Hi Giselle – all of the properties I’ve bought have been SUPER cheap, so I’ve always just paid with cash. I have done plenty of seller financing when I’ve sold properties, but not so much when I’m buying. However, what you’re saying could certainly be a feasible way to get properties without taking out a hard money loan – you’d just have to find a seller who is willing to work with this kind of arrangement and then hold their hand to make sure they understand the process and that everything is being done correctly (paperwork, recording, processing of payments). There are a lot of additional moving pieces when seller financing enters the picture, but for the right deal, it could absolutely be worth all extra effort.
The properties next door can have some MAJOR implications for the value and “sale-ability” of a parcel of land (e.g. – Think about it, would you rather live next to Yosemite National Park or a Landfill?). For understandable reasons, most people care a great deal about who and what they live next to, so be sure to get a good idea for what the surrounding properties look like (hint: this is another potential area where a service like WeGoLook can help).
Two things I liked about this site was the fact that users are able to include YouTube videos with each listing AND link to outside websites (something I wish all listing websites would allow). Another unique feature is that FindMyRoof also allows visitors to click the “Flyer” button on each listing and generate a nice, printable version of each ad.
I might add that in some development-friendly communities, the city and developer might try to play the eminent domain (condemnation) card. Ostensibly, eminent domain should be used only in the exercise of public good such as a new highway or road widening, though some cities get away with it in dubious circumstances. Your agent should know whether this could be an issue. Such a scenario, as unlikely as it is, would probably force you to hire a lawyer to get a decent price.
Get your title sorted. This may seem obvious, but title issues will deter developers and delay sales. Unregistered land, missing documents, restrictive covenants, boundary problems, lack of easements, or rights of access or rights of way- these can all be resolved but it is better to address the issue early and ensure the title is good and marketable. Does your land have direct access to the adopted highway? This is one of the key things developers look for.
If youre providing seller financing, youll still need to draft a deed, but this deed will be held in escrow until the final payment is made. Once that payment is made, the deed will be filed with its respective government agency, typically the county clerk. You can have an attorney, title agency, or a financial institution hold the median in escrow for you until the buyer makes the final payment.
I am looking at a property in Spanish Fort, Alabama. The neighborhood development began prior to the 2008 crash and sat for years. A house has started being built on a lot in 2013. A crack formed in the foundation of the house, and a stop work was ordered by the city. At this point my thought was to buy the property, scrap the house (its still sitting in the beginning stages after 3 years) and start over. The property now has made a mess in the neighbors yard for a over two years. 1) can the run off problem be fixed (its a huge mess) 2) how can a person get copies of photos (topography) of the property before the development started by the builders? These copies would have been from around 2006. I heard seeing the natural lay of the land could be very important when deciding if this run off problem is fixable. Thanks you for any help you can offer. I am just fearful of purchasing a huge nightmare that can’t be fixed.
Additionally, the land contract should indicate how many payments will be made, their due dates, grace periods (if applicable), fees for late payments, and how the buyer should deliver each payment. Under a land contract, buyers are usually treated just like a property owner, and will be responsible for paying property taxes, insurance, and any utility bills associated with the land use.
Great article. I’m having trouble finding information, as most of it is about buying and constructing right away. I’m looking for information on how to buy a rural piece of land 2-10 acres where I can camp on it for a couple of seasons to get the best site to build a little summer/fall shack to get away on the weekends. So I won’t be building right away, just ‘squatting’ on my own land for surveying purposes, see where the hottest/sunniest spots might be, etc. Do you have any advice on what regulations/restrictions I might come across? Is this a “depends on” on kind of thing, meaning, different counties/townships all might have different rules? Thanks again.
Hi Prakash, the best way out to sell your property is to advertise your property through different media including online property portals like 99acres.com since online media is faster and quicker. You can also go for offline media options like magazines and newspaper in which you can easily give your advertisements in the classified sections and specific real estate supplements. Apart from this, you may also purchase a paid package service provided by various online portals in which they will charge you on a monthly basis and in return they will give prominence to your ad over non-paid ads. For paid package services, you may refer to 99acres.com and choose option buy our services: http://www.99acres.com/do/buyourservices
I have an opportunity to buy 53 acres of recreational land. 9 of the acres is a pond and another 16 acres is CRP land. I was thinking about sub dividing these lots for a private campground. I currently own a single lot in a private campground about 70 acres and most lots are .18 ac that sells for $4000 each. I am looking to do the same as the owner did years ago, but with possibly my own piece of land. Without tipping off the owner on this opportunity, land for sale, what problems may I encounter, or unforseen costs will I run into?
