Owning land may be the most exciting investment you ever make. Though this does not mean that your land will always be the best investment. Several factors such as your changing priorities, new opportunities, and the status of the real estate market may persuade you to think twice about selling your land. Below, these signs and a few others are discussed to provide you with more information regarding when exactly selling your current land is a good decision.
1. Your Needs Have Changed
Nothing beats the feeling of owning a land property. After all it’s new, exciting, and tailored towards your current status in life when you first bought it. However, odds are that this property, whether it is your first time owning one while approaching retirement, will not always fit your wants and needs. When you are fresh out of college with no kids, you and your partner may decide that a simple and small property is perfect for you. Though, as kids and pets enter your lives you both may soon feel like your priorities have changed.
2. A New Opportunity Has Opened Its Doors
Another sign you may be ready to sell your land is if a new opportunity has come. You may have secured a new opportunity that comes with a higher profit, or you might be on the other end of your life and debating retirement. If you did score a new opportunity then you may be able to sign on acquiring a new property that you always wanted, one with bigger land area and access to more amenities. If you are debating retirement, you may be debating downsizing as well. Retirement may coincide with a lower income, or simply less need for such a large property.
3. Your Plans for the Property Never Materialized
When you first searched for land for sale and purchased the property you currently own you may have had great ideas for how to make it profitable. However, these ideas don’t always materialize, and that is nothing to be ashamed of. When life hits and plans don’t work out sometimes the best thing you can do is move on. Therefore, if you had plans for a property that never materialized it may be best to think about selling your land and starting fresh.
4. The Real Estate Market is Hot
The real estate market fluctuates constantly, and right now might be a ‘hot’ time for real estate in your area. If land properties have been appreciating fast for some time in your area, it may be the perfect time for you to sell your land. If you do realize that your land is valued well above what you originally paid for it, you might want to think about selling it quickly. Asking your realtor what you can do to ensure you sell land fast is a great way to increase the likelihood that you sell while the market is ‘hot’.
5. You Need to Cut Your Losses
If you have had your land property for five years and the real estate market in your area has been positive you should be able to at least receive a slight positive return on investment. Otherwise, if the real estate market in your area has been failing for the past five years, you may want to sell your property to stop your losses. Either way, after sitting on it for five years it is a good idea to check out the real estate market in your area and see whether it is rising or falling. A little research may lead you to realize you should sell your land soon.
Ultimately it is Your Choice
Selling a land that you own can be a difficult task. However, if the market is rising or your needs have changed you might be forced to debate doing just that. The good news is that the choice is always yours, and you don’t have to do anything you are not comfortable with. You should always make the decision that is best for you and your family.
Skylar Ross is a writer for Land.us who specializes in topics related to land management, property investment, and real estate. He focuses on helping current and prospective landowners care for their land, discover investment opportunities, and be successful in land brokerage deals.
