Do you know about the costs of selling your land in Tennessee? Learn what to expect before putting your land on the MLS, selling on your own, or working with a direct buyer. You might be surprised at how the costs of selling can eat away at your profits!
Selling your land can be expensive. There are a number of things to pay for both before and after the sale. If these costs are particularly high, a direct sale will be a far better option. In our latest post, we will dive into the costs of selling your Tennessee land using the three most popular methods. Compare all of your options before selling your land in Tennessee!
Costs Of Listing
Agent Costs
This will vary based on the agent you choose to hire. You will typically be paying 8-10% of the final sale price to the agents involved in the deal. With some agents, you will also pay for marketing and administrative services. Be sure you know what’s included in their services before signing a listing agreement.
Marketing Costs
Whether or not your agent includes marketing services in their rate, there are a few marketing costs you consider adding. For example, many sellers will hire a professional real estate photographer to take photos of their land. Some will utilize videographers or even drone service companies to get beautiful aerial shots of the property. You might also want to upgrade your online listings to “premium” so they show up at the top of website pages when people are browsing through land in your area.
Improvement Costs
Some land will require some work before going on the MLS. Unsightly trash should be removed. If there is a lot of undergrowth, you should consider clearing it. Once a buyer has been found, there may be negotiations as to who pays for a survey or perc test. You can negotiate to either include some of these items or discount the sale price of the land.
Closing Costs
In a typical land sale, the seller will need to pay about $1,200-1,500 in closing costs. This can be negotiated up or down between the buyer and seller, but that is typically what you can expect to pay.
Continued Ownership Costs
Listing your land with a Tennessee realtor can take a few months or even years. During this time, you will still be responsible for the property taxes, any landscaping, and possibly an HOA payment. When you add up all the expenses of owning the land each month, it can add up!
Costs of An FSBO (For Sale By Owner) Listing
While trying to sell your land on your own will help you avoid commissions and agent costs, there are other costs to consider. In addition to many of the costs above, here are some additional costs to expect when selling your land in Tennessee.
Heightened Marketing Costs
When listing your land, the addition of extra marketing is at your discretion. However, when you are selling on your own, 100% of the marketing cost is your decision. You will have to pay for all online postings, printed materials, and signage. You will likely want a professional real estate photographer to come in to help you present the land at its best. You can also choose to add things such as virtual tours or videos of your property to get more eyes on your land.
The Price Of Your Time
When you choose to sell the property on your own via an FSBO listing, you will find yourself spending an excessive amount of time dealing with the sale. You will need to be available for showings, develop listings and marketing materials, answer questions, process paperwork, handle negotiations and more. Be aware there a lot of tire kickers out there that can take a lot of your time, but do not have serious interest.
Costs of Selling Directly
None
When you opt to sell your Tennessee land to a buyer such as Turbo Land Offers, you will be able to avoid all of the selling costs mentioned above. There are no fees, repair costs, or even closing costs. We buy directly, as-is, potentially saving you thousands of dollars along the way.