SECOND LIFE BUYING OR SELLING LAND

IF YOU BUY LAND,
You then can shop for and purchase a house, store or whatever it is you would like to place on the land.  If  you are ambitious and creative, you may also make your house or store as many citizens enjoy doing after experimenting with making objects with the basic free prims available.

Below are pics of houses and an Art Gallery I placed on land which I purchased for the purpose of living there, having friends over to party as well as to exhibit and sell my sculptures and framed photographs. 

• The top 2 pics are Steampunk Style Home and of a large sculpture I made of a Steampunk Boy and Girl encased in a large enclosure which I had would sell as a single piece.
• the center 3 pics are in and on top of Italian Villas and the
• last pic is on a Spanish Villa I placed in the sky for more privacy.

PURCHASING SECOND LIFE LAND

Remember: when buying and selling land for profit, take tier fees into account.  You can easily make Lindens in the land business while losing US dollars.

If you are buying land on a Private Estate, you will be paying tier to the owner of that estate. He or she will be paying Linden Lab.

Tier on private estates often varies from what is charged for Mainland lands, depending on the business model of the Estate developer.

A few things to be aware of regarding tier and Private Estates (islands):

1) Tier paid to Estate owners is separate from tier paid to Linden Lab. You can't add them together if you own land on both an estate and the Mainland.  You pay both, separately.

2) You do not need a premium account to buy land on a private estate.

3) The 512 free tier from a Premium account is only good on Linden Lab managed Mainland.

4) Some Private Estate owners will accept payment in L$ rather than by credit card or Paypal.

5) The details of Private Estate tier should be made clear in the Covenant for that land.

Tier can be expensive, but LL makes much of their money off of your tier payments--either directly on the mainland or indirectly on a Private Estate. Without tier, we wouldn't have a SL to play in.

HOW TO BUY LAND

To buy a piece of land, just go to the plot of land you want to buy.

Right click on the ground (it has to be the ground--not a building or a landscaping prim on the ground) to bring up a pie-shaped menu.

If the land is for sale, you can select "Buy Land" from that menu--or go through the "About Land" window.

 (If you are going to buy the land for a group, you will need to go through the "About Land" window.)

If you do that, you will get an "About Land" box. At the bottom of "About Land" box there is a "Buy Land" button.

If the button is bright blue, that land's for sale to you for the price listed by the "For Sale" field.

"About Land" and "Buy Land" are also in the World menu. This can be handy for buying a plot where you can't see the ground to click on (if the ground has been covered with prims, for example).

Take a close look at this slide. It shows the window that you now get when you hit "Buy Land".

This window tells you how the land you are about to purchase will impact to your account.

But--and I cannot stress this strongly enough--if you press "Purchase" SL will AUTOMATICALLY make those changes to your account, which will usually include charges to your credit card of US$

This example is based on NCI's own Carl Metropolitan, who originally taught this class.

If he had bought the land listed when he  took this snapshot, it would have raised his monthly tier to $125 US and it would have gone out on the Lindex and bought the additional money needed to buy the land  (In this case, about $14.70 US); So Mmake sure to look at the "Buy Land" window very carefully before you buy anything.

Let me use Dennis as a quick example of tier rates…Carl normally pays $40US per month in tier; buying a huge 15,000 m2 plot would have kicked him up two notches to half a sim level (125US).

YOU CAN ALSO BUY LAND FOR A GROUP.

To do that, click the "Buy for Group" button instead of the "Buy Land" button on the "About Land" window.  You MUST have the group you are buying land for active to buy land for it. "Active" means that the group title is above your head.  Be VERY careful here. You don't want to accidentally buy the land for the wrong group!

If you buy land for a group--then that group owns the land. Unless you control that group (are the Group Owner), you can't get that land back unless the Group Owner allows it.  Buying land for a group brings its own set of complications--which could be a class in and of  itself.

