by Chris Clark
Upon hearing that the average hold time for selling vacant land is considerably longer than it is for a single-family home, you’re probably wondering what alternatives exist.
One option is to work with a company that pays all cash for land. There are companies out there that will purchase your land for cash quickly and make the process very simple. This article outlines some of the reasons it may be worth considering working with one of them.
If you’re looking to get top dollar for your land, and willing to put in a little more effort to get it sold, this article isn’t for you. But, if you want to quickly convert your property into cash, read on.
Save Money on Fees
Selling your land for full market value is a great option. In order to do so, you’ll want to consider the additional costs incurred as part of a typical sale. Many people elect to hire a realtor, who earns a commission, and there may be fees for title, escrow, and other services involved in closing the sale.
When selling to a company that pays all cash, you won’t incur the cost of a realtor and they will typically cover all other costs associated with closing the sale.
Don’t Need to Pay Back Taxes or Liens Prior to Sale
If you have any payments that are in arrears, cash buyers will usually buy the property without you having to pay those amounts first. They’ll build them into the cost of purchase and pay them after the sale occurs. Not only does this make the transaction simple, it removes the burden of unnecessary outbound cashflow from your bank account.
Shorter Hold Time
The average time it takes to sell a parcel of vacant land is considerably longer than the time it takes to sell a single-family home. There are two reasons for this.
First, there are far fewer people who are in the market for buying vacant land. Vacant land is usually purchased with discretionary income and most people need a roof over their head before buying more real estate.
The second reason is that bank financing for vacant land is not easy to get. Most banks don’t want to lend on vacant land because it’s difficult for them to sell if they were to ever foreclose on the property, and not a lot of people have a lump sum of cash to buy a property.
The nice thing about having a shorter hold time is that your own expenses don’t continue to accrue, and you have less liability. If you hold the property for six months to a year, you’ll have to pay more property taxes, and there’s a possibility of property maintenance depending on the property.
No Need to Deal with Flakey Buyers and Tire Kickers
One of the nice things about hiring a realtor is that you’re removed from dealing directly with buyers. The realtor deals with all of the calls, emails, and questions from various buyers and brings you a qualified candidate to buy your property.
However, you still need to work with the realtor, and not every buyer actually closes after you sign a contract with them. If you elect not to hire a realtor and sell the property yourself, then you’ll be the one to speak with all of the potential buyers who have questions about the property, the looky-loos, the tire kickers, and the unqualified.
The last, and probably most important reason, to consider working with a cash purchase company is the stress it will relieve.
Selling a property is not something that you do every day. There are a lot of moving parts and it can be overwhelming to learn about all of them and manage the whole process.
By selling your property for cash, you can alleviate a lot of the stress involved in the sale and have peace of mind that it’s not something that you need to deal with any longer.
Lower Your Cost and Your Stress by Selling Direct
If you’re considering selling to a company that pays all cash for land and closes quickly. Consider working with True North Land.
True North Land has purchased over 500 properties for all cash and can make the process easy for you. And, they close in less than 7 days in most cases, so you can have cash in hand in no time.