Land purchasers: how are all-cash buyers different from listing agents?

When looking for land purchasers, you have many options to consider. Which process will be quicker? How can you keep (and get) more money in your pocket? And which routes are easiest and hassle-free? In this blog post we will compare the process of selling your land to all-cash land purchasers (like TX Land Offers) vs. listing your land with a real estate agent or brokerage.

Advantages of selling your land to land purchasers like TX Land Offers

Typically, there are three main routes to consider when selling land. You can…

1. List your land with an agent.
2. Try to sell your land yourself.
3. Or, you can sell to an all-cash land purchaser, like us — TX Land Offers!

When selling land, the main things to consider are:

• commissions/fees
• average days until your land is sold
• number of showings
• who pays the closing costs
• when you can set a closing date
• and your out-of-pocket costs to clean and stage the land for showings

1. Selling land with an agent

Listing your land with an agent, you can typically expect…

10% – 20% commissions.

Wait a second! Aren’t typical agent fees 5%-6%? Yes, you’re right about that. But that percentage gets different when it comes to selling land.

Since many parcels of land sell for a lower price than a house, agents are often hesitant to list a property for the standard 5% – 6% commission. Think about selling a single family home for $200,000. At 6%, that’s a hefty $12,000 agent commission (or a $6,000 commission split between the buyer’s and seller’s agents). That’s a pretty nice sum to work for!

But compare that with selling a land lot for $8,000. At 6%, your agent will be making $480. Not bad, but not a great sum for a lot (sometimes months) of work. And if your parcel of land is event smaller, in a remote rural area? Will an agent list your $1,500 land just to make $90 bucks? You can bet they wouldn’t be extremely motivated to market your land to the best buyers.

Instead, many real estate agents simply refuse to list smaller land deals. If they do accept your listing, they will be asking for at least 10%-20% in commission fees. And that, unfortunately, means much less profit for you.

Average days until sold?

Listed land can be hard to sell. Sometimes land will sit for months, if not years.

Number of showings?

This depends on your agent, how many buyers they have in their personal network, and how motivated they are to sell your land quickly. If you’re in a hurry and looking for a hassle-free option, having multiple showings may turn into a burdensome process.

Who pays closing costs?

On top of agent commissions, expect to pay around 2% for the closing costs.

Who chooses the closing date?

You typically have flexibility in choosing your closing date, but it also will depend on your buyer. Usually the closing date can be set for 30-60+ days after you accept a land buyer’s offer.

Your out-of-pocket costs for showings and improvements?

This would be variable, but do expect to spend money on cleaning and staging your land. If you parcel has an abandoned home, mobile home, or trailer, your agent will likely expect you to move or demolish those. If your land has a lot of trash or overgrown brush, you might be expected to clear some of that out. The presentation of your land does affect buyer’s offers, so you may need to expend some out-of-pocket costs to make your land look as nice as possible.

2. Selling land yourself

If listing your land with an agent is not a good option, you might consider trying to sell your land yourself.

Commissions?

Although you’re not working with an agent, you will still encounter fees when selling the land yourself. Various land websites and listing services will charge a flat monthly fee for listing your land. Lotnetwork.com, for example, will charge $19.95 per month for a single listing. That doesn’t seem like a lot, but considering that land often sits for months or years before selling, this monthly fee can quickly add up. The other thing to consider is, how many buyers will actually see your listing on such websites? Just because it’s listed, doesn’t mean they’ll see it. You’ll need to plan for some extra marketing fees to drive more views to your land listing.

Average days until sold?

Again, this depends on your marketing efforts. Land can often sit on the market for 6 months to a few years.

Number of showings?

This also depends on how many interested buyers you’ll have. And since you’re not working with an agent, prepare to manage all the showing yourself!

Who pays closing costs?

In this instance, you will also be responsible for paying closing costs. The average amount is 2% closing costs for land sales.

Who chooses the closing date?

You choose the date, but it will depend on how quickly your buyer can receive financing. If they are not buying for cash, they will often need to get loans from a bank. This can take time.

Your out-of-pocket costs for showings and improvements?

Again, this depends on the condition of your land. Abandoned homes or trailers? Trash or overgrown brush? These factors may deter potential buyers, so you may need to consider investing in cleaning and preparing your land for optimal presentation. On top of this, consider that you’ll need to hire a photographer to make your land listing more attractive online. Photographers—especially aerial photographers—can charge a pretty penny!

3. Selling land to all-cash land purchasers like TX Land Offers*

If the first two options are not sounding like a good fit for you, consider working with us — TX Land Offers. As you can read below, we make each step simpler, faster, and you’ll have ZERO expenses.

Commissions?

Zero! Absolutely NO money out of your pocket.

Average days until sold?

We can close on your land in as little as 7 days. If your title has complications, we will work with a title company to clear those issues as quickly as possible.

Number of showings?

Absolutely NONE!

Who pays closing costs?

We pay all closing costs. You don’t have to worry about anything!

Who chooses the closing date?

You choose! We can close anytime at your convenience.

Your out-of-pocket costs for showings and improvements?

NONE at all! We will buy land as is, in any condition. Abandoned home or trailer? No problem—just leave it there! Trash? No problem again. Overgrown brush? Also not to worry. We will take care of everything for you and your peace of mind.

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*Please note that this list applies to how we work at TX Land Offers. Not all land purchasers work in the same way, and not everyone will offer you these options. Make sure you know all the details and fine print about your land purchasers before agreeing to a cash sale.

Now that you have a better understanding…

…of the three main routes of selling land, consider which option may be the best fit for you.

Are you interested in getting an all-cash offer from us?

This is no obligation and no cost to you. Contact us today to request your cash offer. We’ll look forward to helping you with your unique land selling needs.