More building on the land?
5 important tips for selling your lot (Photo: ShutterStock)
Did you purchase land for investment 10 years ago and decided that now is the time to reap the rewards?
Did you inherit a plot of land in a suburb in the south and realized that this is a good opportunity to fulfill your grandmother's will and close the suffocating mortgage?
excellent.
Now all you have to do is sell the lot you own.
How do you do it you ask?
You have come to the right place.
For a start, it is important that you understand that selling land is not the same as selling an apartment - it is a different target audience and mainly a smaller one.
So just before you post an ad for the sale of a lot on social networks,
it is important that you know the 5 most important tips for selling a lot:
In the first stage - the expenses were taught
Selling land these days may be accompanied by particularly high tax payments.
Therefore, it is important to learn before selling the lot what the expenses involved in the process are, in terms of taxes and other payments.
The most significant tax in the sale of land is the appreciation tax - which is paid according to the difference between the amount for which the land was purchased in the past and the current value of the land, minus the expenses incurred for its improvement.
The appreciation tax may reach extremely high amounts, and even negate the viability of the transaction, thus causing its cancellation.
However, don't give up - a careful examination of the issue or using the services of experts in the field of real estate will teach you that it is possible to save significant amounts of money, until receiving a full exemption from the payment of the appreciation tax, thereby significantly increasing the viability of the transaction.
In addition to the appreciation tax, there are other taxes, fees and levies that are required by the authorities in certain cases, and it is important to take them into account before selling the lot, such as the improvement levy, development levy, permit fees, capitalization fees and possible fines with the authorities.
Know the difference between administration land and private land
Know that most of the land in Israel, and probably also the land that is "owned" by you, is actually owned by the state, and you, or your ancestors, purchased the rights to it for a lease period.
What is a lease?
Long term rental.
In these cases even very long.
A residential land lease from the administration usually lasts 49 years with an option to lease another 49 years at the end.
Another difference and relevant to the sale of the land is the issue of lease fees.
Even in the case of leasing the land from the administration, similar to paying rent to the owner of the property, the administration charges you a lease fee, or a capitalization fee (payment of the rent in advance).
Therefore, it is important to check whether the land you own is indeed your private property or is leased from the Israel Land Administration.
If it is leased - make sure that you have no fines or debts towards the administration before selling the lot.
More in Walla!
The breakthroughs, the treatments and what does the future hold?
Everything you need to know about diabetes
In collaboration with Sanofi
Check the real estate registration status: are you the legal and exclusive owner of the land?
Before you rush to take ownership of the land and offer it for sale to anyone, you must make sure that it is properly registered in your name.
Especially in cases of ownership of land or plots of land from the founding of the state that is transferred in a will, and even though you are the ones who actually own the land, it is important to check the registration and the rights to the land in the land registers (taboo text), and make sure that indeed, you are entitled to negotiate the sale of the property.
If you find problematic records in the Land Registry, you must complete the procedures that regulate your official ownership of the land.
In cases where you received the land or lot as an inheritance, before the sale you must act to issue a confirmation of inheritance order and make sure that you are indeed the sole heirs of the land, or alternatively make a land sharing agreement between the heirs.
Only after verifying the legal ownership and obtaining the necessary permits can you sell the property.
Of course, all of these must be done with the guidance and legal advice of real estate experts.
Correctly estimate the real value of the land
When you sell a residential apartment in a building, for example, you have the opportunity to compare the other apartments in the neighborhood, on the street and even in the building, thereby assessing the value of the apartment and deciding in an intelligent way what is the initial price you demand for it.
Making a comparison between land and land is a slightly different and more complex story, since you do not have the possibility to go between the lands in the area and evaluate the value of the lot in your possession.
Unlike a transaction for the sale of a residential apartment, in which the appraisal of the value of the apartment is usually significant for the buyer who wants to make sure that he pays a reasonable amount for the property - the appraisal of the value of the land is also significant for the seller. Therefore, before the negotiations, it is important to hire the services of a qualified real estate appraiser who will perform tests on the quality of the land , the degree of suitability for construction and, of course, which rights exist on the land at the current stage and which are expected to be received in the future.
If the appraiser presents a figure that predicts an improvement in the land due to the chances of settlement, increased building rights, a broader outline plan in the area, etc., it is advisable to market the sale of the land accordingly and increase the price tag.
Do things correctly and legally while consulting with experts
As you probably already understood, selling a lot or land is not like selling a residential apartment.
This is a different industry that requires unique preparation and a different path.
Remember that when things are done professionally and accompanied by the right professionals step by step - you can expect a minimum of malfunctions and surprises.
Therefore, do not hesitate in choosing the professionals who will accompany you during the sale of the lot or land.
Check carefully who are the professionals you choose to work with and that they hold an appropriate valid license.
Although the only person you can trust is you - try not to rely on personal feelings only, but on a wide range of recommendations and receipts.
This is especially important in a field you do not understand.
Real estate
Real estate magazine
Tags
real estate
