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Minnesota is known as the "Land of 10,000 Lakes" thanks to its abundance of scenic, glacier-carved lakes dotted across the landscape. Beyond the lakes, Minnesota also has extensive farmlands, forests, wetlands, and other private land holdings. For landowners in Minnesota, deciding what to do with your land can be a major decision. Selling to a local land buying company is one option to consider.
Understanding Minnesota’s Land Market
With over 50 million acres of land area, of which over 30 million acres are utilized for farming, Minnesota has an active land market. The type of land most commonly sold in Minnesota is agricultural land, followed by hunting/recreational land, vacant residential or commercial development land, and land with lake frontage.
Land prices in Minnesota have generally been on an upward swing in recent decades, although can fluctuate year-to-year based on crop prices, interests rates, local supply and demand, and other macroeconomic factors. As of 2021, the average per-acre price for agricultural land in Minnesota was approaching $5,000. Prices for good hunting or lakefront land often reach over $10,000 per acre.
The Option of Selling Land to a Local Land Buying Company
For those looking to sell land in Minnesota, one option is selling to a local land buying company or land investors. In Minnesota, there are a number of real estate investment companies and land buying firms looking to purchase privately-owned land for investment purposes or to add to their retail land selling portfolio.
Below, we’ll take a close look at the major pros and cons of selling your Minnesota land to a dedicated land buying company.
Pros of Selling to a Minnesota Land Buying Company
Cash for Your Land - The biggest advantage of selling to an established local land buyer is that they have the ability to pay all cash for land purchases, whereas selling through an agent often involves bank financing contingencies. This provides certainty of closing.
Avoid Hassles of Listing Land - Listing land on the open market involves hiring an agent, marketing the property, hosting land showings, negotiating offers, and waiting out closing periods. Land investors make it a seamless process.
Sell Land “As-Is” - Good land buyers purchase land in any condition—swamp land, junk land, land with buildings, etc. There’s no need to clear land or prepare it for sale when selling to a land investor.
Close Deals More Quickly - While it may take 6 months to 2 years to close a land deal on the open market, most land investors can close within 30-60 days. This provides faster access to funds.
Potentially Higher Net Proceeds - Land investors focus on the land value only whereas open market buyers may need to demolish structures, clear trees, etc. which affects offer prices. Land buying companies also have lower closing costs.
Avoid Paying Agent Commissions - Listing with a broker often incurs a commission fee of 5-10% of the sale price. These fees are avoided by dealing directly with a land buyer.
Prevent Tax Foreclosure - Those facing county tax foreclosure can sell to a land buying company and recover some equity rather than losing their property altogether.
Cons of Selling Land to a Land Buying Company
Receive Less Than Full Market Value - The tradeoff for speed and certainty when selling to an investment land buyer is that they will pay below full open market value in order to profit from the deal. Average offer prices can range from 50% to 80% of market value.
Lose Potential Appreciation - Similarly, selling to an investor means losing out on any near-term or future appreciation if the land were to be held longer or developed. Many land buying companies aim to acquire undervalued land.
Tax Implications - The discounted sale price may have capital gains tax implications compared to selling at full market price through an agent or auction (consult a tax advisor about implications).
No Involvement After Sale - After the sale closes, the land buying company assumes full ownership and control—for better or worse. The previous landowner has no say or involvement in how the land is used going forward.
Buyer Flips or Resells the Land - There is generally an expectation that these land buying companies will market and resell land commercial properties at a higher price point for profit. Previous land owners will not share in any profits if the land sells for more down the road.
Key Tips for Selling MN Land to a Land Company
If you decide to reach out to a Minnesota land buying company or land investors about purchasing your land, keep these tips in mind to help ensure the best price/offer:
Find Out Who the Buyers Are Targeting - Research the land buyer online and request info about their target properties. Find buyers actively purchasing your land type in your county.
Get Quotes from Multiple Companies - Contact 3-5 active local land buyers to request offers. This allows you to compare and negotiate. Some may specialize in deer hunting land for example, while some may target waterfront.
Consider Bundle Discounts - If you own multiple land parcels in the area, some investors provide a “bulk discount”. Closing all your land with one buyer can maximize sale proceeds.
Be Flexible on Close Date - Inform buyers you can close quickly—land investors build in longer timeframes to their pricing. Urgency can produce higher offers.
Walk Your Land First -features or have subdivision/development potential. Pointing out property potential boosts land value.
Price it Right from the Start - Research pricing for comparable vacant land that has sold in your county recently rather than starting too high and having to reduce later.
Why Choose Land Boss for Selling Your Minnesota Land
When selling land in Minnesota, choosing the right buyer is key to maximizing your returns while avoiding hassles and delays. As a reputable Minnesota-based land buying company, Land Boss stands out as a trusted choice for seamlessly selling land across the Land of 10,000 Lakes region.
Years of Experience
With over five years of experience specializing in land buying and selling in Minnesota, Land Boss has an established track record with over 100 successful deals completed to date. We know the local land market well, allowing us to make cash offers based on current market comparables. Our extensive experience translates to faster, surer transactions.
No-Hassle, As-Is Purchasing
Unlike finicky open market buyers, Land Boss does not require any land clearing, cleanup, building demolition, or subdivision preparation before purchase. We buy properties “as is”, whether swamp land, partially-wooded, junkyard properties, land with dilapidated buildings, or anything in between. Avoid headaches and just sell your land easily for cash.
Quick Closings & Cash Payment
By working directly with Land Boss as buyer, you avoid the long and uncertain closing timelines involved when listing a property through an agent. We can close in as little as 30 days, and once closed, you get your proceeds via cash payment right away instead of waiting on buyer financing. Our quicker process puts cash in your hands faster.
Selling land does not need to be complicated or time consuming. With Land Boss as your buyer, the process is straightforward and designed for speedy transactions. Contact us today to explore your options if you are looking to sell land for cash in Minnesota.
Conclusion on Factoring in Land Sale Options
Deciding whether to sell your Minnesota land holdings to a local land buying company involves weighing out the pros and cons based on your situation. While open market and auction sales may potentially yield higher pricing, land investors offset this by offering guaranteed all-cash deals, closing speed, and buying land as-is. This provides an simple, efficient exit option that landowners should factor into their decision making process around maximizing land sale returns.
Frequently Asked Questions (FAQs)
How long does it take to sell my land to a land company?
Most Minnesota land buying companies can close deals within 30-60 days, much faster than listing land on the open market which may take 6 months to 2 years to find a buyer and close. Their ability to pay cash and waive contingencies results in a streamlined process.
How do I determine if a land buying offer is fair?
Research the current sale prices for comparable vacant land parcels of similar acreage and features in your county. Also get bids from multiple land investors and compare. Consider that their offers will likely range from 50% to 80% of market value.
Should I consider paying agent commissions if I list my land instead?
Land buying companies allow you to avoid real estate agent commissions of 5-10% which would cut into your net sale proceeds. Unless you expect your land to sell at significantly above market prices, agent commissions may eat up any higher offer prices.
What if I have back taxes or other liens on the land?
Many land investors will buy properties with back taxes, easements, judgments or other title issues. They have access to funds to clear any encumbrances and will factor this into their offer. Listing on an agent may scare away buyers unwilling to take on these issues.
Can I negotiate pricing if the offer seems low?
You generally have more flexibility to negotiate with small regional land buying companies than you do a national franchise. Have fair market comps ready and be willing to close quickly. Many buy under market value but still aim for win-win deals with motivated sellers.
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