How does land pricing work in less regulated markets? What should I do to sell my land at a good price?

There’s no mechanism here that standardizes prices in an area. There’s no public sales records. There’s no mechanism to officially put a property on the market. Neighboring plots can have insanely different sales prices that seem crazy.

Is there a similar market you’re familiar with? I’m just hoping there is because I’d like to learn how pricing works in such markets. I’d appreciate it if you could explain so I can have a better idea about when and how to sell my land.

Also if you know about this topic, I’d really appreciate your feedback on my ideas below related to selling my land.

Context: This is agricultural land. Located in the 2nd largest city of the country. Far from city center. Close to country’s 5th largest industrial zone so it might 3x-40x in value (in today’s dollars) in 2-4 decades. It’s good for solar. Close to a major stream in a 163K km² of region which has semi-arid continental climate. In a country where land is scarce (Country is highly mountainous. Most people live in flats).

Idea 1)

• Split it into 50 parts. Handle road, water, electricity, basic security. Sell them as hobby garden. This idea is based on the listings in my area but I am wondering if it’s realistic? Garden listings 5-9/m2. Regular listings 2-4/m2.

• I have some ideas like creating a waiting list people can join with deposit. Requiring interview or reference to join to ensure people have nice neighbors (a selling point). Starting the physical part of the project only after I have 200 people in the waiting list and returning 150 deposits once sales are done.

• Might try offering commission to doctors, dentists, lawyers etc who have large IG followings. Might try to turn this into more of a community thing. I can find producers of motorhomes, trees, organic food, decoration items, etc and I can connect producers with buyers for a commission.

• I don’t mind working on this for 70 hours/week but I don’t know if I can pull it off.

Idea 2)

• Sell it to a foreign investor. Only 1 in 1000 people have $1m NW in this country —vs— 1 in 10 people in the US. So finding a foreign buyer might be easier. I think my main problem is that I don’t know how to contact foreigners in a way that makes sense. Thoughts?

• To sell, I can create some good presentations about the land, location, city, country and it’s geopolitics. I can compare it to other markets e.g show how real estate market performed during 2008 crisis in the west vs here.

• To increase the price, I can include my long term help after the sale. Elaboration on that help: [[ I lived here and a few other countries, so I know the differences in way of doing things. I might be able to help with dealing with government institutions, taxation, legal tax minization, finding good lawyers, proper documentation in case buyer’s source of wealth is questioned in the future and so on. — I do my best to avoid relying on one single government, jurisdiction or geography as a place to invest in, live in and emotionally attach to, so buyer and I might have similar goals/views already, which might make it easier to sell ]].

• More context: This is a BADLY marketed country that has excellent geopolitical leverages which ensure LONG-TERM existence and stability. It connects continents. Controls major migration and trade routes. Has great military, great geography for defense and resilient culture. Elaboration on bad marketing and how it relates to m2 prices: [[ Church, western governments and media groups like Hollywood have been making this country or its people look worse than reality, to their people, for most of last 1,000 years. Which is normal and expected in politics. This bad image puts downward pressure on demand and keeps m2 prices low compared to other markets. However, this is changing thanks to individuals who share their experience on their media platforms (e.g YT channel) and in their social circles after visiting this country. This already happened partially during covid when amount of people who work remotely (digital nomads) skyrocketed. m2 prices in USD/EUR increased significantly. But there’s still HUGE room for improvement in terms of country’s image, which means huge upside potential depending on future foreign policies of mostly US and a few EU countries. I think their policies can’t be worse than what they were considering the following. This country’s position in NATO is extremely vital to existence of NATO and peace in Europe, especially considering 1. west’s new proxy war with Russia, 2. west’s trade war with China which appears to be escalating, 3. this country hosts more refugees than entire EU and acts as a gatekeeper. In short, things look great in the long term for m2 prices. I’d link enough sources for every statement written here if I create a presentation ]]

Idea 3)

• Do something related to solar. There’s an energy company who got government’s support worth about $5m for a similarly sized land nearby. I don’t know the details of their solar related project but they used green energy concept to get freebies and to get early approval to turn the farm land into zoned land. I am guessing they had political connections. I am pretty sure there’s no way I can handle this by myself but I don’t know

Idea 4)

• Sell it to a local. I have no idea what would be the actual sale price if I sell in a few months.

• Interest rates increased recently which significantly lowered amount of sales in the country. In late 2024 or 2025, they might decrease interest rates to save economy. I can wait for a few years to sell at a better price but low interest rates benefit mostly home sales. So not sure if it makes sense to wait. I don’t know.

Why do I want to sell? I have too little liquid NW at this point in my life and it is making me stressed. My source of wealth is a business I built rather than a job/career, and my business/niche mostly died. So my financial life doesn’t feel great at the moment. After I sell, land value might 10x-20x in 1-2 decades but I probably won’t regret seeing that. If I sell now and buy index funds, I can withdraw a certain percentage to support my lifestyle and do what I like to do while I’m still young. If I sell 1-2 decades later, I might get close to fatFIRE territory, but that means living my younger years without feeling of enough safety and peace of mind. I also have some more land in this country.

submitted by /u/Soggy-Perception-821
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/199l5sw/how_does_land_pricing_work_in_less_regulated/