As a landowner in Chicago, you may have spent some time on the fence deciding if you should sell or hold your land. The answer isn’t always straightforward, there are quite a few variables to consider. In our latest blog post, we will ask a few questions to help you decide if you should hold or sell your land in Chicago!
For many landowners, the decision to hold or sell is one of the toughest they will face. You will need to consider a few key elements such as finances, future use, and market trends.
Why Do You Own The Land In The First Place?
Maybe you have thought about building. If you are holding land, in hopes of building in the future, you need to ask yourself if it’s really worth it. If you do not have concrete plans in place to build, it might make sense to find another piece of land when the time has come to actually break ground.
If building a home is in your future, make sure you have completed a financial analysis of what it will cost to develop the land. In addition to the cost of the structure itself, you must consider things like permits, soil testing, grading, running utilities, surveys, drilling, paving, impact fees, landscaping and more.
Or maybe the land was an investment. Is there somewhere you could better invest the money? You land might be appreciating over time, then again, it might not. If it’s returns you’re after, you might want to consider properties that can provide a steady income stream.
Sometimes people receive land as part of an inheritance or settlement. You might enjoy the idea of having land in your name. However, it might make sense to sell your Chicago land and use the proceeds in a way that better serves you.
What Does Owning The Land Cost You?
The cost of owning land is much lower than owning a structure. However, there are still out-of-pocket expenses to contend with. You will have to pay taxes each year as well as any needed maintenance on the property. Depending on the location of the lot, the city might require the land to be kept clear as to avoid overgrowth.
In addition to taxes and maintenance costs, you will have “opportunity costs” to consider. While your money is tied up in land, you could very well be missing out on more lucrative investments. It will likely take years before you see real profits from owning land.
What Will Selling Your Chicago Land Really Cost You?
Selling Chicago land can be tough. There simply isn’t as large of a market for vacant land as there is for housing. If you decide to list your land with a Chicago agent, you will have to pay their fees and commissions just like the sale of a house. You will also have to wait around to receive your money. Land can sit on the market for months at a time.
Another popular option to sell your Chicago land, is to work with a direct buyer such as Luxdoor Invest. When you choose to sell directly, you won’t have to contend with fees, commissions or any of the other hassles of listing. When you sell to us, there is waiting around. We can close very quickly, allowing you to turn your unused Chicago land into cash right away!