Pros and Cons of Selling to a Mississippi Land Company

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Pros and Cons of Selling to a Mississippi Land Company
By

Bart Waldon

Mississippi is known as the Magnolia State, named after its state flower. It has rich agriculture, being a leading producer of cotton, soybeans, corn and rice. The state also has a long history tied to the Mississippi River and was home to indigenous peoples like the Chickasaw and Choctaw tribes before European settlement. Today, much of the land is prized for timber, cattle ranching and recreational uses like hunting.

When it comes to selling land in Mississippi, owners have a few options. They can try to sell the land themselves which takes time and effort for marketing and negotiations. Or they can work with a local Mississippi land company that buys and sells properties in the area. These companies, like Land Boss operating in the state for 5 years now, purchase land from owners outright in cash deals. This route offers convenience but may come with lower pricing compared to selling the land outright after extensive marketing.

Weighing the pros and cons between these two options is key for land owners looking to sell acreage or vacant plots in Mississippi. This article outlines key considerations in depth.

Factors Favoring Selling to a Mississippi Land Company

Selling land yourself, while possibly earning top dollar, comes with no shortage of challenges that can make the process drag on. Land companies aim to make the sale easy in exchange for purchasing the land at a discounted price. Here are some major advantages toward going the land company route.

Easy and Fast Sale Process

The top advantage of selling to an established local land company is avoiding the work of selling it yourself. Companies like Land Boss have industry knowledge and existing buyer networks that enable them to quickly appraise land and make fair cash offers. This takes much of the hassle out of having to personally market, show and negotiate with piecemeal interested buyers over months or years. Within weeks or less, owners can hand over the land and walk away with cash payment.

No Need to List, Market or Negotiate

Doing everything on your own to sell land can be immensely time consuming. Land owners face finding an agent, listing the property, marketing it through showings and open houses, fielding offers and going back-and-forth in negotiations. With a land buying company, they handle appraisals, make an offer and take all the property off your hands swiftly.

Cash Payment for Instant Liquidity

Rather than hoping for a top offer from buyers and financing terms, land companies pay hard cash relatively quickly after appraising and finalizing a purchase contract. For those owners looking for liquidity now or needing to sell for financial reasons, this speed and reliability is advantageous. Cash deals also avoid issues with buyers failing to be approved for financing.

As-Is Condition Sales

Selling land yourself often requires preparing the property for showing and listing through clean-ups, tree trimming, minor repairs or other improvements. Mississippi land companies specializing in vacant plots and acreage accept properties in as-is condition regardless of any overgrowth or issues. This saves major hassle particularly for rural land that’s been unmanaged by out-of-town owners.

No Waiting Years to Sell

Vacant overgrown land can be very tricky for owners to sell themselves and it may take 1-2 years or more to find an interested party. Mississippi land companies solve this by purchasing land that is challenging to sell, including rural acreage. Their expertise and networks specialize in buying and reselling such hard-to-move properties.

Drawbacks of Land Company Sale

The biggest trade-off when selling land to a specialist land purchaser is accepting a lower price than potentially possible. There are also a few other notable drawbacks to weigh.

Discounted Sale Price

Land companies need to purchase properties below market value in order to profit from their resale. So, their cash offer pricing is almost always lower than the top dollar an owner may eventually get from marketing and selling the land outright themselves. Owners must determine if the convenience merits accepting a 20%-50% discount or more off potential market prices.

Risk of Future Appreciation

Once land is sold off to a land company at a set agreed price, the seller loses out on any future price appreciation if the market in the area improves significantly later on. Whereas if they waited to sell outright, they could potentially benefit from rising property values over time. This possible missed upside should be factored in.

No Residual Stake

An outright sale to a land company releases owners from any further responsibility, work or liability for the land. However, they also lose any residual stake or interest going forward such as rental income or appreciation. So, it cuts ties fully compared to seller financing deals.

