Hi, I’m Beth with TB Properties Buys Land. In the last two segments we’ve been talking about what it may cost you in order to sell your rural vacant land. Most of the time we think, “Cha-ching. Sell our vacant land and we have money in the bank.” But we talked about some of the things that may be deducted at closing from a title company. We also talked about ways that you may have to improve the property before you can even market it and sell it.
So now let’s talk about some of the costs in selling the land itself. Are you going to hire a realtor? Have you interviewed the realtors? Have you looked at their listing to see what kind of realtors they are? Land realtors are going to cost a little bit more than a realtor who sells homes. A home has a lot bigger value than just a vacant land lot. Realtors split 6% commission on homes. But when it comes to vacant land, most of the time they’re splitting 10%. So think about that.
If you’ve got a $20,000 property, you might be losing $2,000 of that $20,000 profit to the realtor. Also, deduct any kind of closing costs you’ve got. Something like that might cost you about 1,000 to $1,500 in sales and boom you’ve just lost $3,500. And that’s not counting anything that you had to put into the property in order to sell it. Maybe you don’t like realtors and you want to sell this on your own. Have you thought about what it’s going to take in order for you to sell your property on your own? Have you looked at the subscription costs in order to market these on different land sites? Be everywhere marketing can cost you but it’s important to do in order to sell your property.
Have you though about what that’s going to cost you? Do you have to pay for a minimum subscription of six months, a year? How many different land websites are you going to post on? Are you willing to answer all the phone calls? The thing to consider about rural land is that most of the time it’s hard to find. Oftentimes it’s out there in the boonies and a lot of people interested in buying land are not really savvy with trying to find property. Be ready to answer all those phone calls asking, “How do I get there and how do I know I’m on the right property?” And “can I meet you out there” and “will you give me a tour?” and “where are the corners?” These are all questions that you’re going to have to answer. So be ready for that.
Do you have good pictures? Do you have to pay a professional photograph your property? Do you need to pay for a drone pilot to get out there and be able to show your property so you can get the best value? These are all things that if you’re going to do, you have to put money into the property ahead of time in order to do that. If you’re going to put money professional photography and video in order to update the websites and all those subscription services, understand that any improvements you’re going to have to make should be done in advance of the photography.
What happens if your property is sitting on the market for a long time? Are you ready to lower the price? And at what price are you willing to take if you have to keep lowering it? The longer your property’s been on market, the lower the value is going to be, the more people are going to think that they can bargain with you in order to purchase your property. So again, you might think you’re going to sell your property for, I’m just throwing that $20,000 value out there again. But what if it’s out there for longer and somebody offers you $15,000? What if it gets even lower than that? Are you willing to drop your price? Especially consider this if you have recurring costs such as marketing subscription costs, the MLS costs, other places you have to put your money.
Now that you put money into this property, are you willing to sell it for a lower price? These are things to think about when you’re selling your property. In sum, a few of the things we’ve talked about when it comes to selling your property are be sure to calculate the closing costs: this could be title insurance. What is the split for the escrow fees? Are there attorney fees that are going to be needed to remedy title? Will you have to pay for a survey? And are you prepared for the survey’s finding, if you lose acreage or if you lose access, if you lose some attributes to the property.
Are you ready to pay a possible 10% split for the realtor fees? If you’re going to sell the property on your own, are you ready to pay for the subscription services in order to market your property? How about photography and videos? These are just a few things that it may cost you upfront before you’re able to sell your property. But think about that. If you’re looking for an easier way, a faster way to get paid for your vacant land lot, feel free to reach out to a reputable land investor such as TB Properties Buys Land.
We do this every day where we buy rural vacant land, vacant land lots, empty land that’s out there. Sometimes we make improvements. We clean up the chain of title. We pay for the title fees, but we do close through a title company and we will pay all closing costs, that includes title insurance that normally you would have to pay for. It includes all of the escrow fees includes back taxes, recording fees, excise tax, all those things. That’s all covered. The dollar value that we quote you is what you’re going to walk away with.
Because we close through a title company, you know that the transaction is going to be reputable; it’s going to be fast and it’s going to be right. We also pay with cash so that the transaction can happen much quickly. Most of the time we’re waiting on the title company to get their paperwork done. They’re the slowest common denominator. If you’re looking for a fast, easy transaction, reach out to TB Properties Buys Land. We’re happy to answer any questions that you might have and we look forward to working with you. Thank you again.