When Buying Rural Land: Consider Closing Cost

 Both a buyer and seller will spend money to get to the closing table.  These expenses are known as ‘closing cost’.

Kinds of closing cost

Some of these expenses are large (a survey of 160 acres can cost $8,000) and some are small (Alabama property taxes are typically $1 to $2 per acre)..  These may (or may not) include:

• a title exam
• title insurance
• land survey
• loan costs
• real estate fees
• property taxes
• closing attorney fees
• recording fees

Who pays closing cost

Which expenses the buyer pays and which ones the seller pays is part of the negotiation when purchasing Alabama land.  In general, the stronger the contract price, the more willing a seller will be to pay closing costs.  The opposite is also true.

Avoid being ‘penny wise and pound foolish’

The point is, don’t let who pays the $150 for taxes spoil the deal and don’t forget that the unexpected costs of rural land can add considerably to your purchase price.