Pros and Cons of Selling to a Louisiana Land Company

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Pros and Cons of Selling to a Louisiana Land Company
By

Bart Waldon

Louisiana is known for its vibrant culture, mouth-watering Cajun cuisine, lively music scenes, and of course the exciting city of New Orleans. Beyond the jazz clubs and beignets though, the state also spans over 43,000 square miles featuring wetlands, farmlands, forests, and more. With so much open space, land ownership, sales, and development are always hot topics across Louisiana.

If you currently own vacant land in Louisiana and are considering selling, you may be weighing options on the best way to approach it. Trying to sell land on your own through classified ads or For Sale signs can be a time-intensive and uncertain process. Alternatively, you could partner with a local Louisiana land company that focuses on buying and selling land in the area.

Below we’ll explore some of the key pros and cons of selling your Louisiana land to a specialized local company instead of taking the Do It Yourself (DIY) routes:

Pros of Selling to a Louisiana Land Company

Quick Cash Payouts

The number one advantage of selling to a land company based in Louisiana is the ability to get your cash fast, usually within a couple days of signing the purchase contracts.

Land companies have funds readily available to buy properties that fit their criteria, allowing them to expedite payments. As long as you have clear title and ownership, you can get your money fast instead of waiting months for bank approvals like many traditional sales require. This perk appeals to sellers who want to access funds quickly for other investments or expenses.

As-Is Condition Accepted

You also avoid extensive costs prepping or repairing the land before selling when you work with most land companies. Whereas buyers may request inspections, appraisals, cleanup efforts, and more through conventional sales avenues, companies buy land in as-is condition. As long as you prove ownership and disclose any liens, they take responsibility for maintenance, taxes, titles, etc. once purchased.

This appeals to sellers with vacant lots that may contain debris, unwanted storage items, vegetation needing cleared, or other imperfections. Land companies accept the property in its current state and handle any work needed themselves.

No Marketing or Negotiations Required

Attempting a For Sale By Owner (FSBO) situation with land can prove stressful and labor-intensive, especially spread over many months or years. You have to market nationally to attract potential buyers, field inquiries, schedule showings, negotiate offers, and navigate contracts and financing. However, selling to a land company based where your property is located handles everything start to finish.

After submitting basic details about your land for review, companies like Land Boss determine value based on comparable land sold in the parish and make competitive all-cash offers. The burden lies on them to market and resell at higher retail prices later per their business models. You avoid overtime trying to promote land, haggling prices, accommodating tour requests, and more yourself by going through a local land company.

Guaranteed Sale Despite Market Fluctuations

Attempting to sell land on your own poses uncertainties about whether a buyer will ever commit or market prices shifting before you sell. Signing with a reputable land company like Land Boss though results in a guaranteed sale regardless of the current market. They buy land themselves then handle marketing it for resale later once values potentially increase more in their favor.

Some land sits on the open market for up to two years before attracting a suitable buyer. With a land company, you sell instantly despite turbulence or drops in the land industry. Companies buying land ride out temporary dips viewing long-run appreciation potential down the road.

Cons or Limitations of Land Company Sales

Of course, selling your Louisiana land to a local real estate investment group also comes with some drawbacks to weigh:

Below Maximum Market Value Offers

The obvious catch when selling land quickly to a company is accepting under list prices. Groups like Land Boss that pay cash urgently rely on buying at significant discounts then marketing for higher retail prices later. If aiming for top dollar on a macro-economic scale, you might wait out a longer for sale by owner attempt.

However, companies argue that average timelines to sell land independently often span over a year when factoring in nationwide marketing, title issues, contract negotiations, and more. Also, market values constantly shift, posing uncertainties about future salability. Land companies admit making lower offers based on the timeliness, certainty, and convenience offered.

Tax Implications

You also need to consider capital gains taxes when selling land potentially below true market prices. If your property value increased significantly over years of ownership, the Internal Revenue Service taxes profits once sold. So actual cash in your pocket could prove less than expected after accounting for both under market sales and capital gains taxes.

Work with qualified professionals to project tax implications beforehand when contemplating offers from land investment companies. Sometimes waiting for higher asking prices pays off more after IRS cuts, but other cases favor swift sales despite lost appreciation potential down the road.

