Even people outside of the real estate industry know the importance of location and land when purchasing a home. It’s as they say — “Location, location, location.” Even the value of a beautiful house may drastically decrease if the surrounding area is unsafe or the land is unsuitable.
If you wish to succeed as a real estate agent, you must understand the physical characteristics of land not only to pass your real estate exam but to close more sales after you have obtained your license. Buyers want expert guidance as they choose a property, so put them at ease by understanding the land in your portfolio inside and out.
Are you ready to kick off your real estate career and capitalize on the booming housing market? Let’s expand upon the importance of the physical characteristics of land and how you can use this knowledge to your advantage in the real estate industry.
What Are the Physical Characteristics of Land in Real Estate?
While real estate agents may direct most of their attention towards the characteristics of the home itself, the qualities of the surrounding parcel can also affect the property’s value, plus serve as potential selling points. So when realtors observe the physical characteristics of land, it allows them to develop a better understanding of the land’s value. In the real estate industry, there are three distinct physical characteristics of land to keep in mind.
In real estate, the term “immobility” refers to the fact that the land cannot be transported from one place to another. Essentially, while the home may be subject to improvements and construction, the land itself cannot be physically relocated. As a result, the location of land significantly affects the asking price and demand. In addition, the land significantly affects property taxes. Due to immobility’s nature, the buildings and area surrounding the land also directly impact its inherent value, demand, and cost to obtain — for better or for worse. When considering the immobility of a property in your portfolio, consider its proximity to amenities as selling points for your next sales pitch.
Land is generally considered indestructible and permanent, but the appearance of a parcel of land may transform according to developments surrounding it. Given the indestructibility of land, property insurance doesn’t account for the land itself, only covering improvements that homeowners make on the land. For instance, if the home on a plot of land is destroyed due to a natural disaster, the value of the home is gone, but the value of the actual land is the same. When looking for selling points in the indestructibility of a property, consider its more permanent natural features, such as acreage, bodies of water, and road accessibility.
Lastly, non-homogeneity is another critical aspect of land. In the real estate industry, non-homogeneity refers to how each parcel of land is different from the next. Although two houses may appear the same — particularly in a mass-build subdivision — they are different from one another simply because each home exists on a separate plot of land. Consider two houses with similar physical characteristics in different locations. If one home occupies a corner lot, then this home may be valued higher than the other solely due to the features of the land. Examining the non-homogeneity of land can be a useful tool to make your property seem like a stand-out property in its neighborhood.
Why Realtors Must Understand the Physical Characteristics of Land
Passing your real estate exam can be stressful enough. Ensure that you are adequately prepared by understanding the different physical characteristics of the land and their effect on property values. Remember, when buyers purchase a property, they also buy the land on which the property exists. No matter how nice the house may be, the physical characteristics of the land will impact your ability to sell a home.
Different plots of land are also valued differently between generations. As you begin your career in the real estate industry, keep in mind your target demographics. Millennials, aka people between the ages of 25 to 40 years old, generally desire homes that are on land near top-rated schools, adequate transportation, and provide a sense of community. In contrast, Boomers, who are between the ages of 57 and 66, prefer the ambiance of a quiet suburban neighborhood. Familiarize yourself with the physical characteristics that make land attractive and embody a “good location” for each client to enhance your ability to sell more homes.
How to Use the Physical Characteristics of the Land as Selling Points
Once you have identified qualified leads through your marketing efforts and lead-generating partnerships, now it’s time to persuade them to buy.
Consider what physical characteristics they may be looking for within the land of their property. Adequately research the land on which the property is located. You will need to gather information about nearby schools, employment opportunities, and recreational activities. In addition, educate yourself about which freeways the land is in proximity to and whether or not the land is near the city center.
Even among the warmest of leads, the location of the land can make or break your sale. While some buyers may have a family and desire to be near top-rated schools, other buyers may prioritize proximity to nightlife. Furthermore, many buyers prefer to be close to their workplace or extended family, so keep these personal details in mind when attempting to close a deal.
While you cannot alter the location of a parcel of land, ensure that the land looks its best before you present it to a potential buyer. Just as you would stage a home before viewing, make sure that the physical characteristics of the land are clean and polished. Ensure that the grass is well-kept and the land is free of trash. For an extra boost to curb appeal, some sellers may choose to work with a professional landscaping company, which will plant foliage that suits the physical characteristics of the land.
Call Motivated Sellers
The location and physical characteristics of the land play a pivotal role in a realtor’s ability to sell a property. Don’t let a sale slip through your fingers by overlooking potential selling points. And don’t let a prime parcel languish while you waste your precious time on exhausting lead generation. Keeping your viewing schedule packed with Call Motivated Sellers, putting you in touch with more qualified leads than ever before.
Call Motivated Sellers can raise your sales to unprecedented heights during both the busy and slow months. We are an American-based real estate cold calling service, complete with a highly skilled sales staff. Leave the hard work of vetting your leads to us so that you can focus on closing deals and increasing profits. By partnering with Call Motivated Sellers, you can augment your other marketing efforts and expand your reach without losing that human touch.
Ready to uncover new leads for your real estate business? Contact our team today!
Marketing by Joseph Studios