How Much Does It COST To Sell Land In Georgia?
This is Brad from NorthGeorgiaLandBuyers.com and Arbor View Properties.
At North Georgia Land Buyers, we are real estate investors and developers. We purchase properties throughout the entire state of Georgia, not just in North Georgia. With extensive experience in this industry and a variety of deals under my belt, I’m here to answer your questions about selling land based on that experience.
How much does it cost to sell land?
It really depends on the method you choose for selling it. You might be able to sell it with little to no cost, but realistically, you will likely incur some expenses. Let’s dive into that.
Paying A Commission
If you are selling your property with the help of a real estate agent or broker, you will usually need to pay them a commission. This commission can vary, and they may or may not share a portion of it with a cooperating broker, depending on your agreement. It’s common practice to share commissions, although the recent NAR settlement has made the situation a bit more complicated. In any case, you will owe a commission to your broker. It’s important to remember that all commission rates are negotiable. While I can’t provide a specific percentage, commissions typically range from 5% to 10% in total between both parties.
You might find that you don’t have to pay a buyer’s agent commission at all, which could reduce your out-of-pocket costs. However, the reality is that someone is always covering that commission. It often makes me chuckle when I hear discussions about NAR settlements, with people saying things like, “Oh, well, this and that.” The truth is, the buyer is always the one indirectly paying the commission because they are the ones writing a check for the property price. Yes, the commission is listed on the seller’s side of the settlement statement, but the buyer ultimately pays for it. They might be spending $200,000 or borrowing that amount for the property, so the commission is effectively included in the overall price. I’ve always found that argument somewhat amusing.
Getting A Survey
Regardless of the situation, there will be additional costs to consider. For instance, if you’re selling a piece of property, I would recommend getting a survey done. While it may be possible to have the buyer arrange for a survey in some cases, it’s generally a good idea to have an updated survey on hand.
If the existing survey is around ten years old, that might suffice, but it’s best to have a more recent one available. Additionally, consider whether you want to obtain an appraisal for the land. Getting an appraisal can be beneficial for understanding the property’s worth. Make sure to hire an appraiser who specializes in land valuation, rather than a general appraiser who usually handles single-family homes. You want someone who truly understands the intricacies of land value.
Closing Costs
When closing a property sale, you may encounter several settlement costs. Typically, most closing costs are covered by the buyers, but sellers still need to consider some fees. These may include attorney fees, transfer taxes, and other related expenses. It’s important to consult your closing attorney or title company about these costs. They can provide you with an estimate based on the sale price of your property.
It may be beneficial to contact them ahead of time and ask, “I’m selling this piece of land for approximately X amount. What costs should I expect to incur during the sale?” While I can’t provide specific numbers since they can vary widely, it’s essential to be aware of the costs involved in selling a property.
Some brokers may require you to pay for signs and marketing materials upfront or ask for a deposit that will be reimbursed later. Selling land typically takes much longer than selling a standard house because there are generally fewer buyers for land compared to single-family homes. The time it takes to sell can also vary significantly depending on the specific parcel of land you have.
It’s also essential to ensure that the property is priced correctly. I’ve mentioned this in other videos, but pricing is crucial for both land and houses. If your property is overpriced, you will not sell it. Let me emphasize this: if you set an unrealistic price, your property will remain unsold. The reality is that a buyer will pay only what they believe the house is worth.
It’s a useful indicator to determine whether you’re selling land or a house. If you know that the average number of days on the market for your property is X, and your property has been listed for longer than that, I would bet money that your property is overpriced. It’s crucial to consider lowering your price. Often, I see sellers blame their real estate agent or broker, claiming that “my broker is lazy” or similar. While it’s possible that some agents may not be as motivated, in about 90% of these cases, the reason the property hasn’t sold is that it is overpriced. Many sellers become stubborn and refuse to listen to their broker, who is the expert in the field—someone who has completed far more land deals than the seller ever has. The broker may suggest, “Yes, Mr. Seller, we could list it at your price, but I believe the most realistic sales price will be X.”
If you want to sell something quickly, it’s actually better to price it lower rather than higher, especially since the market has changed significantly. It’s important to understand who your target market is.
Marketing Costs
If you’re selling the property yourself without a broker or agent, you’ll incur several costs related to marketing the property. This includes your time and any expenses for printed signs. You’ll need to create signs to advertise the property for sale and potentially post about it in various online groups. This effort requires time, which is essentially money. So, you need to evaluate what your time is worth.
Connect With Us!
If you have a property you are interested in selling and would like to receive an offer from us, we would be happy to assist you.
Please visit northgeorgialandbuyers.com and fill out the form provided. As I mentioned earlier in the video, I am a licensed real estate agent in Georgia, affiliated with OneSource based in Woodstock. If you’re considering listing your property, I’d be glad to discuss that option with you. However, if you prefer to sell your land quickly for cash, we can make you an offer right away.
Thank you for watching this video!