How Land Buying Without a Realtor Works
Purchasing land without the help of a realtor can be a great way to save on commission. However, it’s essential to understand the process before you make an offer.
A local real estate agent who specializes in land can assist you in navigating issues such as property lines, environmental concerns, and building codes.
Do Your Research
Before buying land, you need to do your research. This includes checking the zoning laws to ensure you can build what you want and finding out if there are any environmental issues. If you require legal assistance during the real estate process, it may be beneficial to seek the help of a licensed real estate attorney.
Another essential thing to know is that purchasing land can be more complicated than buying a home. While homes typically close within 45-60 days, it can take longer for land to close. A real estate agent must work with the lender to ensure that financing and all the other details are in order.
Because of this, it’s a good idea to do your research before committing to buying land without an agent. This can include scouring online listings, searching the classified ads in newspapers, and driving around rural areas to find the perfect plot of land for you. You can visit this website to help you in your selling journey.
Make an Offer
You’ll need to make an offer when you find a property that meets your criteria. Your best bet is to work with an agent who specializes in land sales and has a good working relationship with the seller.
You can also buy land without an agent. However, be aware that the seller’s agent will take the commission that would have gone to your buyer’s agent. This is known as dual agency, which is illegal in some states.
Depending on the property, you might be asked to submit proof that you have the cash to purchase the land. Your financial institution can help you finalize this documentation. You should include a contingency in your offer stating that all inspections must be satisfactory to the buyer “at the buyer’s sole and absolute discretion.”
This gives you an easy way out of the contract if something unexpected is discovered or you change your mind. It is always better to be safe than sorry.
Going solo in your land search has advantages, including building a direct relationship with the seller. However, it can also present some risks when closing the deal. For example, the seller’s agent typically gets their commission in addition to the one you would’ve paid your buyer’s agent (known as dual agency).
To avoid a double dip in price, it is critical to have solid negotiation skills before making your first offer. This includes digging into the property’s highest potential use value and any zoning restrictions that may lower that value.
Additionally, it would be best if you were prepared to provide proof of funds before submitting your offer. Many sellers will want to see a letter from your bank showing that you have the financial capability to close on the property. Be prepared to negotiate the terms of this letter as well.
Whether you’re buying raw land or an existing home, there are a lot of things that have to be addressed. Zoning laws, water and sewer hookups, environmental regulations, building codes, and more exist. A real estate agent is skilled at navigating these issues and can help you avoid pitfalls.
The seller will ask you to sign a purchase agreement when you close. This document will contain a detailed property description and a commitment to purchase. You may want to hire an attorney to prepare the agreement and to confirm that the seller has a clear title.
You can even complete the process in a few weeks when you pay cash for the land. As part of your offer, your earnest money deposit will be placed into an escrow account until the deal is closed.