Are you thinking about selling land in Houston? If so then you might be wondering this common question: who pays when selling land in Houston. 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. Makes sense. At first you might think that the buyer pays the seller. But that’s not really how it works and you might be surprised at who pays when selling land in Houston…
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 geologist to look at your property and tell you what potential it has. Sometimes there are issues with the survey that could take months to resolve. There also could be a neighbor that is encroaching on your land, whether intentionally or not. This is actually a very common problem faced by owners of land or lots in Houston. Often, a neighbor will put up a fence that is actually within your property limits, thus adding square footage to their own property. It may be necessary to ask the neighbors to move the fence, which can be troublesome and time consuming.
Then you’ll work with a real estate agent to try and sell the property. There will probably be additional expenses that you’ll have to cover while the agent tries to find a buyer. 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. An agent may also suggest that you clear any trash or growth on the land that may have accumulated over the years. This will likely involve hiring someone who can dispose of any debris, which can be costly.
After any needed work is done, an agent will try to find a buyer for the property. When an agent does find a buyer, then you may need to work with a lawyer, a title company, and potentially others as well to complete the paperwork. Yes, YOU are paying for all of this the entire time.
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). 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). If the buyer is using financing through a bank to purchase the property, it may take longer to close, as the bank will want to complete due diligence on the property before they lend any money for financing.
Even once a buyer is found, 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.
So, to answer the question, “who pays when selling land in Houston,” the answer is that you’ll pay over and over and the buyer or their bank will pay you once.
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. 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 or lot); 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.