Undervaluing — If an agent does not understand the factors that determine land value, a property can be listed for far less than it is worth. Experienced land buyers will recognize an underpriced property quickly, and a sophisticated buyer may use due diligence to uncover—or exaggerate—issues to negotiate the price down even further.
Overvaluing — Being in a “good location” does not automatically make land valuable. If an agent cannot explain why a property is worth its asking price, sophisticated buyers may simply move on. An overpriced property can sit on the market for years, becoming stale and eventually harder to sell.
Improper Advertising — Land needs to be marketed where land buyers actually look. Depending on the property, that may include the local MLS, LoopNet, Crexi, Land.com, and targeted digital advertising. Developers and commercial users are not necessarily searching Zillow for their next development site. Ask your agent specifically where your property will be advertised—and make sure they actually do it.
Being Taken Advantage Of — Land transactions involve zoning, septic, utilities, access, development regulations, and other technical issues that can easily be misunderstood or taken out of context. A buyer may raise a legitimate-sounding issue to negotiate a lower price. An agent who does not understand the issue may simply pass the request along to you rather than recognizing when the argument doesn't hold up.
Conveyance Errors — A residential property can often be identified by its street address. Land frequently requires a precise legal description, and when only a portion of a larger tract is being sold, an accurate plat can be critical. The wrong legal description can result in conveying the wrong property or more property than intended. Real estate conveyance is not something to take lightly—once a deed is recorded, fixing a mistake can be complicated and expensive.
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