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.
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.
You also need to confirm that each of your planned lots will be properly serviced. Most homeowners expect to face a public road (with adequate frontage) and have water, sewer, power and other utilities available. So be sure to confirm both that typical utilities are available for your lots and that they will have the capacity to handle the load from any new homes that would be built on the subdivided lots. Do your research and have your surveyor locate water, sewer, gas, electricity and other utility lines and infrastructure on your plan.
Use a title company if you are not familiar with deeds, deed conveyance and closing of real estate. I prefer First American Title and you can find them anywhere. They will handle the monies, title search, title policy, deed, recording of the deed and pro-rated taxes, etc. Fees will vary and you can certainly negotiate. Typically the seller pays for the title policy and the buyer pays for half of the escrow fees. You can always charge an extra recording fee to offset these expenses.
"I've seen both buyers and sellers do this to try and gain some type of advantage in negotiations," says Robert King, a land agent with AlaLandCo; a native of Clay County, Alabama, he has over 10 years experience in marketing and selling property. "It rarely, if ever, works, and absolutely serves to drive the parties further apart." Also, don’t make a laundry list of everything that is wrong with a property you are trying to buy, cautions King. "You must like the property, or you would not have spent all that time figuring out everything that is wrong with it. That just puts the seller on guard and creates a personal barrier." When you impart your wealth of knowledge of all of the property's shortcomings to the other party, you are not likely to make a friend of the seller, says King. You want to be on friendly not adversarial terms with anyone you are negotiating with for the land deal.
The way that we found it was by checking our local county tax assessor site and seeing that it was vacant and owned by a gentleman who lives out of state. It wasn’t on the market, but I asked our realtor to contact him and low and behold he is willing to sell (it was inherited). As soon as we were ready to make an offer, he stated that he wants to go forward with an independent appraisal to see what the value is since he does not live in the area, which I understand (he is also a realtor in CA).
If the neighbor isn’t interested, the next best option is to go to your buyer’s list. “What I like to do every single day,” said Mark, “is [to] do something to create some value or educate people on the benefits of owning raw land.” Then, he will end the content with a call-to-action. Two example of calls-to-action would be, “If you want to learn more, just opt-in here” or “Get $250 off your first land purchase.”
Great Job John Cooper! I recommend that you do your research, talk with your accountant and if it’s the right process for you this is a great company to work with. You will help each other in the process to make it happen. When all the work is finished the funds are immediate! John Cooper was the Loan Acquisition Officer I worked with and I certainly would again. Perfect!read more
Here are reasons why I believe an Exclusive Listing Agreement is better for the seller when it comes to selling land. (Let me preface all of these reasons with the assumption that you have researched prospective listing agents with experience in selling land and you are only going to deal with ones that appear to be qualified and have good reviews. For more explanation read, “Not All Agents are Competent About Land.”
I am currently listing a 10 acre piece of vacant land, which is zoned R-1, in Hesperia, California. The seller states the property can be zoned commercial. I spoke to the planning department and they stated it is zoned residential. My client is totally convinced they are wrong and it can be switched if someone pitches a commercial rezoning presentation. What is your take on this?
Thanks so much for this article! I’ve run into a unique situation, where we found an amazing historic house that we’d like to restore, but it is currently listed as a vacant lot for sell with a shell house on it, rather than the house itself being listed. We know it’s not in a flood plain, the deed is unrestricted, and the home appears to have been lived in within the last 30 years so there is electric, heating, and plumbing. Any suggestions on potential issues we should be asking about before we jump in? We’ve never looked at land before, so we’re a bit overwhelmed by how much more complicated it appears to be vs buying a house.