Michigan

Selling Land in Michigan: Year-End Guide 2025

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Quick answers

  • USDA reports in 2025: U.S. cropland averages $5,830/acre and farm real estate $4,350/acre. Michigan values vary by county and use. See USDA Land Values 2025.
  • To sell: set a fair price, prepare land, collect documents, choose method (agent, FSBO, cash buyer), market, and close.
  • Cash buyers often close in 2–4 weeks. Listings with an agent or FSBO often take 3–6 months.
  • Sellers may owe federal capital gains and Michigan 4.25% state income tax in 2025. See IRS capital gains and Michigan Treasury 2025 rate.
  • You can sell inherited land, land with liens or back taxes, or while living out of state. Always close with a licensed title company or attorney.

Expert insight

From working with Michigan landowners, I have seen most delays come from missing paperwork. Buyers usually ask for a recent survey, proof that property taxes are current, and zoning information. When these are ready before listing, closing moves faster and with fewer surprises.

I have also seen wide differences in land prices across the state. National USDA data shows cropland averaging about $5,830 per acre in 2025. In practice, parcels near Ann Arbor or Detroit can sell above $15,000 per acre, while rural Upper Peninsula tracts may sell closer to $2,000 to $3,000 per acre. This is why checking local sales and preparing documents early makes a real difference for Michigan sellers. See USDA Land Values 2025.

Table of Contents

Why sell land in Michigan at the end of 2025?

Many buyers finish purchases before December 31 for tax planning. Farmers and builders buy in winter to prepare for spring. Fewer listings in the holidays can help your land stand out.

How much is land worth in Michigan in 2025?

USDA reports national averages for land in 2025. Michigan values vary widely by county, soil, and location. See USDA Land Values 2025.

Category

2025 USDA U.S. average

Notes for Michigan

Farm real estate

$4,350/acre

Lower in UP and rural counties, higher near metro areas

Cropland

$5,830/acre

Stronger in central and southern MI, weaker in UP

Pastureland

$1,760/acre

Michigan up about 4.4% year-over-year

Local sales may be much higher near Ann Arbor, Grand Rapids, or waterfront parcels, and much lower in northern or Upper Peninsula counties. Check county property records for local sales data.

How can I know my land’s price?

How do I know if selling now makes sense?

  • Property taxes or upkeep feel heavy.
  • You do not use the land.
  • Local demand is strong.
  • You need cash for other goals.

What are the steps to sell land in Michigan?

  1. Find value using comps, USDA data, or an appraisal.
  2. Prepare land by mowing, clearing brush, marking edges, and checking access.
  3. Collect documents such as deed, tax bills, survey, and zoning info.
  4. Choose a method to sell: agent, FSBO, or cash buyer.
  5. Market the land with photos, online listings, and signs.
  6. Review offers and compare price, terms, and funding.
  7. Close with a licensed title company or attorney.

Where do buyers come from?

  1. Farmers expanding acreage
  2. Builders and developers
  3. Families wanting rural lots
  4. Hunters and outdoor buyers
  5. Investors who like land as an asset

Should I use a realtor or sell myself?

Realtors give MLS access and handle marketing and contracts. They charge a commission. Selling yourself saves that fee but you manage the work. Cash buyers can close fast but usually offer less than the open market.

How long does it take to sell land?

  • Cash buyer: 2–4 weeks
  • Agent or FSBO: 3–6 months
  • Spring and summer are often faster

     

For market context, see USDA Land Values 2025.

What documents do I need?

See Register of Deeds directory for county deed offices and state plat records search.

Ready to Sell Your Property?

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What if I lost my deed?

Get a certified copy from your county office. Use the Register of Deeds directory to find contact details.

Do I need a survey?

No. Most buyers prefer one. It builds trust and helps closing

What does it cost to sell land in Michigan?

  • Realtor commission if you list
  • Title and closing fees
  • Recording and transfer taxes set by county and state
  • Survey if needed
  • Cleanup and mowing if needed

Do I pay taxes when selling land?

If you sell for more than you paid, you may owe federal capital gains and Michigan state income tax. For 2025, Michigan’s individual income tax rate is 4.25% per Michigan Treasury. See IRS capital gains for federal rules.

Can I sell if I owe back taxes or a mortgage?

Yes. Balances are paid from your sale proceeds at closing.

Can I sell inherited land?

Yes. Title must be in your name before selling. Many estates use probate to transfer ownership.

See Michigan Legal Help probate overview. Your local court may have forms and guides.

Can I sell if I live out of state?

Yes. You can hire a Michigan agent or give power of attorney to a trusted person. Title companies handle most steps remotely.

Can I sell my land without a realtor?

Yes. FSBO is allowed.

  1. Set a fair price
  2. List on major sites and local classifieds
  3. Post signs on the property
  4. Talk to buyers directly
  5. Close with a licensed title company

How do buyers pay for land?

Many buyers pay cash. Some use land loans from banks or credit unions. Financing is more common for residential lots than large rural tracts.

How do I sell land fast in Michigan?

Sell to a cash buyer or investor group. They can close in 2–3 weeks because they do not rely on bank loans. You trade speed for a lower price.

Ready to Sell Your Property?

777 Brickell Ave, Suite 500-99620, Miami, FL 33131

Connect with Us Today!

Can I sell land with problems?

Yes. Common issues are wetlands, easements, flood zones, or zoning limits. Disclose problems early and price accordingly.

How do I avoid scams when selling?

  • Always close with a title company or real estate attorney
  • Ask for proof of funds
  • Do not sign the deed until money is secured by the title company
  • Be careful with buyers who push you to skip legal steps

What makes land attractive to buyers?

  • Mowed and clean property
  • Visible road or driveway access
  • Clear documents like survey, zoning, and tax status
  • Good photos and drone video

See MSU Extension land use and planning resources.

What mistakes do sellers make?

  • Asking too much money
  • Leaving land messy
  • Poor photos or no online listing
  • Ignoring taxes or liens
  • Slow replies to buyers

FAQ’s

Can I sell land with unpaid taxes?

Yes. Taxes are paid from sale proceeds at closing. See property tax resources.

Who pays closing costs?

Usually split between buyer and seller. Terms can be negotiated.

Do utilities matter?

Not required. Parcels with water or power often sell faster.

Can I sell land for $1?

Yes, usually for family or estate planning. See IRS guidance on gifts.

Final takeaway

  • Price fairly
  • Prepare the land
  • Gather key documents
  • Choose the method that fits your goals

This approach helps you sell faster, avoid problems, and get the best outcome.