A famous man said to buy it because they don’t make it anymore. He was talking about land. Land may be purchased for constructing a home, held for investment, or other uses like raising trees. It can be a tiny lot in the city or many acres in the country.
I read a few books on my kindle reader to learn how to buy from a private person or go through a Real Estate Agent. I can see enough information on the local MLS (Multiple Listing Service) to find land. Plus, there are plenty of ads in the weekly ad paper and on the net from sellers acting on their own behalf.
There are many ways to craft an offer. For instance, the ‘reality check’ is the a check in the amount a seller would accept right now. Normally you would offer to pay all closing costs so you just want to know what amount that check has to say at closing. The ‘reality check’ is a great tool.
My car has everything from last month’s fast food wrappers to toddler baby bedding in it. It also has my books on land purchase and each one recommends working with a title insurance company. This is the disinterested third party that will report facts to both buyers and sellers.
The title company will provide a preliminary title report. They will report encumbrances, title liens, vested ownership and other details that help you. A messy title report cannot be cleaned up with a handful of baby bath towels and may leave you wanting a different property.
The title company or your Realtor can help you find out if the property will meet your needs. They can tell you that 20 acres can be split into five acre minimum parcels. They can also tell you that there is a zoning vote pending that will not allow it to be broken down further.
You should check into utilities starting with septic. Will the land support a conventional septic system? Alternative systems may be authorized but cost thousands of extra dollars. Find out where the electric is located and phone too.
Talk to all kinds of related professionals. Private lenders, Appraisers, real estate agents, and well drillers will share their knowledge with you. These are the folks that have as many answers as you questions. You may be on your way to your first or your latest land transaction. It feels good to look at those pictures of earth taken from space and be able to say, ‘Hey there’s my place’.
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Tags: buying property, land