You want to sell your land in Tennessee and you’re looking forward to moving on from your property and putting some money in your pocket. But did you realize that selling your land may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus paid to investors…
It’s true… selling your land in Tennessee can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want to you to be aware of the different fees you have to pay because this information may help you decide whether to work with an agent or to sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
An agent is a salesperson. Their job is to try to find a buyer for your vacant land. To do this, they will list your land in a listing service and use various marketing efforts to attempt to find a buyer.
If they find a buyer you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell your land – This is the highest amount of money you’ll have to pay and it’s typically 10% of the sale price of the land. There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your land. There might be a fee to list your land, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your land or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they should tell you.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
The part that often surprises most land-sellers is that for most investors, there are rarely any fees to cover. Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your land for you. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.
The One “Fee” You May Not Be Thinking Of
There’s one more cost (“fee”) that you might not be thinking of: when you work with an agent, they may ask you to make an improvement to your land (like clearing part of it or putting in a driveway) to make it more marketable and then you’ll have to pay taxes and other bills or as long as it takes the agent to find a buyer. So although this isn’t a fee to the agent, it’s a cost you’ll have to pay because of the agent… but when you sell your land to an investor, they buy quickly so you end up saving this cost as well.
So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell your land.
If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your land to us then please get reach out and we’ll be happy to walk you through it.