If you dream about owning land in the US or planning for real estate investment in lands, you are at the right place. Real estate investments are steadily increasing, and it is surely the best time to invest in the land, especially the undeveloped cheap land.
Today, we will discuss all the alternatives such as land sites, real estate sites, private sellers, wholesalers, and real estate agents. These individuals can help you in buying land and may share with you a road map to get the best land for you.
Land Websites are clearly the most fundamental and practical option to buy land. You can make some research and easily find websites that offer lands of all costs.
However, there are certain aspects of sites that you should notice while purchasing lands such as the quality of the website and reviews. Also, make sure that their inventory is genuine and has a focus on quality rather quantity.
Furthermore, always remember that the costs of land can fluctuate according to down payments, interest rates, closing costs for recording, and other things.
If you are interested in real estate, you must be familiar with some big real estate sites such as Zillow.com, Trulia.com, RedFin.com, AuctionFlippers.com and Realtor.com. These websites have listings for land for sale throughout the country and can easily help you find vacant land listings.
The best part is you can set a price range within your budget, focus on your preferred area, and get the results tailored according to your inputs. Also, this is a good way to know the price of land in your area.
However, these websites often have a mix of real estate companies and include properties for sale by different owners and other land websites. So, it might be difficult to find out who is actually selling the land.
The descriptions on these sites can be limited, and you may have to go through an exhaustive contact process to find out if the listing was right or wrong. In short, these sites are really good for finding prices but demand research for actually buying the land.
Private sellers aren’t necessarily random landowners selling their own land. They are private dealers who sell lands for a living or as a side gig.
These kinds of sellers usually utilize websites where they often pay a sum to list their property. Many times, they run the whole business themselves. If you contact them, you can find some genuine property listings, too.
Wholesalers are the sellers who buy big size plots for a discount and then sell them one by one. If you are looking for land, chances are you have already run into wholesalers on sites such as eBay or auctionflippers.com.
Buying land via wholesalers can be a diverse experience and you may or may not find the right land. Many times, you can encounter wholesalers on auction websites and buy land after developing a relationship with them. However, some of the wholesalers sell land only to investors and tend to attend and buy on county tax sales.
The last and most common way of buying land is through real estate agents. People usually sell their lands by representing the property by an agent. Thus, these agents have access to every listing on the market properties along with properties not listed. These professionals have a strong network of land developers and contractors and can easily avail you of good land.
If you come across a deal that looks fair and pretty much reasonable, it is time to examine the land. Many times, you can get something you didn’t pay for and have to bear unwanted problems in the future, especially if the land looks exceptionally cheap. So, here are a few things that you must consider before investing in the land.
You must check if a municipal water supply is available on the property or you have to install a well or any other water system. Next, check sewer connections, septic tanks, electricity facilities, and internet access in the area.
If there is no public or private road access to your selected land, you might have to develop one by yourself and this can cost you lots of money. It will also involve hiring an excavation contractor, an arborist, or a logging company. Hence, it is essential that you check if the land has proper road access or not.
Getting a loan for vacant land is quite more difficult than developed properties. Most lenders view these lands as riskier investments, and you have to be smart enough to get your financing for these lands.
However, you can get your financing done via several methods such as construction-to-permanent (CP) loan, Lot loan, Owner Financing. Or if you have cash, you can go for the no-financing option and pay in cash.
Submit an Offer for a Land
Once you find the property worth the effort and money, you have to submit a formal offer letter to the seller. You can get this done by your real estate agents or you can consult a real estate attorney to advise you on contractual terms and drafting the important documents.
A real estate agent or attorney will also advise you about the contingencies to be met before finalizing the deal.
The last step before finalizing the deal is going for a comprehensive inspection. Here are a few things you should check before making the deal:
- Request documents from the seller to check for any covenants, conditions, and restrictions on the property.
- Run a title search to examine the history of public records such as deeds, taxes, and other financial transactions.
- Check zoning to know what the land can be used for and if it fits your purpose or not.
- Perform a soil test to determine the rate of water drainage and soil quality.
Once all these inspections are done and your offer letter is accepted by the seller, you can sign the deal and the land will be yours.