Why You Should Sell Your Land for Cash?
There are several advantages to selling your land to a cash buyer, but to increase my odds of you reading this entire article I’ve narrowed it down to 4 :).
One of the best benefits of selling land to a cash buyer is that the process is typically much faster than selling to a traditional buyer who needs financing. It can take several more weeks to finalize a sale to a buyer who requires financing vs. a cash buyer who has funds readily available. We can typically close a land purchase for cash in 3-4 weeks with our sellers.
Certainty comes in #2 on the list, but is probably my personal favorite! When you sell land to a cash buyer, you can be confident that the sale will go through as planned. If selling to a buyer who requires financing, there is always the chance that their loan will get rejected. If it does, you will be out several weeks and be forced to put the land back on the market. The next potential buyer will question if the sale fell through because something was “wrong” with the property. Selling to a cash buyer provides peace of mind and allows you to move on to other projects or investments.
Selling land to a cash buyer is also much simpler than working with a buyer who must go through the process of securing financing through a lender. There’s no guarantee your buyer will be approved for the loan, and the process can be time consuming and require additional steps. Also note that getting approved for a land loan is different from your traditional home loan. There are fewer banks willing to finance land, and the ones that allow land loans will require higher down payments, charge higher interest rates, and typically have stricter underwriting requirements than buyers face when financing a home.
#4 No Commission
If you sell your land directly to a cash buyer you do not need to pay a commission to a real estate agent. This can save you a significant amount of money, especially if the land is worth a large amount. Real estate commissions for land specific agents are typically 7-10% of the total sales price. This number is much higher than the average commission when selling your home.
While selling land to a cash buyer can have many benefits, it is important to carefully consider all of your options and choose the option that best meets your needs and goals.