Tips for Buying Land

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Buying land in the United States can be a real solid investment. It can also be a dream come true for anyone who simply wants to own land as part of the pursuit of the American Dream. Or maybe the buyer is thinking ahead and would like a home for his or her years in retirement. Instead of buying property, which must be maintained and in turn costs money, buying land would be more practical. This way the buyer can just sit on the land until he or she is ready to build a new property.

Whatever the reason is, there are some things every potential buyer should keep in mind when purchasing land.

Judging the Land

The land must be observed at all hours of the day and under the duress of different weather elements. Potential buyers should visit the land during a rain storm in order to see how the land is affected. Is there flooding? If there is property on the land, does the water affect the foundation? Are there leaks? These all affect the value of the property or of the land.

The potential buyer should visit the land during the week as well as the weekend to see if there are changes in traffic patterns around the area. Potential buyers should also visit during the night. Is the land disturbed by harsh street lights? Are there loud noises or heavy traffic nearby the land? These are all important factors that should affect the value of the land to the buyer.

If a potential buyer neglects to follow this advice, then he or she should at the very least include a 60-day study contingency in which the results must be acceptable to the buyer in the contract.

Ensuring the Value of the Land

The sellers are required to disclose anything that is wrong with the land or the property on it. Land that is further away from a road should be priced lower. If the nearest roads are in disrepair, the land is worth less. Land that is further away from a town or a city is worth less. If another person’s land eases into the seller’s land, then it is worth less. The potential buyer should use factors such as these in an attempt to lower the price of the land.

Negotiating the Price

The potential buyer should submit an offer at the low time of the season. This could result in the possibility that the owners may not have received any offers for a period of time, and may be more willing to meet the offer. Negotiations should be held directly with the owner of the land and not his or her real estate agent. The potential buyer should never reveal his or her finances or the highest price that he or she is willing to pay. Nor should the potential buyer convey his or her enthusiasm over the land. This will give the seller the idea that he or she can raise the price.

The potential buyer should look over the standard broker contract with his or her lawyer and make any necessary changes. When the potential buyer presents the contract to the seller, the lawyer should be present in case any last minute changes need to be made.

Financing

There are often high down payments required by lenders as well as higher loan rates when it comes to financing land. Lenders often fear being stuck with bare land if it becomes foreclosed in the future. Potential buyers may be better off either paying for the land outright in cash or taking out a second mortgage on their primary residence in order to finance the purchase.

These are just some of the things that a potential buyer should be aware of when looking into purchasing land. Purchasing land can be a great investment or a rewarding purchase if it is done carefully and correctly.

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