We buy land in Minneapolis St Paul Minnesota Are you thinking about selling land in Minneapolis St Paul? If so then you might be wondering this common question: who pays when selling land in Minneapolis St Paul Minnesota . In this article, we’ll reveal the surprising answer.
When people think of selling land, they think of handing over the deed and accepting a check for the property. Makes sense at first glance. You might think that the buyer pays the seller. But that’s not really how it works and you might be surprised at who pays when selling land in Minneapolis St Paul…
There are things you need to know about selling vacant land in Minneapolis St Paul or any where in Minnesota . If you’re the seller, you’ll have to pay first! You’ll probably have to pay for a survey or a site analysis, or for a geologist to look at your property and tell you what potential it has. You might find a deserted fuel oil tank underground that you are going to need to have excavated and have the EPA come out and review. The EPA will suggest that you turn vacant land into green infrastructure.
How do you determine the value of your land before you put it up for sale. A good agent will be able to run the comps or you do your own research to come up with a value.
Then you’ll work with a real estate agent to try and sell the property. There will probably be additional expenses that you’ll have to cover while the agent tries to find a buyer. For example, you’ll have to pay any mortgage, bills, taxes, upkeep like mowing or snow care and insurance on the property in the months that the agent is looking for a buyer.
When an agent or an agent that he reached out to for help, finds a land buyer, then you may need to work with a lawyer, a title company, and potentially others as well to complete the paperwork. Yes, YOU are paying for all of this the entire time. It can ad up the thousands of dollars.
Once the paperwork is complete, you will get the money for the property – And you say to yourself, this is great I have a pocket full of money and the land is sold. But wait, after your mortgage is paid off and any liens are taken care of). That money might either come from the buyer themselves (if they’re paying cash) or it might come from the buyer’s bank (if the buyer had to get a mortgage to buy the properties).
You want to see a different way to sell vacant land and lots, check out our process on how we buy vacant land at Minnesota Cash Home Buyers.
But your paying is not over yet! Once it’s all said and done, you’ll also have to pay the agent’s commission… and that typically comes out of your pocket as well. When you pay a commission to an agent for selling land in Minneapolis St Paul or in out state Minnesota in averages 4 to 7%. On a $60,000 at 5% that alone equals $3000.
So, to answer the question, “who pays when selling land in Minneapolis St Paul,” the answer is that you’ll pay over and over and the buyer or their bank will pay you once. Beware of all the hidden expenses of owning vacant land as well. It just keeps costing you money.
A lot of sellers are realizing that this is not the best way to sell, especially if you don’t have the cash in hand to cover those expensive up-front costs. Sure, it’s nice to gamble on the possibility of getting a higher selling price (although you might not get what you’re asking for the land); it’s no wonder why so many sellers are looking for a faster way to sell land – by getting a fast cash offer and bypassing all of the costly and complicated steps, above.