Due Diligence Checks

Land purchasers conduct due diligence on properties to uncover any issues with titles, boundaries or back taxes owed. So, land owners must open their records and acreage to inspections if they decide to go this route. The company may not close or lower offers substantially if problems are found.

Key Considerations Before Selling Land

Land owners exploring the option of selling to a specialist Mississippi land company should weigh a few key factors while negotiating to achieve the best outcome.

Seek Multiple Offers

Rather than taking the first low offer that comes in from a land company, it is wise to contact 3-5 prospective buyers for price estimates. Share the same property details and have them submit their best offers for comparison. This enables assessing the current market appetite and realistic pricing.

Negotiate the Sale Price

Know that the initial offer from a land buying firm is their starting point but it may not be their best price. Educate them on any special or valuable features of the land. See if they can improve terms once they complete due diligence and confirm details. Reasonably negotiating 5%-10% higher pricing is often realistic.

Study Recent Comparables

Researching the sale prices, days on market and buyer details for recent vacant land transactions in the immediate local area provides perspective. If plots very similar to yours sold for significantly higher prices recently, bring this to the land company as leverage to improve the initial offer.

Insert Conditions if Needed

If needing more time to vacate the land or harvested crops still on it, build contingencies into the purchase contracts like 60-90 day closing terms or crop rights post-sale. Companies may accommodate reasonable conditions if they can still target reselling quickly.

Consult an Attorney

Getting neutral legal advice when reviewing and signing major property sale paperwork is always advisable. Consulting an attorney specialized in real estate transactions costs a few hundred dollars upfront but ensures you understand and secure the best deal terms. They also review title records to confirm you legally own the land being sold.

Making the Best Decision for You

Selling vacant overgrown land or rural acreage yourself in Mississippi can certainly be challenging and time intensive. Specialist local land companies like Land Boss aim to make it simpler by buying for cash, as-is, and handling everything from valuation to closing. Yet this convenience comes with discounted pricing that cuts into potential appreciation later.

Carefully weigh personal factors like desired liquidity, capacity and need to prepare land for sale yourself, and tolerance for extensive marketing efforts. Seek multiple bids from land buyers to compare against current market activity. With reasonable negotiations, land owners can secure the best value for their unique situation while still addressing companies’ needs to profit long-term off buys.

Getting professional legal advice plus understanding recent land sale patterns in the immediate area are also wise moves before finalizing any major property transactions with Mississippi land companies. With the right advisory support and strategic approach, land owners can strike that ideal balance of simplicity and fair market pricing.

Frequently Asked Questions (FAQs)

What types of land does a company like Land Boss purchase?

Land Boss and similar Mississippi land buying companies typically purchase a wide range of vacant land, raw land, acreage plots, partial plots and even houses/properties requiring rehabilitation. As an experienced land investor, few property types are out of scope provided discounts meet their investment criteria.

How can I get the highest price for my Mississippi land?

To maximize sales pricing, landowners should list properties with local real estate agents or brokers to market to the widest pool of potential buyers. Be prepared for an extensive, months-long selling process requiring carrying costs and taxes though. Pricing will also need to be competitive based on recent comparable land valuations and demand within respective area.

Are there any closing costs if I sell to Land Boss?

No. Reputable land buying companies like Land Boss cover all closing and title transfer fees themselves, allowing net proceeds from the discounted purchase price to go fully to the land seller at closing. There are no hidden seller expenses later.

How long does Land Boss take to make an initial offer?

Land Boss issues initial no-obligation offers usually within 1-3 business days of receiving basic property details. Quick offer turnaround allows land sellers to assess potential value early with no delays.

Can I negotiate purchase pricing with Land Boss?

Given their discounted buying model, companies like Land Boss have little flexibility for buyers to counteroffer pricing. Initial offers reflect what they can feasibly pay and still profit. Sellers can request reevaluation if new data becomes available however the company may stand firm based on existing fair market value analysis and core risk-return thresholds.

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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