Are you considering selling land in Tennessee? If yes, then you may be wondering about this typical question: who pays when selling land in Tennessee. This article will reveal the surprising answer.
People’s perception of selling land looks something like this: handing over the deed and receiving a check for the parcel. This is understandable. At first glance you might think the buyer pays the seller. But that’s not reality and you might be surprised to know who pays when selling land in Tennessee…
If you’re the seller, you’ll pay first! You’ll probably have to pay a surveyor to define actual property lines or hire a company to perform a soil analysis or for a geologist to review your property and tell you what can be done with the property.
Then you’ll hire a real estate agent who will try to sell the parcel for you. There will probably be additional expenses that you’ll have to cover while the agent tries to find a buyer. You’ll have to pay any combination of the following in the months the agent is attempting to find a buyer: mortgage, bills, taxes, and insurance on the property.
When a realtor finds a buyer for you, then you may need to work with a real estate lawyer, a title company, and potentially others as well to complete the complicated paperwork. Yes, YOU are paying for all of this the entire time.
Once the paperwork is complete, you will receive payment for the property – after your mortgage is paid off and any liens are taken care of. That settlement might come either from the buyer themselves (if they’re paying cash) or it might come from the buyer’s bank (if the buyer had to get a mortgage to buy the land).
But guess what? Your paying is not over yet! Once it’s all wrapped up, you’ll also have to pay the real estate agent’s commission… and that typically comes out of your pocket.
So the answer to the question, “who pays when selling land in Tennessee,” is that you’ll pay several times over while the buyer (or their bank) will pay you one time.
A lot of sellers are realizing this is not the ideal way to sell, especially if you don’t have the cash available to cover expensive up-front costs. Sure, it’s nice to bet on the potential of getting a higher selling price (although you may discover you might not get what you’re asking for the land); it’s no surprise why so many sellers are looking for a faster way to sell their land – by getting a fast cash offer and bypassing all of the costly and complicated steps, above.