Key takeaways
- Land is priced from comparable sales on a per-acre or per-lot basis, then adjusted for access, utilities, buildability, and parcel size.
- A ready-made due diligence package with survey, zoning, access, utilities, soils, and flood zone answers buyers' questions before they ask and speeds up the sale.
- Adjacent neighbors, local builders, and investors are often the best buyers, and many can be reached directly through county records.
- Owner financing widens your buyer pool because land loans are harder to get, and an installment sale can spread out your taxable gain.
- Vacant land is a favorite target for seller impersonation fraud, so verify every party and close through a title company or attorney.
This guide is for owners selling vacant land, a buildable lot, farmland, or recreational acreage without a listing agent. After reading it, you’ll be able to price your parcel from real comparables, assemble the due diligence package serious buyers expect, market to the people most likely to buy, and decide whether owner financing makes sense.
Know what kind of land you’re selling
Buyers shop for land by what they can do with it, so define your parcel the same way:
- Buildable residential lots: in a subdivision or on a road with utilities nearby. Buyers are future homeowners and small builders.
- Rural acreage: larger tracts for a homestead, hobby farm, or privacy. Buyers care about access, water, and septic feasibility.
- Recreational land: hunting, camping, or timber parcels. Buyers care about wildlife, terrain, and access rights.
- Agricultural land: cropland and pasture. Buyers look at soils, water, and current leases.
- Infill and commercial parcels: priced on zoning and development potential. Buyers are developers and investors.
Price it from comparable sales
Land has fewer comparable sales than houses, and no two parcels are identical, so you’ll lean on per-unit math.
- Pull sales of similar parcels from the last 12 to 24 months through your county’s property records or assessor search.
- Convert each sale to price per acre (or per lot or per front foot for small lots).
- Adjust for differences: road frontage, utilities, slope, wetlands, views, and especially size.
- Apply the adjusted range to your acreage.
Here’s an illustrative example for a 14-acre rural parcel:
| Comparable | Acres | Sale price | Price per acre | Notes |
|---|---|---|---|---|
| Comp A | 12 | $96,000 | $8,000 | Similar road frontage, power at road |
| Comp B | 20 | $150,000 | $7,500 | Larger, so lower per-acre price |
| Comp C | 5 | $55,000 | $11,000 | Small parcel premium; not directly comparable |
| Subject | 14 | $105,000 to $119,000 | $7,500 to $8,500 | Weighted toward A and B |
Notice that Comp C sold for far more per acre. Smaller parcels usually command a higher per-acre price, so weight the comps closest to your size. If your parcel has no legal access or a failed perc test, expect a steep discount from any of these numbers.
Build a due diligence package
Most land buyers lose interest when they can’t quickly answer, “What can I build here, and what will it cost to get utilities?” Answer it for them. Gather these items before you list:
- Survey: a boundary survey with marked corners, or at least the recorded plat. If none exists, a new survey is often the best money you’ll spend.
- Deed and legal description: a copy of your vesting deed and any easements, covenants, or restrictions recorded against the parcel.
- Zoning and permitted uses: confirm the zoning district, minimum lot size, setbacks, and whether a home, mobile home, or barn is allowed. A short note from the county planning office is gold.
- Legal access: road frontage on a public road, or a recorded easement. Physical access over a neighbor’s driveway isn’t the same as legal access.
- Utilities: distance to the nearest power line, public water or need for a well, public sewer or need for septic, and internet availability.
- Perc test or soil evaluation: if there’s no sewer, this shows whether a conventional septic system can work. The county health department or a licensed soil professional usually performs it.
- Flood zone: look up the parcel on FEMA’s Flood Map Service Center and save the map panel. Land in a high-risk special flood hazard area can still sell, but buyers with federally backed mortgages will generally need flood insurance.
- Soils: the USDA’s free Web Soil Survey shows soil types and their limits for septic systems, building, and farming.
- Taxes and special status: current annual property tax, and whether the land has an agricultural or forestry tax break that could trigger rollback taxes when it changes use.
- Mineral, timber, and water rights: what you own and what conveys.
The most common deal-killers are no recorded legal access, a failed perc test, wetlands covering the building site, uncertain boundaries, and unpaid back taxes. If your package turns up one of these, deal with it before you list: negotiate an access easement with a neighbor, get an engineered septic design quote, or simply price the land for what it is. A buyer who discovers a problem late will either walk away or ask for a bigger discount than the problem actually costs.
Put everything in one shared folder and link it from your listing. It signals that you’re organized, and it shortens the buyer’s due diligence period.
Market to the right buyers
Land buyers are a narrower audience than home buyers, so target them deliberately.
