Will selling cost you money? Many people list their land, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In our latest post, we will let you know what costs to expect when selling land in Florida!
Have you decided to sell your land in Florida? There are many things to consider before you decide how to sell! Keep in mind, listing your land will cost you money both up-front and once the property closes. You must factor these selling costs in when pricing your land and deciding who you want to work with.
Studies show that the average amount it takes to sell land in the US is $9,200! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home.
Will Selling Cost You Money in Florida?
Agent Commissions – Commissions will typically run about 10% to 20% of the final sale price of the land. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your property.
Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.
Closing Costs – Closing costs include many items that are paid at the closing table. These include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees and more. Expect to pay about 2% of the final sale price in closing costs.
Taxes – When you list your land for sale, you are responsible for the property taxes, utilities and insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better!
Preparing Your Land for The Market – There is a lot of energy, time and money that go into getting land ready to sell. You will want to remove personal belongings, clean the property and prepare your land for selling. Whether you work with a professional or do it on your own, you are likely to spend money.
Inspections – While it certainly isn’t required, more and more sellers are paying to have their land surveyed before listing them. This will cost approximately $200 and up. This will give you negotiating power during the selling process.