How Much Does it Cost to Sell Land?
You can use this free tool to find out how much it will cost you to sell your land.
Cost to Sell Land with a Realtor – Free Calculator!
Recording Costs of a Land Sale
The recording costs of a land sale will vary by county and state. The recording costs of land can include legal deed creation, the cost of transferring title from the seller to the buyer via a deed, submitting the deed to the county offices, and ensuring deed is documented properly in the county, and that they recognize the buyer as the new rightful owner of the property.
Closing Costs of a Land Sale
The closings costs of a land sale will cover the fees for any document creation, title work and title insurance, surveys, and any other processing fees. Note: if you’re closing directly (not using a title company) the closing costs should decrease. Normally the title company costs make up most of the total closing costs.
Realtor Commission on a Land Sale
From the calculator, you can see that the average real estate commission on a land sale varies by the state. This data was collected by surveying realtors in each state, and taking the average commission.
The real estate commission on a land sale is typically going to be the biggest expense you face when selling your land. The agent sets the commission fee based on factors like how long they think it will take to sell the property, how much work is involved for them, how far the property is from their office, etc. This fee is set by the realtor, and paid by you. This comes out of your pocket when the property is sold, regardless of how long it took the realtor to sell it for you. The realtor commission on a land sale comes out of your profit from the sale!
You might be able to try to negotiate a flat fee (if the agent’s brokerage allows for that). Beware– some realtors will charge a transaction fee in addition to their commission. A transaction fee would apply to any document storage and management costs.
Many real estate agents won’t even bother listing land in rural areas, because the commission would be too low for them (they don’t think it’s worth their time). For example, if you’re looking to sell a lot in a rural area of Colorado for an estimated $10,000, a 5.5% commission rate (CO average) would been that they’re paid $500 from the sale of your property.
It’s almost the same amount of work for them to list a property close to Colorado Springs or Boulder. They have to arrange photographers, all the marketing, launch a listing, notify any interested people they know, and schedule visits with potential buyers. If you were a real estate agent, would you rather do this for a property selling at $10,000 ($500 commission) or a property selling at $250,000 ($15,000 commission)? I know which one I’d chose!
How to Avoid Realtor Fees When Selling Land
Simply put – don’t use a real estate agent! You can try to list the property yourself or you can sell to an investor, like our team here at Buy Your Land for Cash. We have an easy 3 step process to get you cash in hand for your land, saving you commission fees, headaches, and time!
You can get started by completing the form below. (If you ask us for an offer on your land, it does not in any way obligate you to selling to us.)
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