Selling land to a developer or builder

What do builders and developers look for in land?

Builders and developers buy land they can turn into homes or other projects at a profit. They check these points first.

• Location near demand, such as jobs, schools and growing towns.
• Zoning that allows their plan, or a realistic path to a rezoning.
• Water, sewer and power at or near the site.
• Legal road access.
• Land that is flat enough and dry enough to build on.
• Clear title.

Do builders buy raw land?

Builders do buy raw land, but usually on conditions that let them seek approvals before they close. Land that already has its approvals is called entitled land, and builders pay the most attention to it because it carries less risk.

If your parcel has no approvals, ask the builder what they expect to spend and how long they expect it to take. Do not accept a vague answer. Our guide on what land entitlement is explains the approvals.

How do option and contingent deals with builders work?

Builders usually tie up raw land with an option agreement or a contingent purchase contract, not a quick closing. A letter of intent often comes first and is usually non-binding, per a ProBuilder article on land acquisition.

An option gives the builder the right to buy within a set period at a set price. Cornell's Legal Information Institute explains that the seller cannot revoke the offer during that period. In a straight option, the seller keeps the option payment if the builder does not buy.

A contingent contract usually binds both sides at signing, but the builder's duty to close waits on conditions such as feasibility, approvals and appeal periods. Large parcels may close in stages under a rolling option, with each piece priced in writing.

What are the risks of selling to a developer?

Time is the biggest risk of selling to a developer. While the land is under option or contract, you usually cannot sell it to someone else. If the builder walks away, you may be back at the start months later.

Read these terms with a real estate attorney before you sign.

• How long the option or review period runs, and how it can be extended.
• What the builder pays you for the time, and whether you keep it if the deal ends.
• Which approvals must come through before closing.
• Whether the price changes if the builder finds problems.
• If you carry financing, whether a construction lender would rank ahead of you.

How do you find the right builder?

The right builder is one who has bought land near yours and can show it. Large builders buy through land teams, not front desks. Small local builders may want only a few lots.

Ask each buyer what they bought nearby, then confirm the deeds in county records. Get offers in writing and compare the terms, not just the price. Ask how they will pay and what happens if approvals take longer than planned.

When is a quick cash sale better than a builder deal?

A quick cash sale is better when you need the money soon or cannot afford a deal that falls through. It also fits land with no utilities or path to approval. A builder deal can win on price when the land has real development potential and you can wait.

Compare your likely net from each path with the net proceeds calculator. Our guide to how to value vacant land shows how to check a price.

How does Liberty Acres buy development land?

Liberty Acres is a family-owned land company. We buy land anywhere in the US, in any condition, and close through a title company. We pay back taxes and all closing costs, with no agents and no commissions. We can close in as little as 14 days. Most sales close within a few weeks to a few months, once the title work is done. For larger parcels with development potential, we can sign terms that allow time for zoning and entitlement work. You keep title until closing, and the price can reflect the added value. Send us the county and parcel number to start.

Common questions