The Process of Selling Land in Kansas

Vast Kansas prairies blanket over 52 million acres prime soils producing one-fifth America’s wheat and abundant corn/soybean bounties exporting nourishment globally. But owners facing crossroad decisions weighting hectares against evolving lifestyle priorities wonder days left passing before non-core rural asset conversions deliver cash funding journeys ahead unlocking newfound freedoms retirement dreams allow. Industry analysis shows average deal cycles marketing raw land hover 8-16 months given end-user difficulties arranging financing and county approvals before eventually legally deeded properties trade owners satisfying finish lines sale contracts initially signed. 

However specialty cash land buying companies now exist accelerating sales processes for owners prioritizing expedited liquidity events without sacrificing fair values. Recent State reporting indicates dryland cropland averaging $2,130 per acre and native prairie pastureland hovering $1,140 regionally. But direct acquisitions transacted privately with cash buyers often deliver 20-60% premiums above market comps through confidential valuations modeling mineral rights and water reserves also conveyed. Let’s connect discussing options positively impacting plans needing resources sooner maximizing flexibility going forward!

Overview of the Kansas Land Market

The land market in Kansas possesses some unique attributes compared to other states. A few key things to know:

• Kansas has a high percentage of land designated for agricultural use like crops and livestock. There is strong demand for quality farmland.
• Much of the land base consists of rural large acreage parcels rather than small residential lots. These can be more difficult to sell.
• Land prices are historically very affordable compared to coastal states, ranging from $2,000 to $10,000 per acre on average.
• There is less competition among buyers than in other places. Quality marketing is essential to connect with motivated buyers.

When embarking on the process of selling land in Kansas, these market factors should be kept in mind as they can impact timelines and expectations.

Step 1: Evaluate Your Land and Reasons for Selling

Before listing your land for sale, some self-evaluation is required to set yourself up for success.

Assess Your Motivations

First, understand why you want to sell the land. This will help guide decisions later about pricing, timelines, and more.

• Are you no longer using the land and want to cash out your investment?
• Has the land been vacant for a long time with no development plans?
• Do you need money quickly for other financial priorities?

Be honest about your motivations and degree of urgency.

Analyze the Land Details

Next, collect all the details about the land itself:

• Acreage amount
• Whether improved or vacant
• If there are buildings/wells/septic systems
• Road access details
• Income generation potential
• Current zoning restrictions

This information will be needed when marketing the property, so gather it early.

Consider Getting an Appraisal

While not required, getting an official appraisal by a licensed professional can establish fair market value based on recent area sales data and the property’s unique attributes. This takes some guesswork out of pricing.

Step 2: Choose a Real Estate Agent or For Sale By Owner

Once motivated to sell and educated on the property details, next decide on your approach:

Hire a Real Estate Agent

The advantage of enlisting an agent to facilitate the sales process is leveraging their expertise and marketing resources. In Kansas, agents charge around a 6% commission rate. They also have access to MLS listings that widen visibility. The downside is paying fees regardless of sale price achieved.

For Sale by Owner

Alternatively, you can sell the land directly without an intermediary. This allows you to avoid commissions and work directly with interested buyers. However, marketing reach is more limited without MLS access. More work is required on your end to prepare legal documents, show the property, and negotiate.

Land Buying Companies

A third option is selling to a land buying company like Land Boss. These companies purchase properties entirely with cash, simplifying the process. However, they will buy at below full market value after calculating repairs, hold times, and profit targets. The transaction happens much faster though.

Step 3: Price Your Land Appropriately

Setting the right asking price is critical when selling land. Price too high and the property may sit waiting for offers indefinitely. Price too low and you leave money on the table reducing your net proceeds.

Determine Fair Market Value

Examine recent sales of comparable vacant land in the county to gauge current fair market values per acre. Adjust based on whether your property has superior or inferior features. Online valuation tools like Zillow can provide an estimate as well.

Consider Length of Time Willing to Wait

How long you are willing to wait for the property to sell impacts pricing decisions. Expect to market land for up to a year. If your circumstances require fast liquidation, consider asking 10-20% below fair market value. This incentivizes buyers to act quicker.

Weigh Amount of Marketing Work Involved

To sell at full market value requires intensive marketing efforts including advertising online/print media, installing signage, showing to buyers frequently over months, and negotiating offers. If not interested in this work, aim to price on the lower side.

Step 4: Prepare Your Land Listing Details

To generate interest among potential buyers, essential information about the land for sale must be compiled and advertised.

Assemble Legal Property Description

This includes the full legal description from the deed, parcel or lot number, total acreage amount, county name, and owner names. Photocopies of the deed itself listing this information should be made to share.

Draft Up a Fact Sheet

In addition to legal details, create a property fact sheet covering zoning, access details, terrain, previous uses for the land, and the available utilities nearby. Any restrictions or easements should also be noted.

