Prescott Real Estate- Vacant Land Market Conditions
January 14th, 2009 categories: Market Update, Prescott Market Statistics, Real Estate News
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bsorption rates are a calculation of how long it will take for properties on the market to sell, if they continue selling at the current rate. The vacant land listing absorption has gone up significantly in the past few months; this is partly due to the time of year, and very few people are building new homes. If you are a seller of vacant land and absolutely do not need to sell right now, wait for a few years. If you need to sell your land sooner rather than later, read on.
Prescott Area Vacant Land Listings and Sales
| Price Range | Vacant Land Properties On The Market | Land Sales Last Month | Absorption Rate # Of Years It Will Take To Sell |
|---|---|---|---|
| $10,000 to $50,000 | 38 | 0 | 3. Years |
| $50,001 to $100,000 | 135 | 0 | 9.5 Years |
| $100,001 to $300,000 | 845 | 4 | 17.6 Years |
| $300,001 to $500,000 | 178 | 0 | 14 Years |
| $500,001 and above | 38 | 0 | 3.1 Years |
| Totals | 1,234 | 4 | 25.7 Years |
Do you need to sell vacant land now or in the near future?
It is possible, but be prepared to take less than what you had hoped for and be patient!
Below are some tips on getting your vacant land sold in less than 10 years.
Be realistic about price. If you’re trying to sell something that not many people are buying, it needs to be a great deal. Buyers need to feel like they can’t afford not to buy it.
A competitive price will be your greatest tool if you need to sell. Don’t be afraid to lower the price if the current price is not generating any activity.
Offer Seller Financing. A seller financed real estate sale is simply a real estate transaction where the owner of the property acts as the bank or lending institution. Price, terms, down-payment are all negotiated between seller and buyer just like a standard purchase agreement. The difference is that the seller receives payments instead of a bank.
Owner Financing Benefits To Sellers:
The Chance Of Finding A Buyer Increases. Offering owner financing attracts an additional set of buyers. If your property isn’t selling under conventional methods, offering owner financing is one way to stand out in a sea of listings.
Higher Sales Price. Buyers sometimes have trouble coming up with the cash needed to purchase and close the property. They may be perfectly happy to pay a little more for the land if it requires a lower down payment and lower closing costs.
Creating an income. Being the bank is a great way to boost your monthly income. Can you think of any savings account that is earning 6, 7 or 8% interest? Sellers receive monthly principal and interest payments, and if the buyer defaults, the seller gets the property back.
Tax breaks. The seller might pay less in taxes on an installment sale, reporting only the income received in each calendar year. Consult with your tax professional.
Should you have questions regarding owner financing, please contact us at 928.778.4492. Or log onto notequeen.com for more information on owner financing.
