Deciding to sell your land is not easy. There are a lot of smaller decisions to be made, like whether to use a licensed realtor or sell directly to a land buyer and determining how much your land is worth. Don’t let these questions delay your decision to sell your land. Here are four ways waiting to sell your land in Tennessee will cost you.
Land is in Demand
Waiting to sell your land in Tennessee will cost you because there are still buyers looking for land. People are looking to move to Tennessee so now is a great time to sell your land. With the impending market dip due to the coronavirus economic shutdown, people will need money, land will soon be flooding the market, and demand may start to wane. But for right now, there are still enough buyers in the market to buy land for sale. There are also buyers that have taken a portion of their money out of the rapidly fluctuating stock market and want to invest it in real estate. Once these funds are gone, they will stop purchasing real estate.
If you put your land for sale right now, you will have less competition than if you wait until the market really starts to take a dive. Buyers will easily find your land in Tennessee. Once the downward trend is in full swing, many sellers will use that as their queue to list their land for sale. That means, the real estate market will soon become flooded and you will have a lot of other competition for buyers in Tennessee. In order to grab the buyer’s attention when the market is flooded, you will have to make sure your any potential curb appeal has been done, and you may have to accept a lower offer than you plan on, just to find a land buyer.
If you wait to sell your land in Tennessee and you start to realize the market is trending downward, that means the average sales price for your comparable properties will also be less than you were expecting, and you may even have to accept a lower than market price offer to sell your land. This costs you the extra capital gain you could have had if you did not wait. When the market is flooded with land for sale, the buyers have more control in selecting the best land they want and are able to make lower offers because they have so many other options and they will tell you so. Desperate sellers in markets like these will start accepting the lower offers, which compounds the dip in the land market.
The longer you own the land for the year, the higher the percentage of taxes and dues you will owe at closing. The annual taxes on the property are prorated based on how many days out of the year you own it and you will only receive credit for the part of the year you will not own the property. The same goes for any homeowners association fees, only the part of the year you do not own the property will get refunded to you. These prorations are subject to the payment due dates. Most taxes are due at the end of the year, but some homeowners association fees are assessed at a different point in the year.