Top Land Buyers in South Dakota

How long does it typically take to sell vacant land in South Dakota?

In the 2025 South Dakota market, the timeline to sell vacant land typically ranges from 6 to 12 months for traditional listings. While residential "infill" lots in growing hubs like Sioux Falls or Rapid City can move in 90 to 180 days, large agricultural or recreational tracts in the central and western parts of the state often require a year or more to secure the right buyer. The timeline is primarily influenced by the due diligence period, which usually spans 30 to 60 days as buyers verify mineral rights, access easements, and soil suitability for septic systems in rural areas. Sellers working with direct cash buyers can often bypass the marketing phase and close in as little as 14 to 30 days.

What are the common closing costs for land sellers in South Dakota?

South Dakota is a title and escrow state, though it is common to use a real estate attorney for complex transactions involving agricultural partitions or mineral rights, with 2025 rates averaging $248 per hour. Sellers can expect total closing costs to range from 6% to 10% of the sale price. Unlike some states with high transfer taxes, South Dakota's fees are relatively modest, though property tax proration can be a significant line item due to the state's specific assessment cycle.

Specific costs for 2025 include:

• Real Estate Transfer Fee: The state rate is $1.00 for every $1,000 (0.10%) of the purchase price. For a $250,000 land sale, the seller pays $250.
• Title Insurance: Sellers customarily pay for the Owner’s Title Policy, which averages between $600 and $1,200 depending on the parcel value.
• Recording Fees: Generally a flat fee of approximately $50 to $75 at the county register of deeds.
• Escrow/Closing Fees: Typically range from $350 to $600, often split between the buyer and seller.
• Prorated Property Taxes: Calculated based on the average 1.01% property tax rate, adjusted to the exact date of transfer.

Do I need a survey to sell my land in South Dakota?

While South Dakota law does not strictly mandate a new survey for every property transfer, it is a practical necessity for almost all 2025 transactions to satisfy title insurance and lender requirements. Most title companies will not remove "survey exceptions" from a policy without a Boundary Survey or a Plat of Survey. In rural South Dakota, many legal descriptions are still based on original government surveys from the Dakota Territory era; a modern survey ensures that old fence lines or "section corner" markers match the legal deed. In 2025, a basic survey for a standard lot costs $500 to $900, while large-scale agricultural acreage or Wind Energy tracts can exceed $3,500.

How is the land market trending in South Dakota for the next 12 months?

The South Dakota land market is forecast for stability with modest growth (0% to 3%) through 2026. While the rapid double-digit growth seen between 2021 and 2024 has slowed, land values remain resilient due to critically low inventory. A major trend for 2026 is the potential Constitutional Amendment to repeal real property taxes, which—if passed—could significantly shift the economics of long-term land holding. Currently, cropland values average around $6,189 per acre, showing a slight cooling in growth as high interest rates and lower commodity prices temper demand from local operators.

Can I sell land in South Dakota if I have back taxes or title issues?

Yes, but you must act before the 60-day redemption window following a tax deed notice. In South Dakota, if property taxes remain unpaid for three years, the county can initiate tax deed proceedings. Once the county treasurer files an affidavit of service for the tax deed notice, the owner has exactly 60 days to redeem the property by paying all delinquent taxes, penalties, and interest. After 60 days, the certificate holder (usually the county) can take full title.

For inherited land, South Dakota probate law allows for a "Power of Sale": if the decedent’s will explicitly grants the executor this power, the land can be sold without a specific court order, potentially saving 4 to 6 months of delays. This is a vital tool for families clearing title for Renewable Energy or Industrial Infill projects that require fast acquisition timelines.

What is the most in-demand type of land in South Dakota right now?

The highest demand in the 2025 South Dakota market is for Renewable Energy Infill (Wind and Solar) and Residential Development Land. Driven by the state's massive wind resources, developers are aggressively seeking large tracts in central and western counties for dual-use grazing and energy production. Additionally, Industrial Logistics Infill near the I-29 and I-90 interchange remains a top-tier asset class. In the residential sector, "ready-to-build" infill lots in secondary metros like Brandon and Spearfish are the top choice for builders seeking to bypass the infrastructure delays of raw land development while meeting the state's housing demand.