Look at What You Would Keep
Got two offers for your land? Start with the price, then look at what comes out of it. A higher offer may leave you with less money if you pay more of the costs.
This calculator helps you put the numbers side by side. Use the amounts from your offers and cost estimates. It will not tell you what your land is worth, but it can help you see which questions to ask.
Before You Compare
- Use written offers so you can check the terms.
- Ask which costs you would pay.
- Leave unknown amounts blank until you have an answer.
Compare Your Two Offers
Fill in all three boxes for each offer. Enter 0 if you know a cost does not apply. If you do not know an amount yet, leave it blank and ask the buyer or the person handling the sale.
- Offer price: what the buyer has offered to pay.
- Selling costs: fees and other sale costs that you would pay.
- Debts paid from the sale: loans or other balances that would come out of the price.
The result is a rough amount you would keep after those costs. It does not include income taxes or costs you leave out. Your entries stay on this page. They are not sent with the contact form or saved when you leave.
Here Is How the Math Works
Say a buyer offers $50,000. You expect to pay $2,000 in selling costs, and $5,000 is needed to pay off a loan on the land.
$50,000 − $2,000 − $5,000 = $43,000.
In this example, you would keep about $43,000 before income taxes or any costs not listed. These are sample numbers to show the math, not expected fees for your sale.
Now say a second buyer offers $48,000 and pays all the selling costs. You would still pay off the same $5,000 loan. That also leaves $43,000 before income taxes and other costs. The first offer has a higher price, but these examples leave you with the same amount.
The Price Is Only Part of the Offer
Once you have compared the numbers, read the terms. Ask each buyer the same questions:
- What land does this cover? Make sure both offers include the same piece or group of pieces.
- Does the buyer need a loan? Ask what still has to happen before they can pay.
- What does the buyer want to check? Ask about visits, surveys or other checks before the sale can finish.
- Who pays each fee? Get a clear list. Ask which amounts are firm and which are estimates.
- When would the sale finish? Ask what could change that date.
- Can either side cancel or ask for more time? Read what the written agreement says. Ask for help with anything you do not understand.
A suggested asking price is different from an offer to buy. One is a price you might advertise. The other is a buyer's proposal with terms you can review.
Check That You Counted Each Cost Once
If a cost estimate already includes your loan payoff, do not subtract the loan again. Ask for a list that shows each fee and debt on its own. Use the same approach for both offers.
For example, if the total costs already include a $5,000 loan balance, adding that balance again would make the money you keep look $5,000 too low.
If the calculator shows a minus sign, the costs and debts you entered add up to more than the price. Check the numbers, then ask the title company or attorney handling the sale to explain the shortfall.
Want an Offer for Your Land?
Tell Reelvest about your land. Start with the location, rough size and what you know about it. If we make an offer, you can compare the written terms with your other options.
Keep your land details and papers handy so each buyer is looking at the same information. You decide which offer, if any, works for you.