These are some of the best ways you can find land to sell:
Real Estate Websites
According to Atmos Builders head of operations Trent Hedge, most people start the land search by perusing online real estate databases. Websites such as Zillow.com or Trulia.com offer land for sale across the country. Some databases are specialized in listings for vacant land.
For MLS listings, the contact will typically be a real agent representing the seller (also known to as a seller’s agent). Seller’s agents are ethically and financially obligated to represent the seller’s interests. It is often recommended that you hire your own agent (a buyer’s agent) in order to represent your interests.
Real Estate Agents
Agents can be a valuable resource in finding land. They have access to every listing on the MLS (“on market” properties), along with properties not listed on the MLS (“off-market” properties) through their network of industry professionals like land developers and contractors.
Although most agents can help land buyers, only the best agents will be able to sell land. Christopher McGuire is a real estate broker, investor, and co-founder of Real Estate Exam Ninja. He recommends that you work with “…agents who have a long history of selling land or have experience in soil science or geology.
McGuire recommends that you use agents who have the Accredited Land Consultant Designation (ALC) through the Realtors Land Institute. These agents are trained to guide you through the necessary due diligence steps and legal procedures pertaining to land purchases.
You can find FSBO properties in classified ads in local newspapers and online directories such as Craiglist or Facebook Marketplace. EasySellFL.com founder and CEO Greg Bond also recommend contacting landowners directly. Bond says that he has mailed neighborhoods with affordable, buildable lots to find many times that the owners were happy to part with their land at a substantial discount.
Bond recommends finding contact information for landowners on the Geographic Information Systems map (GIS), which can be found at the County Assessor’s Office’s website. Bond recommends that you check county tax deed auctions where land is sold at a significant discount when the owner has not paid property taxes.
There are many factors to consider when searching for land
These factors will determine whether or not a piece is suitable for your needs. They also influence the cost and difficulty of developing it. These are some of the things to keep in mind as you look for land.
Water. If you are looking for a municipal water supply if a well is not available, you might have to install one. Off-grid water system. Another option is to truck in water, which can prove costly and cumbersome.
Sewer. If there is no municipal sewer connection, you can get one from the city. Septic tank before any construction can begin, it will be necessary to have the required installation.
Electricity. If there isn’t one, the local utility company will have to run one. Building the site you can also install a. You can also install a Solar-generated system.
Internet service. Examine whether your cellular coverage is adequate and what you can do to improve it. Internet connection you can also find them on the property. It is possible that you will need to change. Cellular service providers, or run a fiberoptic internet cable from the building site.
Some remote house builds lack road access. You may have to build a road to your property if there isn’t a public or private route. This can be costly. This will require hiring an excavation contractor and perhaps an arborist or log company to remove trees. McGuire says you may need to apply for a right-of-way easement to gain user rights to neighboring properties if the lot is landlocked by adjoining parcels.
Financing Options Available for Land
Obtaining financing for vacant land is often trickier than developed properties.
Premier Property Buyers owner Eric Nerhood says that most lenders view undeveloped land as a riskier investment, and are more likely to offer to finance when you have immediate plans to build a home. If that is the case, expect to pay between 15 and 25 percent for a downpayment, or as much as 50 percent if you don’t have plans to build.
These are some financing options to help you finance a land purchase
Construction-to-permanent (CP) loan. Also known as a “combined” construction loan CP loan is a way for the buyer to simultaneously finance their land purchase and home construction. This is the most popular financing option, as it requires a lower down payment and has a higher interest rate. Lower interest rates most lenders offer this loan. Usually, before applying for a CP Loan, you will need to. Hire a licensed contractor have building plans drawn. The lender may limit the time that you have to wait before you start construction.
Loan for lots Lot loans can be used to finance land purchases without the need to immediately plan to build. Hedge says that lot loans aren’t offered by many lenders because they are considered riskier than construction loans. Lot loans require higher down payments and have higher interest rates.
Owner financing Some FSBO properties may allow the seller to finance the purchase. Although the down payment required will vary depending on the seller, they are usually lower than conventional financing. However, interest rates are often higher.
There is also the option to pay cash and avoid financing. This also makes it easier to obtain construction financing when you do build, Hedge says, because the equity you have in the land can act as your down payment.
Send an offer
After you find a desirable property, you need to submit a written offer to the seller. If you’re working with a real estate agent, they will handle drafting and submitting the necessary paperwork, including a Bid Offer form. McGuire suggests that you consult with a real estate lawyer to help you establish contractual terms and draft the documents.
A lawyer or agent can advise you on the conditions (contingencies), that must be fulfilled before the sale can proceed. A contingency is a condition that stipulates the time frame within which due diligence must be completed. Commonly, the time period is between 30 and 90 calendar days.
Performing a comprehensive inspection of a property is necessary for ensuring the land is suitable for your specific needs. Hedge and Bond recommend the following:
Ask for documents from the seller Request documents regarding any covenants conditions or restrictions (CC&Rs), on the property. The CC&Rs are a set of rules that govern what you can do on the property. They are usually imposed by. Associations for Homeowners(HOAs). Specific CC&Rs may vary. These CC&Rs may limit your ability to grow chickens or other livestock in your yard, as well as your house type and size.
Run a title search. History of public records, such as tax records or deeds, will be analyzed. A title search basically verifies that the seller is able to legally transfer the property without any problems. A title search may uncover liens or easements, which allow third parties to use the land.
Check to zone. A parcel zoning designation land’s use and type of structure can be determined by the Zoning and Planning Office. You should check with your local Zoning and Planning Office. If the property has been designated commercial, you might not be allowed to build a primary residence. Bond said that he sees many people purchasing land only to find out that they can’t build the home they want due to restrictions on zoning.