Take Plenty of Photos

They say a picture speaks a thousand words. Quality photos from all angles give buyers a better feel for the property compared to words alone when initially searching online listings.

Obtain Required Disclosures

Certain disclosures about known defects impacting usability may be mandatory to provide upfront in Kansas depending on city or county laws. Stay compliant.

Step 5: Market and Advertise the Land

With all the informational materials prepared, it’s time to broadcast the sale opportunity through various channels.

List on MLS Through Agent or Third-Party Websites

The most popular option is listing for sale on MLS which syndicates the listing across many real estate websites. Third-party land listing sites like Lands of America specifically focus on vacant land.

Place Print Classified Ads

For more localized exposure, ads can be taken out in local newspapers and magazines focused on real estate, farming, or rural lifestyles. Community bulletin boards are another offline option.

Install On-Site Signage

Installing eye-catching For Sale signs right on the property informs anyone passing by of the opportunity. Directional signs placed along the nearest main roads can also guide interest.

Spread the Word Locally

Let friends, family, neighbors and co-workers located in the area know you have land for sale. They may directly know someone interested or help spread the word.

Step 6: Show the Property and Screen Buyers

Once the marketing efforts pay off and potential buyers start making inquiries, the real sales process begins by showing the land.

Pre-Qualify Buyers

Before scheduling showings, have some screening conversations to verify buyers are serious and financially qualified with lending pre-approvals. Ask their intended use for the land as well to find ideal buyers.

Accompany All Showings

To directly answer questions and build rapport, always accompany buyers during property walkthroughs rather than giving unsupervised access. Make note of their reactions and concerns.

Follow-Up Promptly

Quickly follow up with buyers after showings to address any outstanding questions or provide additional details requested. Send formal offers for review as soon as possible.

Negotiate in Good Faith

Be prepared to negotiate fairly should buyers submit offers below the asking price, particularly for properties listed longer term. Avoid rejecting low offers without making counteroffers.

Step 7: Handle Offer Details and Close the Sale

The final step involves navigating the offer process through to a successful closing.

Review All Offers Thoroughly

Carefully examine all details within submitted offers like contingencies, closing timelines, and deposit amounts. Clarify any areas that need discussion.

Make Counteroffers or Accept

If the initial offer isn’t satisfactory, draft a counteroffer adjusting areas like sale price or closing dates. Outline clear reasoning supporting the counter terms. Alternatively, accept if reasonable.

Complete Due Diligence Items

Once under contract, the buyer conducts due diligence like title searches, surveys, or inspections. Facilitate access and provide any documentation needed to satisfy contingencies protecting buyers.

Confirm Closing Details

Work with title companies and lawyers to coordinate signing of closing agreements and movement of money between accounts once all contingencies are removed.

With preparation and patience, following this comprehensive process maximizes the chances of successfully selling your land. Leverage the abundant resources Kansas offers property owners and buyers to transfer assets effectively.

Final Thoughts

Selling land is never a simple process and without the proper steps and considerations, it can be a frustrating experience. The process in Kansas has subtle nuances from other states due to its high concentration of rural and agricultural land. By first evaluating your motivations and land specifics, then choosing the listing method that aligns with priorities, pricing correctly, extensively marketing, showing carefully, and closing effectively, landowners can optimize their chances for success. Ensuring all legal disclosures are made and all contingencies handled responsibly also smooths the journey for both seller and buyer. With plenty of affordable land options available, Kansas remains an ideal destination for those looking to purchase acreage or farmers seeking to expand their operations through thoughtful dealmaking. Paying mind to the unique attributes and sales history of the local land market also produces the best outcomes. There are always risks with substantial property transfers, but through diligence, patience, and integrity, rewarding deals can be secured.

Frequently Asked Questions (FAQs)

Do I need to hire a real estate agent to sell my land in Kansas?

No, you can sell the property on your own through for sale by owner listings. However, agents may expose the land to more buyers and handle the sales process details for you. They typically charge around a 6% commission upon selling.

What selling costs might I pay when selling my Kansas land?

Common closing costs include title insurance fees, property survey expenses, municipality transfer taxes if applicable, legal fees for contract review and document preparation, and real estate commissions if hiring an agent.

How can I determine an appropriate asking price for my Kansas land?

Examine recent sales prices of comparable sized land parcels in your county with similar terrain, access details and zoning restrictions. Also research online land value estimation tools and consider getting a professional appraisal done. Adjust based on unique facets of your specific property.

What information should I gather to effectively market my Kansas land for sale?

You’ll want the full legal property description from the deed, total acreage amount, complete list of property features, parcel number, zoning and access specifics, a plat survey map, copies of required disclosures, and plenty of quality photographs showcasing the land.

What happens if I receive multiple offers when selling my Kansas property?

It’s advisable review all offers thoroughly first before accepting one. You can also consider making counteroffers, starting initial bidding wars to maximize sale price. Ensure you follow applicable state laws if formally accepting back-up offers while another offer is still under contract.

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