Pressure for Quick Decisions

When contacted by a land company, talks progress rapidly towards cementing a deal. Most request title work and disclosure statements upfront then follow up with organic offers based on in-house appraisals and data. The sudden urgency around presenting an offer with expectations for quick answers can catch sellers off guard though.

Whereas For Sale By Owner listings allow you to field multiple bids over months, land companies expect fast go/no-go decisions on their proposals. Make sure to clarify any aspects of their deals and valuations determining factors beforehand though if something proves unclear initially. It pays to understand how companies calculate property worth to make informed counteroffers as needed.

Potential Rezoning/Development Lost

Lastly, sellers lose future rezoning and development potential off their land when transferring ownership to investment groups. Land companies aim to sell at higher retail eventually to homebuilders, farmers, or other end-users based on current property classifications and usage.

However, some vacant land presents opportunities years down the road for rezoning approvals opening up more valuable commercial developments otherwise restricted currently. Land groups won’t wait out or speculate on the possibility of future zoning changes though that could exponentially increase property valuations later.

Key Considerations for Louisiana Land Sellers

Assess your personal timeline, financial goals, and risk tolerance when deciding between a direct For Sale By Owner attempt or dealing with a Louisiana land company to weigh tradeoffs. Consider how quickly you wish to sell and access funds, whether you can wait out market changes and delays accepting potentially higher future offers, and what value you place on time savings and convenience throughout the sales process itself.

If electing to explore offers from a land company, make sure to:

  • Verify years in business, number of properties bought/sold, online reviews, Better Business Bureau ratings and more before sharing personal information
  • Carefully review business processes, terms and conditions, commercial entitlements, etc. to understand dealings from start to finish
  • Consult qualified tax professionals beforehand to estimate capital gains tax impacts
  • Learn how land investment groups appraise properties to formulate offers so you can request details or dispute valuations backed by marketcomps
  • Clarify ALL aspects of initial purchase offers and post-sale expectations before final signatures

Selling land Always presents multiple options for Louisiana owners – and various pros and cons to weigh based on your situation. Local land investment companies aim to deliver speed and simplicity but at discounted rates. Just ensure you enter deals well informed!

Final Thoughts

Selling land is a major decision involving complex financial and legal considerations. Louisiana landowners specifically navigate unique regional dynamics across bayou territories stretching from the Gulf Coast to pine forests up north. When weighing options to transact vacant property in the state, companies like Land Boss provide localized expertise to broker deals, but naturally limit payout potential buying at discounts then reselling later per investment models. Conduct thorough due diligence beforehand when engaging any land buyer. Consult qualified real estate professionals to estimate fair market values based on parish comparables and weigh tax implications. Also, research ownership entanglements, title constraints, applicable property disclosures, and more to guarantee smooth sales. Selling land should follow informed, strategic processes that balance both current financial goals and long-term development potentials down the road. Take time identifying the option best aligned to your personal objectives as a Louisiana landowner exploring a sale.

Frequently Asked Questions (FAQs)

What kind of land does a Louisiana land company buy?

Most Louisiana land companies purchase vacant residential, commercial, agricultural, or industrial land across urban and rural areas. As long as a title proves legally sellable, most will consider any undeveloped, raw land.

How long does the sale process take with a Louisiana land company?

Once an offer gets accepted, sales can close within 5-10 business days as land groups pay cash. The title transfer, attorney review, and money disbursement complete on expedited timelines.

Will a Louisiana land company try to lowball me on my property?

Many do make initial offers below asking prices or true market values given their business model to buy discounted, then sell later at retail. However, you can provide comps supporting justifiable counter offers to negotiate equitable deals.

Should I inform a land company if there are issues with my property?

You must legally disclose all liens, boundary disputes, clean up needs, or other "as is" defects before finalizing contracts. They'll still likely buy given the land, but transparency locks in binding sales in good faith.

What costs will I still owe even after selling to a Louisiana land company?

You must pay any outstanding taxes, liens, or title insurance charges related to the land up until the formal ownership changes hands. But companies cover all future fees themselves once purchased.

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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