Selling real estate might seem like a long process, and sometimes it is, but it does not have to be. Depending on your ownership status, you can sell your property, and have cash in hand, within a matter of hours. But your ownership status is critical in order to do this. For example, the best case scenario is you own the property outright and do not have any liens or encumbrances on the title. In situations like this, a new title could be drawn up, signed, witnessed by a notary, and have cash in your hands all in the span of a couple of hours.
The process will take more time if need the best and highest offer, or if you own the land with several other people. Living out of state may delay the process as well since the deed will need to be signed, notarized, and mailed back so that it can be recorded at the local county courthouse. Title issues like liens can also prevent you from closing quickly.
Here are the steps you would have to take to receive cash as quickly as possible.
- Finding a Buyer – The very first thing you will need to do is find a buyer. This can take a long time if you don’t know where to look. I recommend you first ask family and friends. This would be ideal because you know the buyer and trust them. However, if no one you know wants to buy the land, your next best option is to google “sell my land” or “land cash buyer” and include the town your land is located in. Searching these terms in google will produce a list of cash buyers in the area that are ready and willing to buy your land for cash and close quickly. These folks are usually familiar with the local real estate closing process and can handle everything for you. Another option you have is to list with a real estate agent. This process may secure you a higher offer for your land, but the process will take significantly longer and the agent will charge you a commission or listing fee. The commission and fees will usually range from $500 plus.
- After finding a buyer you can begin the negotiation process. Sometimes you have a number in mind and can share it with potential buyers. This is a good strategy for level setting the price. By stating your number first you establish a baseline for negotiations. However, if you do not know how much you want feel free to ask the buyer to make you an offer. This method puts the burden of establishing a price on the other person. I personally would recommend you set the price. Worst case they offer you 10-20 percent less and you counter back with a slightly lower number than your original. Best case they accept the price.
- Once negotiations are done the buyer will research the property to ensure that the title is “clean”. A “clean” or “clear” title is required if the buyer wants to improve the property or if they want to resell it in the future. An investor will forgo the title research process in order to secure land for less than market value. This is an important note. An investor will only buy your land if they can buy it for less than market value. The investor is actually taking on significant risk to do this because more thorough research could reveal title defects. Which would make reselling difficult or impossible.
- After the buyer has performed his research a new title can be drawn. If you are working with a professional buyer and you are doing a quick close, the buyer will draw up the deed himself. If you want to draw up your own deed you can. I recommend that you copy the most recent deed word-for-word and only replace the names of the grantor (seller) and grantee (buyer) with the appropriate names. This is an area of extreme risk for the buyer. Any mistakes made to the deed can be catastrophic.
- After the deed is drawn you and the buyer will need to meet with a notary to sign the deed. This is also the point at which you collect your cash money. DO NOT give over the deed until you receive money. Depending on the amount you may want to consider a cashier’s check. However, never accept a personal check.
And that is it, folks. It may seem like a lot but an experienced buyer can handle all the steps outlined above. As the seller, you only have to worry about signing the deed and collecting your money. Anything after that is not your problem and that includes problems with the land or deed.
I hope you found this information beneficial. We at Palmetto Land Buyers are professional buyers and would love to make you an offer on your land or house. If you have any questions feel free to reach out at 803-201-9137