Owning land can be one of the most rewarding and one of the smartest investments you can make. Yet, when most people first decide to purchase land, they may have no idea where or how to get started. We have outlined the 7 basic steps on how to successfully find your property.
1. Decide to buy
If you have not made the decision to purchase land, then it is time to start talking about it. Land is unlike any other purchase you will ever make. They are not making any more, a new model is not in production, and the price will only continue to appreciate. That is why it is important to have the decision to purchase made before you look at specific properties.
2. Plan your purchase
Do your homework and you will be more prepared. Consider what you would like to use the land for: recreation, investment, or a residence. Pick out an agent and make sure that they listen to your wants and needs. It helps to find a specialist in the type of property you are looking for. Don’t be afraid to ask them what they specialize in.
3. Set a budget
Review your finances to gain a better understanding of what you can afford. We work with many lenders, who understand the type of property we work with, and can be invaluable in putting together a loan that fits your needs. Also, being pre-qualified and knowing your investment range gives you confidence in the process should you find the property you fall in love with.
4. Find your land
Looking for land can be a very time consuming task. Make sure your agent takes the time to listen, and gain a true understanding of what your goals are, reducing the amount of time and energy you will need to invest in this process. If an agent shows you more than 4 properties without getting close to what you want, something is not right. Most of our successful customers look at 3 parcels or less before purchasing.
5. How to make a reasonable offer
Remember, the piece of land you find was not manufactured in a factory. They are not making any more. Each parcel of land is unique. When you find the parcel you want, make a reasonable offer. The three major parts of the offer are purchase price, earnest money, and closing date. Sellers normally feel that the price that they have listed their property for is a fair market price. If you plan on getting a discount you should be prepared to entice the seller with a higher than requested amount of earnest money or a quick closing date.
6. Complete the transaction
Once you have had confirmation in writing that your offer has been accepted, the property has been taken off the market, the survey or valuation has been carried out, your financing is in order, then everything is set. Get ready for a lifetime of enjoyment!
Enjoy your new purchase