There is swampy/nonbuildable property next to me that is landlocked by 5 residential properties. We are interested in purchasing it – yes, we want landlocked swampland. We spoke to the owner who said he wants to sell it at whatever the going rate is for vacant land. Prior to offering him a very lowball offer, we’d like to gather resources that show the property’s true “potential” so that we don’t offend him. Other than a printout of a map, is there something more official we can acquire that shows he is landlocked? Also, the tax record shows the property’s assessed tax value is 100k, which is definitely inaccurate. Is there a way to have that reassessed to reflect its true tax value? We heard through a neighbor that it is recorded as nonbuildable and he doesn’t have to pay taxes, but I have not been able to find anywhere to verifiy that. Thanks in advance for any advice you can offer!!!
This is a great article! I agree that there is a lot to take into consideration when investing in land. Most people fail to realize as well that investing in land is most time, if you find the right deal even better than buying properties already constructed on a piece of land. People also forget that there are many expenses involved in developing vacant land to be “usable”. All of the points made here are extremely important to consider and one should do extensive research before purchasing any property and ask yourself these 15 questions mentioned above before purchasing. I have done lots of research and have bought properties in the past, the best company/website in my opinion is http://www.cheaplands.com I have never seen deals like theirs in my real estate career.
In the very least, your land contract should include the address of the property and a full legal description of the land. It should also include the down payment amount, purchase price, the number of payments that will be made, the monthly payment amounts, and any balloon payments that may be required. You may also consider creating and attaching an amortization schedule.
Just wanted to thank you for the help you provide to everyone here.I live in Europe and would like to buy a 2 acre to retired on a mobile or prefab cabin on it ,using the land as a small homestead but would you buy when you are not even in the states?I would use golook to check the property but Im scared or doing such a move.I found a 1acre owner finance and Im tempted.
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“I visited the property on Sunday and most of the lot was inundated with water. It is apparent that the soil is saturated for significant periods. Based on my observations, which are consistent with the available online data, it is my opinion that the lot is unbuildable since it does not meet the minimum New York State Dept. of Health (NYSDOH) requirements for the design of an onsite septic system. NYSDOH requires at least 12 inches of native useable soil above the high groundwater level and the septic system cannot be situated in a wetland. While NYSDOH has many other requirements to comply with, these two deficiencies cannot be addressed by any approvable design.
Before getting started, check out a few sample ads for houses and you'll notice that they are emphasizing the benefits and amenities of the house. Don't sell the steak, sell the sizzle. Raw land is no different. Take a good look at what makes your land compelling. Mountain views? Water? Hunting? Recreational area? Good access? In the path of development? Trees? Then get out the thesaurus and use some colorful adjectives to describe the area and land. Of course, you will need a section for just the facts such as: elevation, access, terrain, deed conveyance, taxes, driving directions, GPS coordinates, sewer, water, utilities, mineral rights, etc. I like to use a simple table outlining all of the basic attributes and facts about the land. It is essential that the potential buyer have easy access to this basic information but it won't help sell the land. Your language and conviction about the area need to be conveyed to a potential buyer and that is what will sell the property. More information is always better than less. Once you have your content well laid out then you need to add images.
If you intend to hold onto a property for any length of time, beware of a super high tax bill relative to the actual value of the property itself. I haven't run across this issue very often, but for various reasons, there are some properties that have some ridiculously high taxes in proportion to the property’s actual value (for example, if a $10,000 property has an annual tax bill of $2,000, THIS IS TOO HIGH). In my experience, I've found that a reasonable annual tax bill usually falls in the range of 1% – 4% of the property’s full market value.
Settle on a price that is acceptable to both parties. But don’t exceed the price you initially set as your maximum amount to pay. No property is worth paying more than you can afford. "Decide what a transaction is worth to you. A property may be worth more in value to you than the actual appraisal. Take the emotion out of it and deal with it in terms of dollars and sense," confers King. And, "don't be afraid to walk away from a deal, just do so with a handshake and a smile and do not burn that bridge."
Always offer to ‘show’ the property to prospective buyers. It’s an obvious step for home sales, but some people neglect it for land sales because they believe there isn’t a lot to really show. That’s the difference between a strong seller and a poor one. To be a successful salesperson, you’re always selling. You want to show the buyer the property lines, and then, lead them out to see the neighborhood, local businesses and other aspects that could seal the deal.