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:
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.
Many people use borrowed money to purchase rural land. If…