would look at the property to either construct a spec home to resell or to create a custom home for a client. They will evaluate several factors, including the topography and soil quality to determine if it’s possible to install a septic system or whether the land is even buildable at all. Additionally, access to utilities and any front-end access requirements will be important considerations. If the property is located off an easement, it may be less appealing to potential buyers.
All of these factors influence the sale of the land, including its value and the time it may take to sell. Keep in mind that the buyer pool for land is quite small, and you are often waiting for just the right person to show interest. As you narrow down the potential buyer segments, the pool continues to shrink, ultimately leading to price becoming a critical factor. Therefore, it’s essential to research what similar properties have actually sold for, rather than relying on current listings. Look at the final sale prices of comparable land to make a more informed decision.
Looking At Comps
I’ve been in this business for a long time, and I’ve seen many properties that have been on the market for years without selling, compared to those that have actually sold. It’s essential to look at sold comparable properties.
Typically, we analyze the average price per acre for both improved and unimproved land. If you have 20 properties around you for sale within a certain price range, but only three have sold in the last two years, I focus on those sold properties. I examine the price per acre of those sales to determine how much I could pay for yours. Ultimately, anyone can list a property at any price, but that doesn’t guarantee it will sell, right?
I could list my house for $10 million, but it’s not worth that much. While there may be an unlikely chance that someone would pay that amount, it’s more probable that I would receive offers significantly lower than that, which would only waste my time.
When selling land, you need to consider how quickly you want to sell it and whether you want to waste anyone’s time. This decision is ultimately up to you. I hope this information helps you.
Let’s Connect
If you’re interested in receiving an offer for a piece of land, I would be happy to review it and provide you with an offer. You can visit northgalandbuyers.com and fill out the form there.