Guide to Second Life Real Estate: Buying and Selling Land in Second Life

Buy vs. Rent

Not all land that appears to be up for “sale” is equal. To actually “own” land in Second Life, you must buy it directly from Linden Labs (usually referred to by residents as "the Lindens") or from a resident who is willing to turn ALL rights over to you. Many residents will buy large parcels of land, subdivide them and say they are “selling” it to you, while retaining ultimate rights of land ownership. In that case, you are only buying a lease, and should the resident decide to evict you, you have absolutely no recourse. (How to understand if you are buying or only leasing is further explained throughout this Guide.) Although this has never happened, Linden Labs has made it clear they will not step in to help you. Also, some land you “buy” from residents may have a covenant that prevents you from transferring to another owner. When in Second Life, right click on the land in question and closely read the information in the category “About Land” in the window that pops up.

I recommend: Learn more about wheeling and dealing in Second Life land on the Second Life web site.

Who Can Own Land

Most people begin Second Life with a free account, but to buy land directly from Linden Labs you must have a premium account for which you pay $9.95 per month and receive a small monthly stipend. If you are told that you are not required to have a premium account to buy land, then you are essentially just renting it from another resident, even though they may call it a land sale.

I recommend: Check out the Second Life membership plans.

Form a Group to Buy and Sell Land

You may want to go into the land business with someone else, in which case you will want to form a group to own land.

I recommend: See how you can own land with others by forming a group.  

Buy at auction from the Lindens

The Lindens usually have land parcels of various sizes up for auction. This is a great way to get land, just be sure you understand what you are buying. All the land for auction is listed on the Second Life web site. After you select a parcel, bid the maximum amount you wish to pay, and the auction will bid for you until you reach the maximum bid amount you entered and the auction is over.

I recommend: See the list of land Linden Labs has up for auction. But before you bid, read the auction FAQ.

Buy an Entire Island

Want to build a nightclub and sell residential parcels surrounding it? Sounds like you may want to buy an island. Islands can be ordered with a choice of six different topologies from Linden Labs. They are delivered in anywhere from a few days to a couple weeks. Many make money buying islands, then divide them up into smaller residential or commercial parcels they sell at a profit. Islands are currently priced at US$1,675 for 65,536 square meters (about 16 acres). Monthly land fees for maintenance are US$295.

I recommend: Find out details on how to buy an island. Once you are ready to buy, go to this map, click the area where you want to buy and order one! You can pay by the U.S. credit you used when you set up your Second Life account (credit card or Pay Pal) or you can pay by wire transfers.

Buy Land from Other Residents

Residents are always putting plots of land up for sale. (Be aware of the warnings in this Guide regarding "buying vs. renting".) You can see what is currently on the market (owned by both the Lindens and residents) by checking out Second Life's in-world map which indicates land that is for sale. Also check the Classifieds within Second Life. At the bottom of the screen, click on the Search button, then Select the Classifieds tab. From there, select Land Sales and hit Search. Be aware that land owned by residents that they rent or “sell” usually has covenants that dictate what you can and cannot do on that land. Land may be zoned as residential, commercial or mixed use. (If you are buying an island, of course it’s your choice.) Some land may be in a region with a theme, such as ancient Rome or 19th Century Tombstone, Arizona, and you must build within that theme.

I recommend: In addition to checking the Classified within Second Life, see the Seond Life Land Sales and Rental Classifieds Forum.

Land Use Fees or “Tier”

Once you buy land, that’s not the end of your financial obligations. Once you own more than 512 sq. meters of land (a parcel only big enough for a tiny house crowded against the neighbors), Linden Labs start to charge you a monthly land use or “tier” fee. A “tier” fee is based on the amount of land you own, but it is discounted as you acquire more. Land use fees are billed based on the peak amount of land held during your previous 30 day billing cycle, so be aware of this as you buy and sell, or you may be in for a nasty surprise at month’s end.

I recommend: If you are REALLY buying and not just renting land, you will pay your tier fee to Linden Labs. If you are paying “tier fee” to another resident, sorry, but you are just renting.

How to Sell Land

Like real life, you need to advertise and market your land. 1) Place a classified ad within Second Life for the specific land in question. 2) Place an ad in the Land Sales and Rental Classifieds Forum. 3) Put a sign on the land itself. You will be amazed how many people fly by. 4) Put up an ongoing classified ad listing yourself as a real estate broker and have a landmark that enables people to come to your office and get information. 5) Network! Make an announcement or send notices in Second Life groups to which you belong (be sure they won’t consider it spam) and put yourself out there as a a player in the real estate business.

I recommend: Want to see how Second Life land deals are done in the big leagues? Visit Anshe Chung's web site.