SELLING LAND

When you sell land, you can either set the land to sell to anyone, or set it to sell to a specific buyer. When you set land for sale, you will get a confirmation window asking if you really want to set the land for sale at this price.

PAY ATTENTION TO IT. It is easy to make a typo and set land out for sale a much less than you intended. If you are giving someone a "sweetheart" deal on that land (a very low price), ALWAYS make sure to set the land to specifically sell to that person, BEFORE you set it For Sale; otherwise, anyone can come by and buy the land.  This happens regularly and Linden Labs will not do anything about it.  Having land set to 0L$ or 1L$ (or any very low price) for just a minute is not safe!  Some land traders use customized clients developed off the Open Sourced Second Life client program, as Land Purchasing Bots because of this; you have to be VERY careful when selling land.  If you set land to "sell to anyone" for a below market price--it WILL be bought almost immediately by a landbot.

Linden Lab has recently throttled how often you can search for land, but this only slows down-- but does not eliminate--landbots.

To set land for sale to a specific person, click the "Set" button in the "For Sale" section of the "About Land" window, which will take you to a window where you can select the person who you will allow to buy the land--the "Choose Person" window; you will then, get a dialog box asking you if you want to sell the land to that person at that price. Read it carefully to make sure you have set it correctly.

LAND AUCTIONS

Linden Labs will often auction land. Sometimes they will auction it in US dollars, sometimes in L$; normally, larger areas of land (4096m2 and up) are US dollar auctions, this land will be purple on the Map.  Such land is either currently up for auction, or slated for auction in the future.  The only way to tell which is what is to look at the SL web site or the "Find/Land Sales" window.  The Auction page on the SL website is at: http://secondlife.com/auctions/

Also--if you select "About Land" for a plot of land up for auction--or slated for auction in the future--you will see that it has been assigned an auction ID number.  Your bids in these auctions are binding. LL now charges a 100US$ fee if you cancel after winning an US$ auction--or 8000L$ for a L$ auction.  People had been abusing the easier cancellation terms that used to be offered.

If you are buying full sims, you need more information than I can teach you.  IM Carl Metropolitan though, and he can put you in touch with NCI members who do buy and sell (or rent) land in full sim quantities or to Shippou Oud, who teaches advanced land class.  

You can also go to the pull down menu (just under the "Classifieds" tab, and select "Auction" and hit "Search."  NOTE* That will display only ongoing L$ auctions; there are occasionally auctions for smaller plots.  Most non-full sim parcels of land that come up for auction are plots that have been abandoned by SL residents.  They either left the game, or expressly selected "Abandon Land" to get rid of it for zero L$.People usually "Abandon Land" so they don't have to pay another month's Tier on it--when they cannot sell it.

*For more information on land auctions, check out the "Auction FAQ" at: http://secondlife.com/auctions/faq.php

L$ land auctions can be a good way of picking up some land at under the market value--bids open at 1L$/m2--but you need to know what you are doing and be aware of the market values.

LAND VALUATION

You all have heard the expression "Location, Location, Location"? That applies to SL, too.  Before we go any further, please note that the advice on Land Valuation in this section mostly applies to MAINLAND land--not land purchased on private islands.  At one time, one of the biggest factors affecting land value was whether the sim was zoned "Mature" or "PG". Normally PG land sold for about 25% less than similar Mature land.  That is no longer the case.  Now both sell for about the same.  To digress a moment--a sim is a region of land in SL--a square 256m x 256m generated by one server.  A sim contains 65,536 square meters of land, and can support up to 15,000 prims.  Low end land went for 5-6L$/m2 in the fall of 2006.  At that time Linden Lab followed a policy designed to keep the average price of land in that range. That's an AVERAGE, mind you.  Mainland prices got out of control, with the low end of the market rising up to 20L$/m2 in January 2007; this happened because LL was dealing with a massive backlog of private island orders. That surge in sim orders kept them from rolling out many mainland sims--driving up mainland prices.  The quantity of land that is available in a sim is a significant factor in assessing land value there.   

