Let’s face it – real estate is expensive! Buying both land and houses requires a sizeable amount of money. And the majority of us don’t have many thousands of dollars sitting around to buy some. Banks and other lending institutions often step in to close the gap. They allow buyers to buy real estate without paying so much cash up front. When banks loan a buyer money, they allow the transaction to move forward. The seller of the real estate gets their money in cash from the bank, and the buyer will make monthly payments to the bank in order to pay back the loan.
When buying and selling land specifically there’s a big problem with using a bank loan to pay for the sale:
Most banks won’t lend money to buy land.
While there are a few exceptions, few lending institutions will lend based on the value of the land alone. So if you want to sell your land, you’ll need to either sell the land on payments or find a cash buyer. There are pros and cons of each.
Selling Your Land On Payments
If you have time to wait for the money to come in over time, you can sell your land with a payment plan. You will collect pre-determined monthly payments for the land until the total amount of the sale is paid. This is a good option for someone who can wait for the total amount to come in, or if you know the buyer and just want to help them afford the land over time.
The downside of selling land on payments is that a lot of times a buyer never makes it to the end of the payment plan successfully. If they run short on cash, you can bet they would rather eat, make a car payment, or pay the rent more than they would like to make a payment on vacant land.
A lot of buyers never make it to those last payments.
Even if they do make the payments, you may spend your energy every month in the form of calls, emails, or visits getting the buyer to make their monthly payments.
If you are selling your land on payments to a close friend or family member, you probably have a good idea of how a payment plan might work for both of you. But if you are selling your land to someone you don’t know, it is harder to make sure you are selling to someone who will reliably make monthly payments until the purchase is paid off. You can run the buyer’s credit or do a background check to help increase the odds of getting a buyer that will be a good fit for a payment plan. While it does cost some money to do these things (especially if you have to do it for more than one potential buyer), it might be worth it to find the right buyer.
Selling Your Land For Cash
In most cases, a land seller is far better off skipping the hassles of dealing with a buyer who wants to buy with a payment plan. If you can find a buyer that has a way to give you the entire amount of the sale at one time, it simplifies the amount of time and energy you have to put into the sale as well. You won’t have to worry that the buyer will eventually stop making payments. And you won’t have to worry about chasing them down in the event that they do. Plus you will have a large sum of cash going in to your account at one time when the sale closes.
How To Find A Cash Buyer
Cash buyers can be difficult to find. Not a lot of people have enough cash free to buy land. If you have someone in your network of friends and family that has cash, it can be easiest to sell your land to them. Your network of friends and family may know others that can buy in cash as well. You can advertise your property for sale by owner or hire a realtor to sell your property, but that comes with its own difficulties. It also takes time and skill to show your property and negotiate a sale.
As a professional land buying company, Quick Land Solutions is ALWAYS a cash buyer.
We will always buy your land for cash, paying you in one lump sum at the time of the sale. You won’t have to deal with receiving payments over time. You won’t have to pay fees to realtors to help you sell your land, nor will you have to spend your time selling the property on your own.
Since you already know we want to purchase your land, you won’t have to chase us down to pay you. We are already working diligently to move the sale forward. We want the transaction to close as much as you do. Thanks to our experience, we know how to make land deals move forward fast. We will work hard to make sure you can get paid as quickly as possible for your land, and all at one time.
To read more about all the many benefits of selling to us, click here.
If you would like to sell your land for CASH, without dealing with a buyer that wants to make payments, click on the link below.
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