Auctions Reward Buyers and Sellers of Vacant LandApril 19th, 2007 by PA - Bloger
While residential and commercial property real estate auction trends continue growing, the flexibility inherent in auctioning vacant land offers great deals for buyers and quick liquidity for sellers using auctions.
The stigma of distressed property sales for sellers or risky “rip-off ranchos” haunts the idea of buying vacant land at auction but with a few savvy steps, buyers can shop for vacant land auction deals with confidence. According to Will McLemore of McLemore Auction Company, LLC, in Nashville Tennessee, “ Real estate auctioneers can do more for sellers of a tract or tracts of subdivided land than they can for any other type of property. Auctioneers can market the entire property to purchasers interested in buying all the acreage and they can market individual parcels of the entire tract to buyers who either can’t or aren’t interested in buying the whole thing. Real estate agents can market both ways, but they face a challenge in deciding how to deal with overlapping offers. Auctioneers don’t have this problem. They can conduct an auction that allows all bidders, even bidders for overlapping combinations of tracts, to compete to purchase the assets for sale that day. “
Buyers can bid on parcel sizes fitting their budgets and sellers can quickly complete sales for tracts with multiple buyers.
“Property auction [land] has great appeal to sellers. Many non distressed sellers hire auction companies to conduct sales to capitalize on the fact that they can sell the entire property in a single day and yet engage both large and small tract buyers.” according to McLemore.
Auctioneers usually advise buyers to do the following: due diligence upfront: Visit the property. Do additional research even if you make a trip to see the land. Local title companies and the county courthouse assessor’s office may give you ideas about area land values. Call the local government, county, town or both. Talk to the zoning, building and land use regulation departments to make sure your plans for the land fit the permitted uses. Ask about special regulations that might apply to the land, like subdivision, septic tank, water and sewer connection, setbacks, and equipment storage rules to avoid surprises after your purchase. Find out what type of deed you will get and make sure you understand the details about utility access, road access, mineral rights, water rights and all of those other pesky details that can haunt you later.
Buyers should know these details before buying any vacant land no matter which method used. The best results go to those that do their homework when shopping for vacant land at auction. To avoid buying that “River Front Property” that’s really swamp land or that “Mountain Retreat” with access only by parachute, auctioneers advise clients to shop wisely.
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