According to Texas Land Trends, around 95% of the land in Texas is privately owned. With the rise in population and the recent upsurge due to the coronavirus, an increasing number of people are moving to Texas.
We live in a great state, no wonder why so many people are moving here. Texas is the home of no state taxes, large parcels of land for purchase, and more bang for your buck home prices compared to other states.
So if you are a landowner seeking to sell your land by owner in Texas, this blog post is for you.
With that said, keep in mind that the process of selling land might not be as simple as it seems.
Unlike selling a product online, selling your land in a large city like Texas can be extremely complicated, if you don’t know what to do, or you don’t have someone to help you with the process.
But don’t worry, you’re not alone in this challenging situation. With our short guide on the documents needed to sell land by owner in Texas, you can take the easy route for selling your land.
Documents need to sell land by owner in Texas
The documents required to sell a property are one of the most important parts of a land selling/purchasing process. You can’t perform this process safely and authentically without having the correct documents. As a landowner who wants to sell their land in Texas, you’ll need the following documents:
- Purchase Agreement:
A purchase agreement is very important, and it’s required to sell any real property. It is a binding contract between a buyer and seller that outlines the details of a real property sale transaction. The buyer will propose the conditions of the contract, including their offer price, which the seller will then either agree to, reject or negotiate. The negotiating process can go back and forth until both parties are satisfied. Once an agreement is reached, both buyer and seller signs the agreement, then it is “considered under contract”
A purchase agreement includes:
- Buyer and seller information
- Property details
- Pricing and financing details
- Closing and date of possession
- Earnest money, deposit amount due
- Closing costs and the party responsible for playing
- Contract contingencies
- Conditions under which the contract can be terminated
Another important document needed to sell land by owner in Texas is a seller’s disclosure.
The seller’s disclosure form is filled out by the seller, providing information about the condition of the property, which benefits both buyer and seller.
Simply put, this document will mention the flaws (if any) in your property, which might affect the property’s value. Due to this reason, this makes the disclosure document much-needed when it comes to fairly and lawfully selling land in Texas.
- Contracts for Sale
The contract for sale is a written legal document, or agreement between the buyer and seller in a real estate transaction. A contract of sale is used in the purchase of land, a house, an apartment building, a commercial building, or any other form of real estate.
The deed is the most important document when transferring land from your name to someone else’s. Being a seller, you need to present this document to the buyer when he/she is paying for the property. Whether the buyer pays cash or finances the property, the need will be given to the new property owner.
Recording deeds is a system of recording legal instruments at the Recorder of Deeds. The Recorder of Deeds can be accessed at your local government office that maintains records and documents relating to real estate ownership.
- Closing Statement:
Once the seller has financed the deal, the final document needed to sell land by the owner in Texas is the closing statement. This statement includes:
- Schedule of payments
- A copy of the property insurance
- The property’s topographical map
You can get one such statement with the help of an attorney or title agency.
Steps to Selling Land by Owner in Texas:
Now that you’re fully aware of all the documents you will need to sell your land in Texas, let’s move to the next important step in this process. Don’t get it? Well, we’re talking about the step-by-step procedure of understanding what goes into selling your land without any complications. So let’s go ahead and explore that below in more detail.
What is for Sale by Owner FSBO?
Once you enter the land selling market, you might have surely heard about the FSBO methodology of listing your property, right? But do you know enough of it to get started and list your property/land for sale in the right way? If not, here are a few things you need to consider before making an FSBO sale of your land:
- Your property market
- Accurate information regarding the market rates and other details
Once you have gathered the documents needed to sell land by the owner in Texas and understood these details carefully, you can easily sell your land without going through any complications. Moreover, while the attorney isn’t crucial in selling your land, you may need to state-specific disclosures while following the FSBO method. These disclosures are of:
- Seller’s property
- Property tax summary
- Statement of the flood zone
- Pain disclosure (lead-based)
While all this is a necessary part of FSBO, you can also gain specific land listing benefits through the FSBO method. These benefits can include:
- Setting an FSBO yard sign (so that better offers/options can be gathered before selling the land)
- With all this, you may also have a competitive commission of up to 2.6-3.0%. This commission goes to the buyer’s agent.
How to List your Land for Sale?
Apart from the basics of FSBO for listing your house and finalizing a suitable price, it’s time to have your land/property listed. Don’t worry; it’s not as complicated as it may seem, as you only need to define your property in the best way possible.
Simply put, the listing process of your land requires a listing description. In this description, you may need to focus on:
- Key features of your property
- Why your property is a better option for the buyer
- What other offers (i.e., negotiation, discount, etc.) are you offering – if any.
With this listing description, you can easily grab your target audience’s attention and make the buyers more interested in purchasing your land/property.
Once you have written the listing description, it’s time you make it familiarized in the market and among the potential buyers. Now, what can be a better way to do that apart from advertising?
Wait! Before you look for any random advertising and posting source for your listing, make sure you don’t miss out on the potential and beneficial options. This mainly includes advertising/posting your listing through:
- A yard sign (showing sale)
- The craigslist
- Posting on the FSBO website opting for the flat-fee MLS companies for posting and advertising among their audience.
Pros and Cons of FSBO:
Before you even consider the FSBO method of listing your land/property, are you sure you can rely on this method? While it may be a familiarized option in the residential market, you can’t make a blind decision. Hence, understanding the advantages and disadvantages that come along with FSBO can be crucial – especially if you’re selling your land for the first time in Texas.
● You’re the boss here. You can control the price, listing, schedule, marketing tactics, and the potential buyer you want to sell your property. It’s all in your hands, and you can decide according to your ease/need
● As mentioned earlier, the only commission you need to pay is for the buyer’s agent. Apart from that, you don’t have to spend extra money on paying agents from your side. So it’s more like a saving method of selling your land.
● There’s no competition. Yes, when you’re listing your property through the FSBO method, you’re simply more weighed towards finding the best option rather than being one among other options.
● Being an FSBO seller for your land can take a hefty amount of time. It is more like a full-time job, so you need to be fully prepared to handle everything independently.
● Safety is in your own hands. Since you’re the only one handling everything in the process of selling your land in Texas as an FSBO seller, you will be responsible for your property’s safety. So make sure you’re prepared for that.
● Your decision will decide whether you made a smart move or not. So while setting your house’s pricing and listing, make sure you’re not confused or too demanding. It’s more about acting smart to avoid making lower offers.
While selling land in Texas can be struggling if you’re new at this, but you can still avoid most of the struggles and complications with this detailed guide on selling land in Texas. So go ahead, follow these steps, and get the best deal for your land! Happy Selling!