Pros and Cons of Selling to a Arkansas Land Company

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Pros and Cons of Selling to a Arkansas Land Company

Bart Waldon

With Arkansas' private agricultural and timber-rich raw land valuations climbing over 14% statewide, according to 2023 University of Arkansas data, to an average of $3,759 per acre, owners face a prime time to review monetization options as markets hit cyclical highs attracting considerable buyer demand. Selling through private MLS listings allows testing true retail sales potential but demands extensive upfront marketing, withe 1-2 year timelines common for attracting interested buyers and developers to most remote holdings. 

Alternatively, established Arkansas land buying companies offer frequent cash purchase offers on acreage based on current comps, enabling fast exits albeit below the ceilings possible. This introduction summarizes key tradeoffs evaluating direct buyers before choosing listing or offers routes when the numbers make sense for individual portfolios based on ownership objectives, budgets and risk profiles involved across available exit strategies.

Pros of Selling to An Arkansas Land Company

Instant All-Cash Offer 

Perhaps one of the biggest advantages of selling your land to a local land company in Arkansas is that you can get an instant all-cash offer, usually within 24 hours of initial contact and sharing details. For individuals and families who need funds urgently whether for medical bills, debt repayment, renovations or even new investments, this is a huge plus.

A land company will make it easy by offering cash upfront without any cumbersome paperwork and processes unlike banks or other financial institutions. All you need to do is show them survey maps, transfer deed as proof of ownership and property details. Within a day, in most cases, they will provide a concrete offer so you know exactly what to expect.

No Need to Repair or Renovate Land 

When putting land or property on the general real estate market, owners need to ensure the land is in good shape with all infrastructure and facilities well-maintained. This usually means spending a significant amount of money on repairs like fixing broken fencing or farm infrastructure, clearing out overgrown mess, improving access roads and so on.

However, with a land company purchase, all land is usually bought on an as-is basis so you can skip expensive repairs and improvements. It saves you both time and money, allowing you to sell off the land hassle-free exactly in its current condition.

Fast Transaction That Closes Quickly 

A huge roadblock many landowners face when attempting to sell their property on their own is that it takes very long to find an interested buyer ready to close the purchase. Issues like financing and paperwork can further delay completing transactions, with many ending up unfinished even after months or years.

Selling to an Arkansas land company allows you to complete the entire land selling process within a few weeks or a month at most. These companies have the cash availability and handle all paperwork to buy land fast once initial purchase terms are agreed upon. So, if you need to liquidate land quick for any reason, they represent the fastest way to do it.

No Commission or Agent Fees 

Real estate agents usually charge a handsome commission when facilitating the sale of land or property on behalf of clients. And if you were to engage a business broker, auction house or land broker, their fees can also pile up quite a bit. However, by approaching an Arkansas land company directly regarding an outright cash purchase of your property, you get to avoid all these commissions and fees altogether.

Since there is no middleman involved, the entire amount offered for your land goes directly to you minus perhaps some nominal title transfer charges. This means the offer price is normally higher than what you would get after paying commissions had you listed the property with a land agent.

Risk Mitigation 

Selling land always carries some inherent risks no matter what approach a landowner decides to take. From market fluctuations to issues with lawyers or agents, many things can go wrong last minute. This can result in offers falling through or even some kind of litigation.

Opting for the straightforward approach of selling to a reputable local land company mitigates many of these risks for you. As long as due diligence is done by both parties on aspects like title verification, easements, survey documentation etc. there is very little chance of any dispute arising later on. For people wanting additional peace of mind, getting a professional second opinion on the purchase offer and fine print is recommended.

Cons of Selling to An Arkansas Land Company

Receiving Below Market Value Offers

Arkansas land companies thrive on their ability to buy land cheap so this means they will quote below-market prices in most cases. For land owners who have done their research and feel the property is undervalued, accepting such offers can feel like leaving money on the table.

However, in many situations, owners discover that actual market value is quite different from perceived value. Factors like poor access, remoteness, zoning issues, easements etc. can drastically bring down what buyers are willing to pay.

Unless urgently needing to liquidate land, owners should get multiple offers and consult real estate agents or valuation experts to gauge fair market value before accepting quotes from any land company.

Risk of Reputational Damage 

While most land companies in Arkansas conduct business ethically and legally, a few unscrupulous ones have given the industry a bad name with questionable tactics. Controversies range from overly persistent soliciting of landowners to obscure fine print and even allegations of fraud in some instances.

Thus, landowners considering a sell-off should conduct thorough reputation checks of the land company they engage with. Online resources like BBB ratings, social media pages, client testimonials and checking for any legal disputes can help ascertain if the company is ethical. Consulting an attorney to review the purchase agreement before signing is also wise.

Lack of Emotional Considerations 

For many landowners, their property is not just an investment but also an emotional one with memories and family history attached to it. Land companies will strictly view the transaction as a commercial one without sentimental considerations.

So, while liquidating the land may make logical and financial sense, some landowners struggle with the idea of handing over property that has been in the family for decades or even generations. Working through the emotional conflict via counseling and discussions with family is important before progressing with a sale.

Title & Documentation Complications 

In some exceptional cases, despite extensive due diligence prior to purchase, complications related to land documentation can arise. Issues like obscure easements notices coming to light or questions over boundary markings may need legal intervention to resolve.

While reputable land companies will do their best to handle such rare scenarios amicably with the seller, the process of getting disputes resolved through the court system tend to be time-consuming and draining if there is lack of clarity over certain aspects. Landowners can opt to get title insurance as an added precaution in this regard.

Final Thoughts

On one hand selling land to a local Arkansas company can help landowners unlock equity and cash instantly besides avoiding the hassles of traditional property sale processes. But appropriate due diligence must be undertaken by both parties with expert second opinions advisable in some cases. Checking credentials, client reviews and opting for title insurance etc. can help minimize risks for landowners exploring this route of sale.

Frequently Asked Questions (FAQs)

Do Arkansas land companies pay fair prices for land? 

Most reputable Arkansas land companies try to make fair cash offers based on property details and market factors. However, since they intend to profit from reselling the land, their quotes tend to be below full market value. Sellers should compare multiple offers and get expert valuation advice before accepting a quote.

How long does it take to sell land to one of these companies?

A huge advantage of selling to a land company instead of the open market is the speed of the process. Most transactions close in a few weeks once purchase terms are finalized, as the company has readily available funds and handles documentation efficiently.

Are there any hidden costs involved with selling land to a company? 

There are generally no middleman commissions or broker fees involved as you sell directly. Some nominal costs related to paperwork, legal transfer of deed and title insurance may apply. Ensure to read the purchase contract offered carefully.

What factors do these companies consider when making an offer?

Location, size, terrain, road access, current usage, utilities availability and zoning regulations primarily dictate the cash price offered for land in Arkansas. Easements, encumbrances and structures may also positively or negatively impact property valuation.

Can I negotiate the initial offer from the company? 

Definitely, the first offer should only be considered an opening price. Research property rates in your area and highlight special attributes about your acreage while negotiating politely to get the best possible rate. Most companies expect counter offers. Know your bottom-line price while negotiating.

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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