How to Sell Land for Cash in Louisiana

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How to Sell Land for Cash in Louisiana
By

Bart Waldon

Louisiana is known for its rich cultural heritage rooted in European, African, and French influences. Its diverse landscapes range from swamps and wetlands to pine forests, fertile deltas, and miles of coastline along the Gulf of Mexico. With oil and gas production driving parts of the economy, Louisiana also has thriving industries in chemical production, shipping, tourism, and agriculture.

For landowners in Louisiana, the reasons for selling vacant property are as varied as the geography across the state’s parishes. Some may look to cash out an unused asset, while others inherit undeveloped land they have no use for. Companies like Land Boss provide a streamlined way for owners to sell their land for cash in Louisiana’s complex property market.

Navigating Land Values in Louisiana

A common hurdle for land sellers in Louisiana is difficulty pinpointing a fair market price. Many factors create volatility in land values across different parishes. Local site conditions, property demand shifts, zoning changes, infrastructure projects, environmental regulations, and economic trends can all impact prices per acre. With valuations varying widely even between neighboring plots, sellers often wrestle with balancing ask and bid prices during negotiations.

For example, land that was purchased 5 years ago for $2,000 an acre could now be worth $5,000 an acre due to new housing development plans approved nearby. But due to poor soil conditions on the property, its true value may be closer to $3,000 an acre for agricultural use. A seller would have to carefully compare multiple data points to land comps in the area to gauge an appropriate listing price.

While a few niche properties may attract multiple buyers bidding up offers, the majority of rural and vacant lands require substantial effort just to find one qualified buyer. And if sellers overprice the land, it could sit on the market for up to 1-2 years until finding the right fit. Properties listed for 3-6 months are common if owners have more flexibility on timeframes.

When aiming to sell land purely for cash returns, thinking like an investor is key. Savvy investors buy land for profit, which means acquiring properties at a significant discount to leave room for resale gains down the road. Contrary to negative assumptions, most cash buyers are not predatory “low-ballers” taking advantage of desperate sellers. They simply cannot pay retail prices if they hope to eventually sell for a higher value. Many reputable cash buying companies aim for a 20-30% discount on properties to balance rewarding sellers and protecting their business interests.

Choosing the Cash Land Sale Route

Selling land through traditional financing methods involves great patience and taxes one’s mental fortitude. The process drags out between six months to a year mired in contingencies as buyers scrambled together down payments and navigate loans. Delays pile up while buyers secure financing, appraisals, and inspections before closing. And if loans fall through, sellers must start the cycle again with new potential buyers.

Those who succeed selling for top dollar often have real estate or legal backgrounds themselves. They carefully market properties through broker listings and MLS databases while screening for qualified buyers across months. If loans or appraisals derail deals, they handle renegotiations expertly.

Cash sales accelerate the process since proof of funds and inspections replace waiting on bank approvals. Closings cash in weeks rather than months. For inherited properties, cash deals also avoid legal complexities of splitting proceeds between multiple heirs.

Selling land for cash makes sense for those who:

  • Seek a faster, simpler sales process avoiding financing delays
  • Do not have the ability or desire to market and show their land extensively over months
  • Prefer to sell as-is regardless of issues found by buyers rather than making repairs
  • Want to liquidate their asset without assuming loans or ownership stakes
  • Need proceeds quickly due to financial constraints or urgent opportunities

Retirees, inherited owners, out-of-area owners most often benefit from these accelerated cash sale timelines. But any seller who prioritizes speed and convenience over maximum property prices finds cash deals more suitable.

Working With Cash Land Buyers

Once a landowner decides to pursue a cash sale, finding and vetting serious buyers becomes the next step. Average owners may start by listing on common marketplaces like Zillow or Loopnet. However, online postings tend to attract more window shoppers than qualified purchasers prepared to buy. Lead generation costs stack up through website listing fees and agent commissions up to 10%.

A better approach is leveraging buyer networks that deal directly in cash land transactions. Groups like Land Boss have in-house funding, making them cash buyers ready to close once they valuate and inspect properties. Reputable cash buyers also simplify due diligence by buying as-is regardless of zoning, utilities, condition issues, or title problems. This saves tremendous time and legal expenses for both parties.

During initial outreach, owners should compile details like:

  • Property type: residential, commercial, industrial, agricultural
  • Location specifics: address, parcel numbers, acreage
  • Existing infrastructure: roads, water, sewer, electric
  • Previous uses and current zoning classification
  • Most recent assessed value and tax burdens
  • Mineral rights inclusion status
  • Liens, ownership disputes, or encumbrances

By providing these details upfront in initial inquiries, cash buyers can quickly vet for dealbreakers before creating offers. It prevents wasted time pursuing deals that will not work given restrictions around their investing criteria. For instance, a buyer focused on residential development would pass on offers if industrial zoning or environmental hazards existed.

