House For Sale vs. Lot for Sale: What’s the Difference?

Do you think selling a lot is the same as selling a house? Well, you might want to hold that thought for now because the market dynamics between the two aren’t entirely the same. For starters, they selling a home and a lot come with varying legalities, sale procedures, pricing factors, and target buyers.

In this article, we’ll discuss the significant differences between home selling and lot selling so you would learn what to expect in case you or someone you know wants to venture in either of the two.

• Target buyers

Homebuyers are different from land buyers because they usually have different end goals for buying the property. Homebuyers usually look for a house they can live in or a place they want to rent out, and thus they usually prefer a move-in-ready property. Homes complete with granite counters and freshly painted walls, or at least those that require minimal improvements, could be popular as buyers can use them earlier than other types of properties.

On the other hand, land buyers could either be individuals or developers who are in search of the right location or a place where they can develop their dream house, a business, a commercial building, or a place where they can establish something they’ve been imagining for so long.

Homebuyers could be very particular with furnishings and light fixtures, while land buyers are more concerned with the zoning code allotted to the land so they can customize the lot to fit their needs.

In terms of demographics, first-time homebuyers are typically families or couples with a median age of 34. Land buyers could either be individuals looking to build a home from the ground up or developers looking for a place for their business. Texas is a popular place to buy land if you are on the hunt for a lot. It’s a hit among retirees, but it’s not necessarily the cheapest place. According to data from Land Hub, the most affordable places to acquire land are Tennessee, Arkansas, and West Virginia.

• Distinct sales approach

When agents sell you a house, they can give you tons of photos, from the spacious kitchen to the sprawling greens in the backyard. Home sellers or their agents may also hold an open house for potential buyers, which is not quite the same when selling a lot.

A lot needs more visualization and may require more market factors for buyers, so one of the greatest strategies is to develop different imagery based on different ways you could use the lot for. For instance, you can design a mansion that is built on that lot, a commercial space (if the location is great for businesses), a resort, a farm, or others, depending on the advantages of the property.

One similar marketing approach to home selling and land selling is utilizing social media. Sharing a lot for sale or a home for sale through Facebook Marketplace is a significant step to reaching potential buyers from different states.

• Different real estate agents

Many real estate agents specialize in buying and selling specific property types. If you want to sell your lot, tap an accredited land consultant who has more expertise in land transactions. Realtors deal with traditional residential home sales, so they are the best people to hire if you want to divest your home and search for a new one.

Land buyers bring their perspective to the real estate market because they have more variety in their purpose of acquiring. Some people want to acquire land to build a farm or a ranch, while others want to use it for residential or recreational purposes, so it’s best to have a land consultant because they are more familiar with the sale process.

• Specific financing options

 Home selling and lot selling also come with different financing options. The seller usually offers owner financing when you market land, especially if the right conditions are met. This will land you a bigger pool of potential buyers who can purchase your lot.

It’s typically more challenging to secure financing for a vacant lot compared to a residential property. In most owner financing arrangements for homes, the seller records a mortgage against the property sold through deed transfer to the buyer. Instead, the owner might retain the land title as leverage for land contract arrangements.

Real Estate Selling Varies

Real estate is not a one size fits all process. You have to do your research to find what fits your needs, whether you want to sell a home or a lot. Houses and lots are different properties in nature, so there’s no room for you to be confused if you want to sell or buy one. Selling any property could take a lot of work and could be time-consuming as well, so it’s always best to consider options that make sense for the property you sell and your financial situation.

Depending on your locale, purchasing land can be cheaper than buying a house. However, purchasing land as an asset can be challenging and take years to yield profit. Whether you are selling a home or selling a lot, sellers must have the patience to deal with the legalities, process, and curious potential buyers.

Consult with Shorefront Investments

However, if you want to sell a lot or home within just 7-14 days or less, we recommend that you schedule an appointment with Shorefront Investments. We buy all types of real estate properties in various areas and in any condition – no repairs, renovations, refurbishments, or even cleaning required.

We buy properties in three simple steps. The first step is to fill out this form or call 850-713-4866. After that, our team will schedule an appointment to talk about your property and see it on site. The last part is when you’ll receive a no-obligation cash offer from us within 24 hours. In case you accept the offer, our team will process the documents required on your behalf without commissions or other additional fees, so you can take more money with you after the sale.