Hi Everyone! What’s the average time you’re seeing to sell vacant land properties you own or have under contract?
I realize it’s different for every market, but I want to have realistic expectations in my cash flow budget. Feel free to include the general area where you’re investing or not.
Thanks! JP!
@jp As you mentioned, it has a lot to do with the market, the property, the price, the advertising, and other variables, but in my experience, when I’m doing everything reasonably well, 3 months has been a pretty average turnaround time.
Check the data. If there are more sold in the area than for sale, then it might be a good spot. What is the ratio within the last 3 months? The numbers will guide you as to what the average sale time could be, but it ultimately depends upon your marketing campaigns.
My average is 81.6 days (almost 3 months) over the last 4 years. I calculate the number of days as the close date of the purchase of the property to the close date of the sale of the property. So, essentially that is the time I have money invested in the deal because I’m wiring money a day or two before the purchase and I receive the sale proceeds the day of close. My shortest holding time was 8 days, and the longest was 511 days (that was a tough one to sell.) My shortest holding times are those where I self close the purchase. I’ve found that things seem to be cooling off a bit in 2022, and the average holding time in 2022 is around 100 days.
@billwalker I am new here, but I have heard from some land flippers that it takes 2 weeks to close, one of the perks of selling to an investor right? There’s no lender, etc. In a regular real estate home transaction (with a realtor and lender, it is 30 days.) I understand there are alot of factors there, but just saying that for comparison.
So do you go with 30 days in the contract and just extend it? And is the seller always aware that the contract is being sold? Thanks!