You can only share prims between land plots in the same sim.  So if you are trying to get extra prims, land in the next sim over does you no good.  Thus,  if lots of land is available in a sim, that tends to make the land there less expensive--but if very little land is available, then that causes the price to go up.

Land on water is much more valuable than land that's not on water. Note I said "Land on Water" not "Land under Water." Land by the sea or bay or river is one thing; land under the sea is worthless.  In general, a lot on a shore is worth between 30% and 50% more than a land locked lot.  Islands in sims (not private islands) are even pricier.  Land next to a road (or a train track) is worth a bit more, too. This is mostly a function of perceived value.   Almost no one drives on roads here, but people still perceive a roadside as a good place to be--so the value of such land is higher.  Roads are also an example of what is called "Linden Protected Land." We will cover that in a moment.  Land near a popular club or mall can be more valuable--but where there is more traffic, there is more lag--an important factor to consider. Constant lag can significantly reduce the value of your land.   Hang out on land near a large source of lag for a while before you decide to buy it.  *Textures and scripts all contribute to lag--but the single largest lag source in SL is an avatar--you and I.

ZONED SIMS

Linden Labs has a few mainland zoned sims from early experiments that was not followed up on, including: Boardman, Brown, and De Haro. Land on those sims is quite expensive.  Don't expect to see much Mainland zoning in the future.  Zoning takes Linden Labs time to enforce.  They don't really have the manpower to do much beyond the PG/Mature/Adult zoning; speaking of early experiments that were not followed up on, there are 4 dual-prim sims--Miramare, Barcola, Grignano, and Sistiana; these sims have twice the normal allocation of prims. (But no terraforming is allowed)  Land in those sims almost never is (seriously) for sale. When it is--it is VERY expensive.  These sims are often referred to as the "Nova Albion" sims.  There is also a set of older sims that are "Fully Terraformable;" that means that you can adjust the level of your land by up to plus or minus 40 meters. Most sims only allow you to adjust by plus or minus 4 meters.  Land in sims zoned for PvP (Player versus Player) combat--like Jesse--is also sold at a premium.  Land on the top of a hill or ridge is usually moderately more expensive,not up to the level of shore land, more in the range of roadside land.  Conversely, land on the side of a hill, is worth less than normal.  Finally--land adjoining a stretch of "Linden Protected" land is more valuable than normal.  Linden Protected land is land that the Lindens have set aside for maintenance or for future roads.  Land near Linden Protected Land has a higher value because the buyer can (usually) count on nothing being built nearby.

If you right-click and select "About Land" Linden Protected Land usually says "Protected Land" in the "Name" field.  One last location note,  Snow land is less popular and less valuable than other types of land. Linden Labs overbuilt on snow land in 2004.

RENTING VERSUS OWNING

The pic below is of 2 different rooms which I set up  as rentals.

The rest of the house is not shown.

Second Life has a very active rental market.  As with any transaction, there are advantages and disadvantages to renting; carefully weigh these before deciding to rent.  One thing to keep in mind--because of Linden Labs tier (land use fee) system--essentially ALL land in Second Life is leased.  Whether you buy land from LL, or rent it from a landlord, ultimately, you are paying a recurring fee for the rights to various levels of control over that land (i.e., allotment of LL server resources).

POSITIVES OF RENTING

No Binding Lease. Your landlord can kick you off rented land for any reason--at any time.  If they do, you have no recourse.

LL will not get involved in resident-to-resident business dealings. A smart (or ethical) landlord will not do that but it can and does happen; furthermore, if the person you are renting from sells the land, the new owner is under no obligation to let you stay--even if you have paid rent in advance.

Have a problem?  Take it up with your old landlord. Most will be reasonable.  The lack of a binding lease (and enforcement mechanisms) is usually not a problem.  Most landlords want to keep their tenants happy--and avoid generating negative word-of-mouth.  

