Hi, I’m Beth with TB Properties Buys Land. This is the fourth video in a series of videos answering the question, what can influence the offer price when you’re selling your vacant land to a land investor? You can refer back to the earlier videos where we discuss access to your property, topography, as well as market comps for your property. Another issue that people often neglect to look at is if your property falls into a POA, (property owners association), or if there are CCRs, which are covenants, conditions and restrictions, and how that can affect the value of your property. This is really subjective because for some people, they might like those CCRs or that POA, the value that it brings, and others may hate it. It is definitely something to consider when it comes to selling your property.
When we look at, say, a POA, the big thing that we want to look at is what’s the value that it’s bringing? Are they maintaining roads? Is there an area for people to go and shower or maybe even stay the night? But what’s also the cost of that POA? If you’ve got a high POA cost and they’re providing very little value, that can be a big negative. Now, often with POAs, they will have their own CCRs. Some properties may not have a POA, but they have CCRs. We want to look at those CCRs when buying a property. What are the restrictions on buying your property? Again, for some people they may appreciate that those CCRs are limiting people from being able to have a couch out on their property and turning it to a dumpster. Now, others may hate that those restrictions are in place. They may want zero restrictions. It’s very subjective.
On another hand, some may appreciate that it’s keeping it clean and providing uniformity, it’s making everything hold its value. But to other groups of people, they may resent the fact that those CCRs or that POA is in their business and telling them they can’t have a home bigger than 2,000 square feet, or their home has to be a minimum of a thousand square feet. Or they have setbacks, they’re not allowed to have more than a 2-story home, or they can’t have more than one shed. Some CCRs even limit what you can do on your property, perhaps prohibiting you from operating your business from your land property. As you can see, when it comes to looking at the value of your property, there are many things that can affect the offer price that, say, TB Properties Buys Land would offer you on your vacant land.
As mentioned in the previous videos, we examine the access, we look at the comps in the area, we evaluate the topography, and we will look at those CCRs and that POA when we make a decision. Now, if you’ve got vacant land property that you’re interested in selling, please reach out to us. We purchase property all over the country, generally 10 plus acres. We always close through a title company for your safety and security, and we close quickly. Give us a call, shoot us an email, or fill out the form on our website. We look forward to working with you. Thanks again for listening.