Costs when you list land
- Commission. Negotiable, and set in your listing agreement.
- NC excise tax. $1 per $500 of price, paid by the seller when the deed is recorded (G.S. 105-228.30). For example, a $200,000 sale carries $400.
- Attorney and closing charges for deed preparation and seller-side items.
- Holding costs while it sits: property tax, insurance, mowing or bush hogging, HOA dues.
- Prep costs buyers may expect: a boundary survey, a septic soil evaluation or Improvement Permit, clearing, a perc pit backhoe.
- Price reductions and concessions if the land sits or buyer diligence turns up problems.
Why land listings can sit
Many retail land buyers need a land loan, which typically requires more cash down than a home loan and may require plans. Buyer due diligence on septic, access and utilities can also take weeks, and a failed evaluation can end the contract. That is time you keep paying taxes and wondering.
Costs when you sell direct to a builder
- No commission.
- Closing costs: Forma can pay the seller's closing costs and excise tax, written into the offer.
- No prep costs: we do the research and pay for any surveys or evaluations we need.
- Lower headline price in some cases, because the builder takes the risk and the work.
When we will tell you to list
If your lot has public sewer and water, clean title, good access, is in a strong neighborhood, and you have time, the open market may pay more than we can. We will tell you that. If the land has complications, or you value certainty and speed, a direct sale is worth comparing.
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*Assumes the buyer pays the seller's closing costs and excise tax, which Forma can do and writes into the offer. Mortgage or tax payoffs come out of either sale equally, so they are left out. This is an estimate, not tax or legal advice.