LAND USE RESTRICTIONS

Most rented land comes with some land use restrictions.  At a bare minimum, you will be limited in the number of prims that you can use.  Do not complain, this is a reasonable and rational restriction.  The landlord only can use a set number of prims (based on how much land they own in that sim).  If you go over your prim limit, you are keeping your neighbors from being able to use their share or taking prims from common areas or landscaping. Many landlords will also have various aesthetic and/or zoning-type restrictions on their properties.  For example, you may not be able to open a store in a residential development, or you may not be allowed to build out up to the property line; these are also usually reasonable restrictions.  Most good landlords want to maximize the value of their property to their tenants.  Keeping the property from looking bad helps do that.  If you rent in a PG sim, you must abide by that rating.  Persistent griefing will get usually get you evicted.

Examples of griefing: attacking or insulting people, using push weapons, excessive shouting or playing of annoying sound clips, and overuse of lag-creating scripts and particles.

GROUP REQUIREMENTS

To rent land, you normally must be a member of a land leasing group created by your landlord.  Any objects you rez must be set to that group, or they will be auto-returned--including your house, shop, or furniture.  Landlords require this so that they can remove prim litter--prims that people leave lying around--will be automatically returned to the person who left it there; this keeps the prims associated with the land available for the landlord and tenants.

LIMITS TO CHANGING LAND SETTINGS

 These settings include: land description, streaming media, bans, access restrictions, terraforming, or inclusion in the "Find/Places" list.  Landlords will often give you powers to change some or all of these settings as part of membership in their land group. Most landlords are quite reasonable about making changes--or allowing their tenants to make them, so long as those changes don't create a hardship for their other tenants  or make the land look bad.

POSITIVES OF RENTING LAND

Renting land is available to all Basic (Free Account) Members. Only Second Life residents on premium (i.e., paid) accounts are allowed to buy land (at least on the mainland).  If you are on a account, you can only rent; this is a significant plus for renting; the majority of SL residents are on Basic accounts. Rent Paid in L$.  Tier (land use) fees must be paid to Linden Labs in US dollars. Rent can almost always be paid in L$.  Paying your rent in L$ can be very nice, especially if you would really rather not bother with Tier, Lindex, conversion rates, etc.  It is a very useful feature for people that approach SL primarily as a social game.

Land Restrictions:  Yes, this was one of the disadvantages of renting--but it is also one of the greatest advantages.  In larger, well-managed properties, your landlord can help minimize the ugliness and griefing that characterizes parts of the mainland.  Do not underestimate the value of this.  Nno Up-Front Purchase Cost is a huge plus because you can easily spend the real world equivalent of twenty to a hundred US dollars buying a small to mid-sized plot of land.  It is easy to move when you rent.  Tired of where you are?  Want to move to another mall?  No problem, just pack up and leave.  There is no land to sell, no tiers to juggle; since SL leases are rarely for more than a month and often week to week, you lose little money.

Economies of Scale: Finally, renting allows you to take advantage of some of the economies of scales available to large landowners on a smaller plot.  The more land you own, the less you pay in tier per meter squared.  Because of this, you can often rent land for less than you would pay in Tier per month each month to Linden Labs. You get to take advantage of the landlord's lower per meter Tier rate.  Many landlords also provide public spaces such as parks or event venues for their tenants use.  If you are renting space in a mall, there is also the possibility of cooperative advertising based around the mall.

CONCLUSION--WHY OWN LAND?

If you have read many of the proliferation of help note cards aimed at new residents, you've probably been told "you don't have to own land to have fun".  While that's certainly true, it leaves out something quite important -- owning land is fun.  Even if you never open a shop, or rent or sell land, or even make some sort of impressive build, your plot of land gives you a place to call home in world, a retreat from the public spaces of Second Life. A little bit of this virtual world that you can make uniquely yours.

I hope this helps you as you decide if and how to buy or rent, and also helps you start thinking about becoming the next Land Baron in Second Life.