Sellers should ask probing questions as well to assess buyer legitimacy and experience with cases similar to theirs. Background checks reviewing social media sites, business registrations, and public record searches add further validation before sharing sensitive financials.

Negotiating Win-Win Deals

During offer exchanges, cash buyers and sellers will negotiate to settle on an agreed purchase price and closing timeline.

For buyers, their primary benchmark is purchasing enough below expected resale value to generate a profit. Depending on plans for the land, this might equate to 20%-50% under market value. Buyers also consider factors like:

  • Speed and costs of due diligence
  • Projected permitting and development costs
  • Current demand trends and economic outlook
  • Comps of recent sales of comparable lands

Ideally, buyers spend no more than 70% of their projected resale price to enable sufficient returns. But this must be balanced against losing deals to higher bidders. Savvy investors build in buffers averaging 50-60% buys.

For sellers, payout goals likely tie to financial needs or wanting maximum returns for other investment options. Those open to reasonable offers can sell in far less time compared to traditional financing contingent on appraisals. Sellers might also forgo repairs that buyers may have demanded. Their minimum prices could be defined by targets like:

  • Paying off business or personal debts
  • Funding college tuition
  • Gaining seed money for a new venture
  • Securing retirement nest egg

These types of sellers care more about receiving fair bids promptly rather than stretched out quests for top values.

Win-win deals happen when both parties feel satisfied with the risk-reward trade-offs. Buyers acquire discount priced land with upside. Sellers receive fair payouts avoiding hassles and delays.

For example, a buyer recently purchased 10 acres of farmland for $7,500 an acre that comps at $10,000. This 25% under market value discount will become profit later when they develop and sell parcels to home builders. The seller gained $75,000 within a month to pay off medical bills without making any repairs.

Closing the Cash Land Sale

After aligning on price and terms, buyers order appraisals, surveys, title searches to confirm all checks out. Sellers disclose liens ensuring a clear title conveyance. Buyers secure funds for closing while settlement agents prepare required legal documents.

For disputed inheritances, legal counsel may be involved to handle executor mandates or resolving heir claims. Environmental assessments gauge risks for developments involving construction permits. Tax advisors assist in navigating capital gains obligations or 1031 exchanges to defer taxes.

Finally, sellers and buyers meet for signing appointments to make the sale official by:

  • Inspecting proof of cashiers checks
  • Signing closing documents
  • Paying agent fees for document filing
  • Collecting any physical property keys, codes, cards

Once signed, the agent records and files all paperwork to transfer deeds. Title companies then update relevant government databases to record the transaction. Sellers receive net proceeds either onsite or direct deposited shortly after.

Buyers may opt to buy title insurance to protect against mistakes or previously unknown ownership disputes. Final walkthroughs also take place where sellers turn over gate codes, storage sheds, maintenance equipment before vacating fully.

Final Thoughts

Selling vacant land for cash empowers Louisiana owners to easily liquidate unneeded assets for fair prices compared to the hassles of traditional financing. Aligning with reputable buyers like Land Boss simplifies preparatory marketing and delivers cash fast through streamlined legal processes. Both parties craft deals catering to respective investment goals or financial needs. What matters most is ensuring sellers receive the best risk-adjusted payouts their situation requires. Those selling land in Louisiana purely for cash can take comfort in reliable options to sell smoothly.

Frequently Asked Questions (FAQs)

How long does a cash land sale take in Louisiana?

A cash land sale in Louisiana can typically close within 30-60 days since no financing contingencies slow the process. Buyers have funds ready, so once inspections and title transfers complete, sellers get paid promptly.

What costs come out of the proceeds when I sell my Louisiana land for cash?

Common seller closing costs include title insurance fees, transfer taxes, liens or back-owed taxes that get cleared, recording charges, and settlement agent commissions if applicable. 

Does my Louisiana land need to have road access or utilities to sell for cash?

Cash land buyers like Land Boss purchase vacant plots regardless of road frontage, utility lines, or other development hurdles. No need to install infrastructure just to sell.

How do cash land buyers determine purchase offers in Louisiana?

Buyers research recent sale prices of comparable land parcels to establish a baseline value. They factor in property conditions, development costs, and market trends to make fair cash offers benefiting both parties.

What happens if I have multiple heirs to split land sale proceeds in Louisiana?

Reputable Louisiana cash land buyers have legal counsel to handle complex inheritance sales with executor mandates, heir disputes etc. Settlement checks easily split.

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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