How to Sell Land for Cash in Minnesota

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How to Sell Land for Cash in Minnesota

Bart Waldon

As America’s breadbasket with over 7.7 million acres dedicated to corn and soybean farming alone spanning 69,100 total agricultural operation statewide according to the latest Minnesota Department of Agriculture figures from 2022, the state offers abundant options converting dormant properties into brisk cash liquidity for those seeking accelerated sales. This is especially pivotal where inherited or underutilized farmland acreage may burden beneficiaries with taxes and upkeep instead of positive cash flowing.

However, with average cropland valuations currently ranging from $6,500 per acre in northwest Minnesota’s Red River Valley to over $12,000 per acre in fertile southern districts – representing statewide spikes of over 20% year-over-year - savvy sellers must price reasonably attracting investors and commercial farming entities still guaranteeing deals close quickly. Carefully aligning both land parcel attributes and knowing buyer target profiles enables negotiating successful sales transactions fluidly through optimal market timing while ensuring buyers still secure equitable returns, befitting real risk tolerances. Weighing priorities around valuation peak versus expedited cash deal velocity proves essential progressing strategies. What further questions can be answered, illuminating paths ahead for a potential Minnesota land sale?

Overview of the Minnesota Land Market

You name the outdoor pursuit, and Minnesota probably has ideal real estate to pursue it. The state has cultivated a strong market around both residential and commercial land catering to lakeside living, recreation, hospitality, and development. The economic heart lies in the bustling Twin Cities metro area where the downtown corridors of Minneapolis and St. Paul drive urban growth. Yet even in the most remote counties barely dotted on the map, sprawling rural acreage retains inherent value given Minnesota's rich agricultural, forestry, and conservation resources. Ultimately a property's appraisal depends on the interplay of location, terrain, infrastructure, zoning allowances, and any existing structures on site. But broadly speaking, if you have land in Minnesota, you have land in demand.

Challenges of Selling Land in Minnesota

Even in a hungry buyer's market, closing on property here is no walk around the lake. Multiple factors collude to complicate deals:

Skittish Pricing - Pinning down an accurate listing price proves difficult when fluctuating crop values, development sprees, and resource stock sway appraisals. Values spin like a weathervane in this state.

Looming Expenses - Long before ink dries, the nickel-and-diming starts on survey fees, appraisal costs, inspection bills, legal retainers, taxes and more. These stack up quick when sellers lack serious buyer bites.

Dragging Timelines - Traditionally, sellers must expect their vacant acreage to occupy MLS purgatory for 1-2 years or more here. Without smart marketing, it flatlines into obscurity.

Financing Maze - Moreover, most buyers need lending to purchase property. Navigating that underwriting quagmire tacks on further holdups.

Faced with those pitfalls, some desperate landowners snatch up subpar first offers. But rather than settle, educating themselves on options to sell for cash can yield faster, more profitable land deals.

Selling Land for Cash in Minnesota

Selling land for cash allows sellers to close quicker by avoiding financing contingencies from buyers. Additionally, cash sales eliminate costs wasted marketing land that sits unsold for long periods. Landowners looking to sell for cash in Minnesota have a few options:

List With a Cash Buyer Company

Working with established cash land buyers like Land Boss is one of the simplest ways to divest land for instant cash in Minnesota. These companies purchase land and property directly from sellers using their own capital. Benefits of selling land to a cash buyer include:

  • Fast Purchase Offers - Reputable cash buyers assess land value swiftly and provide competitive offers shortly after contacting them. For instance, Land Boss issues offers within 5 business days or less.
  • Higher Net Proceeds - Cash buyers have lower overhead costs compared to selling through an agent or auction. Greater proceeds go directly towards paying off the seller.
  • Flexible Close Dates - Cash deals enable flexible close dates aligned with the seller's needs rather than buyer financing. Deals can close in as little as 7 days.
  • Personalized Service - From initial consultation through closing, cash land buyers provide guidance and expertise to sellers on maximizing value.

For those looking to sell land quickly in Minnesota, connecting with an established cash buyer like Land Boss streamlines the process.

Auction Through a Realtor

Hiring a real estate professional to auction land is another common option to advertise property to cash buyers. Auction methods like sealed bid can generate urgency among potential buyers. Benefits of auctioning through an agent include wider marketing exposure and convenience of having a realtor handle closing paperwork.

However, seller profits are often lower after paying agent commissions and other auction fees. And if reserved bid prices don't get met, the land may not sell at all. Realtors also cannot control bidder financing abilities which can delay closing.

