Unveiling the Hidden Costs of Selling Vacant Land
At Falcon Land Company, we’re committed to transparency and equipping our clients with essential knowledge. If you’re considering selling your vacant land, you might be surprised to find that there are some costs you might not be aware of. Here’s our comprehensive guide to ensure you’re prepared.
1. Time: The Invisible Investment
Unearthing the Value of Your Time in Land Sales
Time is one of the most overlooked costs when selling vacant land. But remember, time equates to money. The steps involved include:
Determining an appropriate selling price.
Organizing and capturing high-quality land photos.
Researching and choosing the best real estate agent.
Engaging in negotiations with potential buyers.
Navigating the buyer’s due diligence period.
Selling through traditional methods means waiting at least 60 days to see any returns. To accelerate this, ensure your land is priced in line with the market. A competitive price can spark immediate interest, ensuring your land doesn’t languish on listings.
2. Understand Real Estate Agent Commissions and Fees
Deciphering Commission Costs and Their Impact
While some might believe that agent commissions are straightforward, they often house hidden layers. Commissions and fees, can range between 3-10% of the purchase price, and vary based on:
The perceived value of your land.
The extent of the agent’s marketing efforts.
The agent’s familiarity with vacant land sales in your region.
Beware of agents offering high valuations to secure your business, which might result in overpriced land that doesn’t dust.
Tip: Selling land doesn’t mandate an agent’s involvement. In fact, selling on your own is completely legal.
3. Surveying Your Land: A Crucial Step
Understanding the Scope and Scale of Land Surveys
Expect survey costs to range from $1,000 to an overwhelming $10,000. Factors influencing these costs include:
Size: Larger plots typically mean heftier fees.
Terrain and Shape: Complex layouts and tough terrains can inflate costs.
Accessibility: Remote locations without easy access tend to increase fees.
Surveyor Demand: High demand for surveyors in your region might raise the price.
Remember, this is an upfront cost, incurred even if the land doesn’t sell.
4. Closing the Deal: Hidden Closing Costs
Demystifying Closing Costs in Land Transactions
The final stretch of your sale journey includes some hidden expenses. Closing costs, typically between $600-$2,000, encompass:
Charges from title companies or real estate attorneys.
Taxes for recording the transfer of ownership.
Factors like the intricacy of the transaction and land’s purchase price play into these costs as well.
5. The Falcon Advantage: Eliminating Surprises
Why Selling to a ‘We Buy Land’ Company Makes Sense
Choose the hassle-free route by selling your vacant land to a reputable land-buying company. With a clear offer and no hidden charges, you’ll know precisely what to expect.
6. Actionable Steps Moving Forward
Empower Yourself with These Essential Next Steps
If you’re serious about selling, consider:
Conducting thorough market research.
Engaging professionals for an accurate land valuation.
Weighing the pros and cons of selling independently versus employing an agent.
Preparing your land for viewing: clean up, mark boundaries, and gather essential paperwork.
