Are you thinking about selling land in Michigan? If so then you might be wondering this common question: who pays when selling land in Michigan. Selling land in Michigan comes with its fair share of expenses that can catch you off guard, so it’s best to be financially prepared.
In this article, we’ll reveal the surprising answer.
When people think of selling land, they think of handing over the deed and accepting a check for the property. The notion that the buyer pays the seller is a common misconception but not entirely accurate. Makes sense. In fact, as the seller, be prepared to incur expenses before and even after the sale is complete.
At first you might think that the buyer pays the seller. The buyer pays you for the land, but you foot all the bills when trying to sell your property.
But that’s not really how it works and you might be surprised at who pays when selling land in Michigan…
If you’re the seller, you’ll have to pay first! You’ll probably have to pay for a survey or a site analysis, or for a forester to look at your property and tell you what potential it has. This can include expenses such as property surveys, site analyses, and other miscellaneous fees.
Then you’ll work with a real estate agent to try and sell the property.
Agents’ fees are another cost that sellers have to bear when selling land in Michigan.
There will probably be additional expenses that you’ll have to cover while the agent tries to find a buyer. The expenses include mortgage payments, taxes, bills, and insurance that the seller must settle during the marketing period.
For example, you’ll have to pay any mortgage, bills, taxes, and insurance on the property in the months that the agent is looking for a buyer. These expenses can quickly add up, making it more difficult for the seller to sell their land on their own.
When an agent finds a buyer, then you may need to work with a lawyer, a title company, and potentially others as well to complete the paperwork. The seller might as well use a lawyer or a title company to aid in finalizing the transaction, which they will also have to pay for.
Yes, YOU are paying for all of this the entire time.
Essentially, the seller is responsible for all costs associated with the sale, every step of the way.
Once the paperwork is complete, you will get the money for the property – after your mortgage is paid off and any liens are taken care of).
However, there is light at the end of the tunnel; you will finally get paid once the deal is done, the mortgage is settled, and all liens are paid off. That money might either come 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 properties). The money will come from the buyer or their bank, depending on how the buyer financed the purchase.
But your paying is not over yet! Once it’s all said and done, you’ll also have to pay the agent’s commission… and that typically comes out of your pocket.
It’s important to remember that even after the sale, sellers will have to settle the agent’s commission.
So, to answer the question, “who pays when selling land in Michigan ,” the answer is that you’ll pay over and over and the buyer or their bank will pay you once. The seller pays for everything, and the buyer or their bank pays only once – this is the reality of selling land in Michigan.
A lot of sellers are realizing that this is not the best way to sell, especially if you don’t have the cash in hand to cover those expensive up-front costs. Many sellers are seeking alternative ways to sell their land, such as a fast cash offer through companies like NateBuysLand, to circumvent these costly and complicated steps.
Sure, it’s nice to gamble on the possibility of getting a higher selling price (although you might not get what you’re asking for the land); it’s no wonder why so many sellers are looking for a faster way to sell land – by getting a fast cash offer and bypassing all of the costly and complicated steps, above.
By doing so, sellers can avoid taking on extra costs and sell their land quickly, without tying up their finances for months.
Get in touch with NateBuysLand today for more information.
If you’re interested in learning more about selling your land quickly and without hassle, contact NateBuysLand today!
Give us a call at (269) 222-7711