DIY Platform Listings

Putting land up for sale independently on DIY platforms like Craigslist or Facebook Marketplace is another low cost way to potentially connect with cash buyers. These direct listings allow sellers to advertise land themselves without paying commissions.

But DIY platforms offer little support in screening buyers, negotiating prices, or handling closing details. Landowners also lose out on the extensive marketing reach of realtors or cash buyer companies. DIY ads can sit for months before sellers find an qualified cash buyer willing to pay fair value.

Tips for Successfully Selling Land for Cash

Selling land through a cash buyer like Land Boss is typically the simplest route to get fast cash with less hassle. But all land sellers should keep a few key tips in mind:

  • Get Recent Appraisals - Getting professional appraisals from at least 2-3 sources gives sellers key info to appropriately price land. Both market value and liquidation value matter when claiming cash for property.
  • Evaluate All Offers - Cash buyers may propose offers at wholesale pricing well below market rates. While discounts incentivize buyers, sellers should carefully weigh if the payout aligns with needs before accepting.
  • Advertise Broadly - Marketing across multiple platforms expands visibility to serious cash buyers. Partnering with a cash buyer company still allows sellers to list land independently as well.
  • Act Fast with Financed Buyers - If sellers opt to list through traditional MLS or auctions, require pre-approval letters from financed buyers. This verifies funding ability to prevent delays.
  • Consult a RE Attorney - Real estate attorneys help sellers review purchase contracts before closing. Legal guidance prevents unfavorable terms and ensures processes adhere to state regulations.

The keys to selling land for cash ultimately depend on the seller's specific situation. Connecting with a reputable cash land buyer simplifies the entire land sales process for most owners. Their team of experts handle assessing property values, marketing nationally to buyers, negotiating fair pricing, and closing sales securely under the direction of legal counsel.

Get a Fair Cash Offer on Your Land

Trying to offload land yourself through traditional channels can quickly become an expensive, frustrating endeavor in Minnesota. Partnering with established cash land buyers simplifies the entire sales process while achieving fair pricing for sellers in the state.

Their team strives to provide win-win pricing by discounting land enough to profit, while keeping payout worthwhile for the seller’s situation. With an extensive track record facilitating cash sales in Minnesota and serving thousands nationally, Land Boss has the expertise, resources, and passion to make land liquidation seamless.

Their customer-focused consultants offer guidance tailored to a seller’s motivations and goals when selling land for cash. Customized sale terms, flexible close dates, and ability to market property widely provides sellers added options. There are no obligations or fees - Land Boss assesses land value upfront and provides fair cash offers within 5 business days in most cases. Sellers simply connect when prepared to divest land for cash.

FAQs on Selling Land for Cash in Minnesota

Sellers likely have more specific questions on the process of selling land for cash in Minnesota. Here are answers to some frequently asked questions:

How long does it take to sell land for cash in Minnesota? 

Working with a cash land buyer like Land Boss enables sales to close in as little as 7 days in Minnesota. Much faster than traditional land sales through a realtor which typically close in 60-90 days at minimum.

When should I sell land for cash versus finance a sale? 

Cash sales make the most sense when sellers want to divest land quickly with minimal hassle. Motivations might be avoiding tax liens, paying medical bills, or investing capital elsewhere quicker. Financed sales can earn slightly higher sale pricing but have longer timelines.

What taxes are owed when selling land? 

Minnesota levies a deed tax on property sales paid by the seller. Deed tax varies by county but averages around 0.33% of the final sales value. Some counties also charge state documentary stamps around 0.2% unless exemptions apply to the transfer. Capital gains tax applies on any investment land sold at increased value since original purchase.

Can I require a buyer's earnest money deposit? 

Yes - requiring good faith deposits from buyers is recommended with any sale. Typically between 1-10% of purchase price. Held in escrow by seller broker until closing. Ensures buyer seriousness and covers some seller costs if buyers rescind offers.

What land improvements should I make before selling? 

Major improvements like adding utilities, irrigation, or buildings generally won't provide ROI when selling raw land for cash. Simple brush clearing, basic road/driveway access, grading, and boundary marking improve land visibility and access. Check with buyers on useful improvements first.

How much below market value do cash buyers usually offer? 

Cash buyer offers vary based on urgency of the seller more than fixed discounts. Wholesale deals around 60-70% of market value do happen. But reputable buyers like Land Boss strive for win-win pricing - discounting enough to profit while keeping payout worthwhile for the seller.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.


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