How to Sell Land by Owner in Colorado?

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How to Sell Land by Owner in Colorado?

Bart Waldon

Colorado contains over 66 million acres of land with diverse geographic features spanning high elevation mountains, fertile valleys and open plains. Given the state’s stunning scenery and abundant recreation, people often purchase smaller land parcels for future retirement properties or leisure enjoyment. However, situations sometimes arise compelling owners ready to offload that gorgeous yet unused Colorado land they’ve been sitting on. Attempting to sell raw land without assistance poses numerous challenges though. This definitive guide covers key steps streamlining the do-it-yourself land sales process in Colorado while securing an optimal deal.

According to the latest USDA Colorado statistical bulletin, approximately 31% of the state’s total area, or over 45,000 square miles, consists of privately owned farms, ranches and recreational rural properties outside incorporated municipalities. This indicates a vibrant open-land real estate market exists in the state, if owners position their offerings effectively to attract serious buyer interest. Perfect parcels await future homeowners, farmers or developers; it’s up to savvy Colorado land sellers to effectively showcase available offerings.

Determine Appraisal-Based Pricing for Your Colorado Land

Achieving a successful independent DIY land sale hinge greatly on setting an appropriate listing price buyers will find attractive. Extreme over- or under-valuation will discourage potential purchasers before they view the property in person. Checking recent sales of comparable nearby properties is a smart place to start when pricing land. However, engaging a licensed appraiser provides greatest accuracy determining current fair market value based on:

  • Precise plot acreage/dimensions
  • Available utilities infrastructure
  • Property rights conveyed
  • Regional development outlook
  • Site-specific attributes like views, slope, habitats and road access that impact desirability

Expect to pay upwards of $300 for a basic appraisal or closer to $500 for extensive reports if lending requirements come into play. While not cheap, proper appraisals pay for themselves by empowering owners setting prices aligned with prevailing area market rates. This maximizes visibility and credibility for DIY land sale listings.

Create a Detailed Factsheet Highlighting Property Perks

Once confident on competitive pricing, devote effort creating an informative parcel fact sheet conveying all advantageous details warranting buyers’ attention. Emphasize unique attributes setting your Colorado land apart as not just another barren plot but rather a stunning potential-packed opportunity awaiting visionary purchasers. Tailor messaging toward the likely intended use - whether highlighting development conveniences targeting commercial builders, landscape beauty attracting outdoor enthusiasts or rich soil luring future farmers.

Compile facts regarding:

  • Convenient regional location providing easy owner access
  • Favorable topographic features like elevational views
  • Proximity to recreational sites like trails, parks,lakes or ski resorts
  • Productive subterranean mineral deposits
  • Prime zoning classifications supporting various project types
  • Easements or right-of-ways preserving accessibility
  • Encumbrances limiting or preventing certain usages
  • Availability of basic electric/sewer infrastructure

This single marketing document should compel readers visualizing everything achievable on the property spanning construction, leisure enjoyment, agriculture, resource extraction and more. Craft appealing descriptions; don’t just clinically list parcel particulars. You want potential buyers already envisioning all their planned activities occurring on the land.

Advertise Colorado Land Sale Listings Optimizing Visibility

With pricing set and marketing materials prepared, now focus efforts broadcasting availability of your independent Colorado land sale opportunities using both traditional and technology-based channels maximizing exposure.

  • List with MLS - Leverage real estate agents by sharing listings on MLS even if not contracting full brokerage representation. This gets your land on agents’ radar screens during relevant searches.
  • Classified Listings - Place classified advertisements in printed newspapers and shopper circulars covering your geographic area. These still attract older demographics.
  • Yard Signage - Install highly visible For Sale by Owner signage on the actual land borders interfacing with roadways. Capture eyeballs of those actively venturing through the area.
  • Online Directories - Post listings on leading Colorado land and raw acreage focused platforms like Lands of America and LandWatch. Hyper target audiences scanning specifically for rural investment property deals.
  • Social Media - Create social media posts highlighting land gems for sale geotagged to respective city/region pages on Facebook or Instagram. Photos truly shine attracting new audiences.

Cast the widest outreach net possible across traditional and digital channels most appropriate linking serious buyers to available land deals listed independently for sale by motivated Colorado owner-sellers.

Screen Prospective Land Buyers Thoroughly

As interest arises in your DIY Colorado land listings, take time vetting potential purchasers thoroughly before accepting offers. Guard against tying up land falling for those not demonstrating financial capability or reasonable intentions for the property. Politely ask questions regarding:

  • Prequalified financing status through reputable lending institutions or available cash reserves
  • Background regarding past completed land purchases in Colorado or other states if from out of area
  • Specific planned usage for the land following purchase
  • Timeframes for acting on development plans if disclosed
  • Affiliation with any partners or investor groups also engaged

You want to feel fully comfortable prospective buyers possess means for closing and plan responsible usage of the land aligning with your visions for it. Don’t rush into commitments with the first person flashing some cash or making big promises they may not fulfill later. Discern smart stewards valuing what your land has to offer.

Negotiate Fair Sale Terms Protecting Interests

Entertain all reasonable purchase offers from qualified buyers ready to negotiate specifics in good faith. But don’t let eagerness push you into accepting non-refundable cash deposits alone. Counter signing full sales contracts better protects interests as a DIY Colorado land seller. Contracts should include:

  • Sale price locking in agreed valuation
  • Contingencies allowing withdrawal if buyers cannot finalize financing or due diligence
  • Earnest money amount requiring deposit into an escrow account
  • Inspection period defining timeframe for due diligence involving land
  • Closing date approximately 30-60 days out
  • Option period details if contracts involve multi-stage land deals

Decline closing at buyers’ attorneys; select reputable title company or escrow office to handle impartial payment disbursement and deed filing. With papers signed, buyers then finalize financing and inspections while you anticipate closing!

Selling beautiful Colorado land without agent involvement requires hardcore commitment from motivated sellers. But taking the DIY path also means avoiding commission payouts eroding sale profitability. Follow the experts’ tips in this guide finding new stewards cherishing what a special land parcel you’ve nurtured offers aligned with their aspirations too!

Final Thoughts

Selling alluring yet unutilized Colorado land without enlisting a real estate agent represents a rewarding yet challenging undertaking for motivated sellers. However, properly applying the key steps for DIY transactions outlined above smoothens the overall process while empowering owners achieving optimal sales values matching fair market rates. From accurate pricing guidance using appraisals to aggressively marketing properties across numerous channels, this guide shares proven insights guaranteeing success when independently selling land parcels in Colorado's ownership opportunistic real estate environment.

Frequently Asked Questions

What closing costs typically arise when selling land by owner in Colorado?

Top fees involve title policy, recording charges, prorated taxes and legal document drafting averaging around $1,000+ in total. Buyers usually cover title insurance. Discuss closing splits initially.

What percentage below appraised value should a pricing discount be when listing land?

A 10-20% price allowance below formal appraisal values right-sizes asking rate expectations among buyers cognizant that appraisals establish uppermost market ceilings.

Can oil/gas or mineral rights be separated when selling land in Colorado?

Yes, subsurface interests may convey separate from surface land rights via distinct deeds. Consult attorneys to navigate these segmented sales correctly.

Is it risky selling to the first buyer making an offer on my land?

Not inherently if properly vetting their financing capability and intended land usage aligned with your expectations. Don't yield to pressure tactics. Evaluate all good faith buyers objectively.

Should DIY Colorado land sellers handle paperwork and title transfers alone?

While permissible, retaining lawyers or title company closing services remains advisable guiding proper document execution, recording and payment disbursements. These prevent costly problems down the road.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.


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