When you first read that headline, your first thought might be something like “Wait a second…I am the seller, I thought the buyer pays me, right?” If that’s the case, then you might be surprised to learn that if you are planning on selling your vacant lot or land in Boulder, then you as the seller are likely going to have to pay before anyone pays you.
When Selling Land in Boulder, the List of Payments a Seller Makes is Longer than You Might Think
If you own land in the Boulder area and are thinking of selling it, no one would blame you if you thought this pretty much involved you handing the deed over to someone in exchange for a check. This is how most common sales relationships work. But, when considering the size of the investment, things get a little more complicated. To attract serious buyers, a seller needs to do a few things – each of which comes at a cost.
Payment #1: Site Analysis/Survey
First things first, you are going to need to know the value of your land and what you can expect to get for it. How do you do this? You hire someone to analyze the property. Depending on the location and land itself, you may need a geologist or other specialist. Long before you receive any check for your property from the future buyer, you’ll need to be paying for services like these.
Payment #2: The Realtor
You next need to hire someone to help you list and market the property. Realtors will do this at a cost and also charge you additional fees when it comes time to find and work with the buyer.
Payment #3: Utilities, Upkeep, and Bills
Many landowners, in their eagerness, forget that it takes time to sell the property. During that time, any bills, taxes, insurance, mortgages, or other related expenses owed on behalf of the property will be yours to pay. Depending on the market in the area of your property, you could be paying these expenses for months on end.
Payment #4: Closing Costs
Once you’ve located a buyer and begin the negotiation process, there are many other fees you’ll have to pay as the seller. These include lawyer fees, title fees, and any others associated to complete terms and paperwork. Again, these expenses are all covered by the seller before they receive any payment from the buyer.
Payment #5: Mortgages & Liens
After the sale is complete, you will finally get paid, but not before any mortgages or liens owed on the property come out of the sale price. There may also be a final agent commission unrelated to other fees depending on how you find your buyer. Most of the time, agent fees are paid by the seller.
Is there a Way for a Seller to Avoid Having to Pay All These Fees?
Though listing with a Realtor is the right option for many landowners in Boulder looking to sell their land or vacant lot, it isn’t right for everyone. If you do not have the cash to cover these expenses or don’t have the time to wait for months on end while the costs stack up, there is an alternative. For many sellers, having a quick, reliable way to sell their unwanted land or vacant lot while also bypassing all of the fees above makes sense. Boulder Home Buyers buys vacant lots and undeveloped land in the Boulder area. We buy them ourselves, so we can pay cash upfront without the need to go through a bank for approval.