Pros and Cons of Selling to a Maryland Land Company

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Pros and Cons of Selling to a Maryland Land Company
By

Bart Waldon

Maryland is a mid-Atlantic state with diverse landscapes, from the beaches and bays of the Eastern Shore to the mountains of Western Maryland. With a long history dating back to the colonial era, land ownership and use have evolved significantly across the Old Line State over the centuries. These days, many Maryland landowners find themselves wondering if selling to a local land company is the right move for their situation. This article will dive into the key pros and cons to weigh when considering if and how to sell your Maryland property.

The Maryland Land Market: An Overview

Before analyzing the positives and negatives of selling land to a company in Maryland, it helps to understand some basics about the state's land market. Maryland real estate as a whole is dominated by the Baltimore-Washington metro area, which contains over half the state's population. Other regions like the Eastern Shore or Western Maryland can have very different land dynamics.

Some general trends in the Maryland land market include:

  • Historically stable land values, with steady if unspectacular appreciation over time. However, the market is seldom boring or predictable year-to-year.
  • Increasing development pressures around cities and towns, mixed with conservation efforts to preserve rural lands.
  • Tourism and second-home demand helping bolster land prices in coastal and mountain areas.

When weighing whether to sell your land in Maryland, these and other local factors will impact the decision-making process...

Pros of Selling to a Maryland Land Company

Selling land you own in Maryland to a local land company comes with a variety of potential benefits. Understanding these pros can help inform your choice when the time comes to sell.

Cash Offers and a Simple Process

One of the biggest draws of selling to a Maryland land buying company is the chance to exchange your property for cash quickly and easily. Local land investors have the funding readily available to buy properties outright, without waiting on bank financing. They can also handle the entire sale process with you directly, optimizing for speed and simplicity especially compared to listing on the MLS. This makes these companies a convenient option for landowners needing or wanting to sell fast.

As-Is Condition Accepted

Additionally, reputable land companies in Maryland purchase property in as-is condition. There is no need to pay for clearing, cleanup, repairs, or other improvements before selling. The land buyer conducts their own due diligence instead to assess the current state and value of your land. This as-is policy simplifies the transaction and can prevent you from shelling out extra money prior to closing.

No Obligation Offers

You also won’t be pressured into accepting an initial offer from a land buying organization. The company will provide you an no-obligation offer valid for a set period of time. This gives you breathing room to consider the deal, consult with advisers, or even shop around the proposal. Just be aware that real estate markets can change quickly, so don’t let an offer expire unless you’re certain you can do better.

Pay All Cash at Closing

There are typically no bank approvals or financing contingencies when selling to a Maryland land investor. After agreeing to terms, you can expect an all-cash sale handled directly between you and the buyer. This produces a more reliable transaction, gets you paid at closing, and reduces various complications that can interfere with sales.

Cons of Selling to a Maryland Land Company

With the benefits also come some potential costs when opting to sell your land to local purchasing company instead of listing on the open market. Make sure to reflect on these cons before making any final decisions.

Below Full Market Value Offers

The biggest downside of selling land to a Maryland land company is often accepting less than full open market value. Land investors build in room to profit when making offers. This inherently means offering below what buyers might pay if competitive bidding occurred through an MLS listing. While sometimes still fair, analyze the discount critically before agreeing to terms.

Unknown Resell Plans

You also don’t usually know what the buyer intends long-term with your land if selling to a purchasing company. They may flip the property quickly for a profit or could strategically hold the asset for years before reselling or developing. If you care about what happens to the land going forward, consider inquiring about the company’s general intentions.

Potentially Lengthy Sale Timelines

Additionally, outside of the core Baltimore-Washington regions, certain areas of Maryland can take longer to resell land profitably. Less competitive markets on the Eastern Shore or in Western Maryland see relatively lower sales volumes and smaller buyer pools. If you need the proceeds from the land sale in the near term, be sure to discuss expected time-horizons.

Limited Negotiation Opportunities

Lastly, the offer prices when selling to a land company typically don’t leave much room for counteroffers and negotiation. Where an MLS listing might generate competitive bidding, land investors make volume purchases at thin enough margins that dramatic price changes are unlikely. Know going in that the initial offer is likely close to final.

Key Questions to Ask Before Selling Your Land

If you’re considering selling to a Maryland land buying company, here are some important questions to ask both yourself and the buyer’s representatives during the process:

Yourself

  • What is your timeframe for needing proceeds from the sale?
  • Do you require every last dollar of value from the property?
  • Are you willing and able to handle marketing, showings, and negotiations yourself?

The Company

  • How long have you been in business buying/selling Maryland land?
  • What type of condition do you require the land to be in?
  • What approvals or contingencies could delay or jeopardize closing?
  • Do you have funds available now to purchase my property?

Asking these and other questions upfront will help ensure you go into a potential land sale to a company with eyes wide open.

Weighing the Pros and Cons

As the above outlines, there are varied advantages and disadvantages to explore when considering selling your land to local buying company like Land Boss versus listing the property more widely on the open market. From fast and simple transactions, to potentially leaving some money on the table, make sure to reflect carefully on your specific situation before deciding. With the right information and expectations going in, selling land to a reputable Maryland firm can end up being the optimal choice for many property owners.

Final Thoughts

Selling land always presents an array of options, from listing on the MLS, to selling via auction, to direct sales to investors and companies. There is no definitively right or wrong path forward. When weighing whether to sell your Maryland property to a local land buying company, carefully analyze both pros and cons in the context of your personal timeline, value requirements, and risk tolerance. If speed and simplicity are prime motivators or if you no longer want the hassle of ownership, selling to an established firm like Land Boss could prove optimal. Just make sure to do your due diligence on the buyer, understand all terms and implications, and don’t feel pressured into any choice that leaves you uncomfortable. With the right partner and the right fit, selling land directly to an investment company can relieve you of the property burden while still yielding reasonable financial compensation.

Frequently Asked Questions (FAQs)

Will a land company try to lowball me on price? 

Land investors do need room to profit when making offers. However, the best firms still aim to provide fair market value. Get multiple bids to compare. If much lower than expected, carefully assess why before accepting.

How fast can I get paid if I sell to a company? 

With all-cash offers and fewer contingencies, reputable land buyers can pay within a few weeks of finalizing the purchase contract. Some even boast two week or less turnarounds.

What if I have an existing mortgage on the land? 

Many land companies have the capability to pay off any liens or loans on the property directly at closing. This becomes part of the final sale price negotiations.

What proof of ownership do I need to provide? 

Land buyers just require you provide a deed proving current legal ownership. Title searches are then done to verify no other outstanding claims exist on the property.

What happens if I have a change of heart after agreeing to terms? 

If having second thoughts, don't worry initially. No-obligation offer periods let you cancel if finding better options. Just don't let too much time lapse as market shifts could erase the original deal.

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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