Selling Commercial Land in Minnesota (The Easy Way)

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Selling Commercial Land in Minnesota (The Easy Way)

Bart Waldon

Boasting over 26 million total acres statewide, Minnesota contains ample inventory fulfilling dreams leveraging land’s enduring commodities potential feeding national food supply channels or underpinning bullish development ventures spanning technology campuses to distribution hubs. But when current economic instability or shifting business priorities force sales of commercial property assets once comprising legacies – easier exit strategies quicken transitions while securing top dollar ROI protecting earlier sweat equity invested years before.

This guide covers proven techniques streamlining commercial land divestitures in Minnesota without squandering hard-earned property equity or losing control to opportunistic buyers feigning helplessness when market headwinds arise. Take control over your own Minnesota commercial acreage destiny and outcomes through flexible disposal strategies benefiting all stakeholders.

Scrutinize Zoning Code Changes Impacting Valuation

Many owners cling to original property purchase prices as baseline land valuations unaware of surrounding area development decades later now upgraded utility access or zoning classifications expanding usage potentials beyond initial expectations when securing legacy parcels previously.

Research recent code amendments, school expansions and highway extensions influencing appraisals instead of relying solely on outdated permitted usage like agriculture or industrial assumptions established before the tech booms. Area enhancements drive commercial land valuations dramatically over time benefiting sellers pricing accordingly.

Parcel Out Non-Essential Acreage Preserving Core Assets

Instead of flooding the open market with entire land holdings gained years ago inviting lowball offers, consider carving out excess acreage no longer essential to current operations or future plans through land splits or divisions opening incremental income streams. Leave prime frontage or protected build areas intact for future projects or sales when optimal.

Retain half interlocking rear acreage absorbed never leveraging to fullest productivity anyway. Then sell newly created 10-20 acre versatile plot configurations appealing to individual private projects at premium square foot rates realizing instant returns freeing up operating capital. Thereafter unload prime holdings selectively at peak valuations using market analytic dashboards rather than frantic one-time liquidations.

Bundle Multiple Listings Reaching Wider Buyer Pools

Rather than isolate a single struggling listing site draining carrying costs and property management headaches, combine your property with other seller's sites consolidating more attractive packaged offerings broadening buyer appeal. This co-marketing technique essentially merges assets into compelling "opportunity zone" developments.

Perhaps your operated business park fronts a major highway while an aligning seller owns undeveloped waterfront acreage out back spanning miles of shoreline access. By bundling multiple properties into larger master planned community offerings with negotiable deal structures, previously stagnant individual listings gain synergistic demand commanding higher valuations through packaging.

Offer Owner Financing Incentivizing Faster Sales

Buyers lacking sufficient lending to cover full commercial land asking prices upfront often balk on proposition deals no matter how promising over the long run. Rather than losing stellar opportunities over such short term constraints, offer owner financing terms spreading payments over months or years while conveying deeds upfront in return for consistent principal/interest installments securing your rights as a hard lender until concluding payout phases.

Obviously incorporate such contingencies and legal documentation protecting against defaults on binding contracts warranting default claim rights. But get more deals done by demonstrating flexibility helping new owners also succeed long term through strategic partnerships.

The opportunities surrounding commercial land ownership and sales in Minnesota offer life changing outcomes done properly. Avoid panic during turbulent times. Instead consider strategic incremental divestitures preserving assets and earnings for stability. React to positive area enhancements increasing land valuations over time. Get creative bundling smaller sites into larger community offerings expanding buyer pools. And incentivize collaborations through owner financing ensuring both seller and buyer victories for the long run.

Mistakes to Avoid When Selling Commercial Land

Attempting to navigate the nuanced process of selling retail, industrial or mixed-use development sites without guidance risks critical missteps threatening deal closure. Savvy owners should sidestep certain pitfalls.

Pricing Land Assets Too Aggressively

Allowing unrealistic expectations to influence listing pricing remains problematic. By formally benchmarking asking figures against recent sales of comparable commercially-zoned lands in proximal geographies, then factoring unique traits accordingly, clarity on accurate valuations emerges.

Neglecting Necessary Site Enhancements

While preparing raw land for investment-grade readiness carries some costs upfront, enhancements like preliminary architectural plans, cleared sites and initial infrastructure often significantly lift property appeal and buyer bids. Projected value gains justify positioning sites optimally.

Disregarding Importance of Location Analytics

Thriving pockets surface amid transitions as metro fringes capture overflow, intersections raise profiles. Plotting recent construction projects, permit approvals, road extensions and area retailer entries quantifies micro-market momentum beyond broader generalizations. Granularity provides site advantaged insights.

Overlooking Due Diligence Obligations

Attempting to offload sites without formalizing entitlements, zoning statuses, addressing easements or validating environmental soundness risks deal blowups when buyers uncover issues during counter-research. Resolving deficiencies ahead of listing subtracts bargaining drag later.

Refusing Reasonable Deal Adjustments

Between counteroffers adjusting pricing terms to reflecting project timelines or contingencies aligning value to milestones, flexibility fuels deals. Owners prioritizing liquidity over marginal upside concessions keep transaction momentum flowing. Shared upside always exists.

Final Thoughts

When selling commercial land in Minnesota’s inconsistent terrain, thoroughly understanding location value variances, resolving deficiencies ahead of promotions and conveying site potentials convincingly while also negotiating flexibility around pricing and terms smooths ownership transfers considerably.

Frequently Asked Questions

How Can I Estimate My Land's Current Resale Value?

Engaging a commercial land appraiser to assess geo-specific factors like recent area sales figures, demand drivers and property enhancements establishes credible valuation upon which to base asking pricing during negotiations.

What Steps Can I Take to Improve My Asset's Appeal?

Depending on buyer targets, site works like clearing/grading, conceptual building placement plans detailing UTIL tie-ins, preliminary engineering tests or even installed utility mains can position shovel-ready lands ahead of competition.

Should I Consider Retaining a Specialized Broker?

Commercial brokers versed in investor motivations for site selection provide invaluable pricing guidance, targeted promotional avenues and buyer networking delivering higher sales velocities versus individual sellers attempting alone.

What Creative Deal Structuring Tactics Might Attract Buyers?

Land contracts allowing longer payment timeframes, lease-to-purchase arrangements, seller financing and milestone-based contingencies provide added flexibility overcoming common obstacles that can stall deals at the table.

What Should I Research Before Listing My Property?

Verifying clean title, no unresolved liens/easements, zoning codes allowance of intended use, environmental soundness reports and utility serviceability basics prevent buyer objections sinking deals after inspecting further.

What Indicators Suggest Good Areas to List Commercial Lands?

Plotting recent building approvals, highway infrastructure projects, corporate relocations and retail/industrial developer entries quantifies investment momentum, steering promoted opportunities accordingly to optimal buyer pools.

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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