- Adjacent neighbors: often the most motivated buyers, because your parcel adds privacy or acreage to theirs. Find them on the county GIS map and send a short letter with the price and a map.
- Local builders: a buildable lot with utilities is inventory for them. Call the builders whose signs you see in nearby subdivisions.
- Investors and developers: for larger tracts or infill parcels with rezoning potential.
- Farmers, hunters, and recreational buyers: reach them through local farm and outdoor networks and community boards.
Your listing should include drone or elevated photos, a map with boundary lines drawn over an aerial image, GPS coordinates of the entrance, the parcel ID, and a one-paragraph summary of what can be built. You can list your land free on ByOwners.com and link your due diligence folder.
Owner financing for land
Many buyers struggle to finance raw land through banks, which often require larger down payments for land than for homes. Offering terms can bring in more buyers and support a stronger price.
Illustrative example: You sell the 14-acre parcel for $120,000 with 20% down ($24,000) and finance $96,000 at 8% interest over 10 years. The buyer pays about $1,165 a month, and you collect roughly $43,800 in interest over the life of the loan.
Protect yourself:
- Require a meaningful down payment so the buyer has real money at stake.
- Use a promissory note secured by a recorded mortgage or deed of trust, rather than an informal handshake.
- Run a credit check and set clear late-payment and default terms.
- Consider a third-party loan servicer to collect payments and keep records.
- Have an attorney draft the documents. Lending laws can apply to some seller-financed deals, especially if a dwelling is involved, and foreclosure procedures vary by state.
On taxes, IRS Publication 537 explains the installment method: you generally report your gain as payments come in rather than all in the year of sale, and the interest you receive is taxed as ordinary income each year. Our owner financing guide covers note terms in more detail.
Guard against seller impersonation fraud
Vacant land is a top target for fraud. In June 2026, the FBI warned that criminals use fake IDs, new email accounts, and internet phone numbers to pose as owners of vacant parcels, often using information pulled from public county records, then hire real agents and title companies to sell land they don’t own. Their tell-tale signs: pushing for a quick sale, accepting offers well below market, and never appearing in person or on video.
As an owner, sign up for your county recorder’s property fraud alert if it offers one, and check your county records from time to time. Expect your title company to verify your identity carefully, and cooperate; it protects you. As a buyer of land, always close through a title company or attorney and buy owner’s title insurance.
Closing the sale
Land closings are usually simpler than home closings because there’s no inspection or appraisal of a structure, but the essentials are the same:
- Purchase agreement: price, deposit, due diligence period, and contingencies such as a perc test, survey, or rezoning approval.
- Title work: a title search and owner’s policy, plus a plan to clear any liens or old easements.
- Deed: a general warranty deed gives the buyer the most protection; a special warranty or quitclaim deed shifts more risk to the buyer.
- Prorations: property taxes, and any rollback tax if the land is leaving a special tax status.
- Recording: the deed and any mortgage or deed of trust get recorded with the county.
Rules vary by state, so confirm the closing process, deed form, and any land-use approvals with a local real estate attorney.
Next steps
- List your land for free and link your due diligence package.
- Learn how to structure terms in owner financing explained.
- See what to expect at the table in closing a for-sale-by-owner sale.
- Find a vetted surveyor, title company, or attorney near your parcel.
Frequently asked questions
How do I figure out what my land is worth?
Find recent sales of similar parcels in your county, convert each to a price per acre or per lot, and adjust for differences in access, utilities, topography, and size. Smaller parcels usually sell for more per acre than large ones.
What is a perc test and do I need one?
A percolation test measures how quickly water drains into the soil to show whether a septic system can work. If the land has no public sewer and buyers will want to build, a passing perc test or soil evaluation makes it far easier to sell.
How do I check if my land is in a flood zone?
Look up the parcel on FEMA's Flood Map Service Center. If it's in a high-risk special flood hazard area, a buyer with a federally backed mortgage will generally need flood insurance, which affects what they can pay.
Should I offer owner financing on land?
It's worth considering. Many buyers struggle to get bank loans for raw land, so offering terms can bring more buyers and a higher price. Protect yourself with a meaningful down payment, a recorded mortgage or deed of trust, and documents drafted by an attorney.
How do I report the sale of land on my taxes?
Land held for investment usually produces a capital gain. If you finance the sale and receive payments over time, the installment method generally lets you report gain as you're paid, while interest is taxed as ordinary income.
Sources
- FEMA Flood Map Service Center
- U.S. EPA, Septic Systems
- USDA Natural Resources Conservation Service, Web Soil Survey
- FBI Internet Crime Complaint Center, PSA on Real Estate Seller Impersonation Fraud (June 2026)
- IRS Publication 537, Installment Sales