Land liquidation sales can be a great opportunity to buy a prime piece of land at a great price. Like any large purchase, you need to do your research. When dealing with a reputable company and professional land consultants, you’ll find that land liquidation sales are the best way to purchase land below market prices. Keep reading to learn exactly how land liquidation sales work, how to research and prepare to attend a sale, and what to expect when attending a one-day land liquidation sale event.
What is a Land Liquidation Sale?
Land liquidation sales are one-day sale events, in which a set group of properties are sold. It is NOT an auction, prices are set and there is no “bidding” involved. All Buyers MUST be present to purchase. Buyers have set appointment times to view the properties, which are sold on a first-come, first-serve basis. There will be 20-30 clients viewing properties at each appointment time. While there are some companies that you may have heard horror stories about (i.e. high-pressure salesman, bait-and-switch properties, or even land that can’t be built on), there are many reputable companies out there that provide a great experience and quality pieces of land at unbelievable prices.
Finding a Reputable Land Liquidation Company
The Compass Land Group scouting out a property for a recent liquidation sale.
The key to finding a reputable land liquidation sale company, is research. A reputable company will be well-established and easy to contact. Be weary of any company that doesn’t provide company information or an address and phone number on their website. A reputable company will welcome phone calls and will be able to answer any questions you may have. When calling about the sale, a reputable company will gladly share details of all properties included in the sale along with property sizes, price ranges, and unique property features.
You’ll also want a guarantee (don’t we all?). Make sure the company you are working with guarantees their properties are buildable. A reputable company will have the properties surveyed in advance of the sale and will have necessary information about building, running utilities, and other important information about the properties included in the sale.
Preparing to Attend a Land Liquidation Sale
The first step to attending the sale is to call and set up your appointment. Since land liquidation sales are not auctions, you have to schedule an appointment for the day of the sale. While you are scheduling your appointment, look for a company that provides professional land consultants. A reputable company will provide consultants that are knowledgeable and honest whose goal is to make sure you show up on sale day knowing exactly what to expect.
Since the sales are typically advertised with one or two featured properties, that best represent all the properties available on sale day, this consultant is key to a good sale experience. A good land consultant can answer any questions you have about the sale, as well as give you information on all the properties that will be included in the sale while helping to guide you to the piece of land that is the best fit for your needs.
There will be no specific details on the location of a sale, including addresses, parcel numbers, or even specific city. A lot of clients are confused about this part. There is a method to the madness. If our team provided this specific information, clients would then be able to find a local Realtor and tour the property prior to the sale date. The problem with that is, because of our below market prices, the properties would get so much attention and it would provoke a “bidding war” which would raise the prices of the property. We pride ourselves on making our properties extremely affordable. It also provides exclusivity to our clients, which is important to us.
The Compass Land Group scouting out a property for a recent liquidation sale.
On sale day the properties will be first-come, first serve and the sale will be booked with other buyers also looking for their dream property. So the more prepared you can be to find your lot and scoop it up before you get there, the more likely it is that you’ll get the land you have your heart set on when sale day comes.
The Day of the Land Liquidation Sale
On the day of the sale you’ll arrive for your appointment at the meeting place provided by the company. To avoid high traffic situations on property, this meeting place will be 5-10 minutes from property, at the nearest establishment that can accommodate a large amount of vehicles.
There will be a check-in tent where you will provide a representative with your name and make/model of your vehicle. You will be assigned a personal sales guide who will meet you at your vehicle at your appointment time. You may choose to join your guide in their vehicle so that they can navigate the property for you and provide information about the property while you drive. This will give you plenty of time to ask questions. This representative will provide a map of all the properties included in the sale and will serve as your tour guide.
Be open to viewing multiple lots in your price range that will fit your preferences. When you find the property you want and are ready to purchase, they will notify the sale leader that the property is sold! Your sales guide will then take you to the contract tent, where you will complete the necessary contracts needed to close on your property. While some companies only pay these representatives a commission on sales (causing a high-pressure buying experience), a reputable company will provide sales representatives that are paid regardless of the sale, which makes for a more pleasant buying experience.
Photo taken by Ben Beshears, Compass Land Group
Keeping an Open Mind
As we mentioned above, land liquidation sales are typically buzzing with buyers all looking to find a great property at a great price, and that means properties sell quickly. There will be multiple properties, ranging in size and price. Make sure you go into the sale with an open mind and have a few properties that you may be interested in.
Come up with a budget range that you feel comfortable with. If the property you had your eye on is already sold, have your sales guide show you other properties that might end up being even more perfect for you! Some buyers attend multiple sales before they purchase their dream property.
Closing Process
After the Sale, a representative will get in touch with you to set a closing date. All Sales are closed with a legitimate and certified Closing Attorney. It is a legitimate land purchase, so you will receive a Deed to your property after closing. All Mineral, Gas, Oil, Water, and Timber Rights will be conveyed with your purchase, just as a typical land transaction. You do not have to be present for closing, but you will receive paperwork to complete and have notarized prior to your closing date.
Life is better with a view, Own It!
Now that you know how land liquidation sales work, how to find a reputable land liquidation sale company, and what to expect when you attend a sale, we hope you feel more confident than ever to go out and find your dream property! If you’d like to learn more about Land Liquidation Sales, or if you’re looking for your dream property in North Carolina, contact Compass Land and Real Estate today for a free, no-pressure consultation.