LandInvestors.com Forums **Ask A Question** selling to land professionals

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  • #1749

    Kevin Rhatigan
    Participant
    Post count: 107

    @jilldewit
    @stevenbutala
    @mikedugan
    @luketsmith
    @claire

    Hi all,

    I have an opportunity to sell five parcels to a land professional. We agreed on a price but when he sent the contract it states that he wants me to pay the 2015 taxes on all the parcels.

    Is this normal? It is still an okay deal but it means an extra $327 in cost for me if I cover a full year of taxes on the parcels (there is an option to pay half a year of taxes)

Viewing 5 replies - 1 through 5 (of 5 total)
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  • Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    A bird in the hand is better than two in the bush.

    5 properties out the door, a buyer to sell lots more too. Use the money to do another mailer. Hit it harder next time.

    Kevin Rhatigan
    Participant
    Post count: 107
    Pro

    Thanks Luke, that’s the way I was leaning, you helped me decide!

    Aaron
    Participant
    Post count: 96
    Pro

    I would take it. If you had to sell all 5 properties to 5 buyers that extra effort wouldn’t be worth $327 to me.

    As far as “is it normal” well when I am negotiating real-estate purchases I always try to get as much in my favor as possible (without being stupid about it)…let the other party say no or counter, its part of negotiations

    Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    @kevinrhatigan

    I usually write in my Purchase Agreement something like this: Purchase price is net of all property taxes, dues, and/or fees.

    That means I am “out” at whatever the sales price is and buyer is to assume any leftover taxes.

    Having said that, it sounds like you are getting a good price and happy with the overall transaction. Since that was kind of sprung on you, you certainly could go back and renegotiate if you like. Or just chalk it up to “that buyer” and be prepared to add a doc/prep fee or something to cover these situations.

    Kevin Rhatigan
    Participant
    Post count: 107
    Pro

    @jilldewit

    Hi Jill,

    Thanks for the good advice. I was leaning towards taking the deal and will do so. Next time around I’ll just be aware that this is what this buyer expects and add current taxes into my cost before I agree to a sale price. Chalk it up to learning the biz

Viewing 5 replies - 1 through 5 (of 5 total)

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