You have saved a big amount of money in your savings account. It is now time to get down and buy a piece of land in cash.
The starting point sometimes can be so overwhelming and it might get tougher when due diligence is required to successfully close the land deal.
There so many benefits of cash purchase as you won’t be beholden to a loan and its interest from your financial institution.
Although there is no blueprint to follow in making cash purchases for land, we have compiled some proven steps that industry experts recommend.
1. Consolidate all the cash
The first step is perhaps consolidating all your funds into one account. If you have in the stock market or forex market, it is advisable that you withdraw and have them in the most liquid form which is cash.
Perhaps you will need to consider talking with a financial analyst to advise you on the tax implications of withdrawing such funds from those accounts.
Having all your cash in one bank account makes the closing of the deal smooth.
2. Obtain proofs of funds from the financial Institutions
What you need to have next is a bank statement or in some cases have a letter from the bank indicating that you can afford to pay up to a certain amount.
This letter is often sent out together with the letter of offer.
3. Find your land
The fun part of “window shopping” for land begins. You can utilize referrals from your friends, or use real estate companies that do listing of plots for sale.
“Location, location, location is key in real estate. You locate land in a place where there is developed infrastructure or where development in the area is fast-growing, is a sure bet on land appreciation in value,” Says Reuben Kimani, CEO username Investment limited.
You can work directly with a real estate company that has developed the land property. This is by far the easiest and safest way to buy land with cash.
4. Find the offer
Once you identify the land you are interested in, you are supposed to send an offer letter with a bank statement or bank letter.
You are supposed to send earnest money to show the seriousness of your offer.
5. Choose settlement agent
Even though this is a cash purchase, it is important to have a settlement agent who will be their fiduciary agent over the transaction process.
In some scenarios, the settlement agent act as an intermediary between the land seller and land buyer.
A settlement agent can be your attorney as they understand the land clause and contractual clauses better.
6. Do the site visit
Now you are now almost getting things done. You are supposed to organize a day to tour the land in person so that you can know how your land will be looking like on the ground.
During the site visit, you can have a list of questions to ask the seller that you think is important.
7. Take part in a title search
A title search is a very important step when buying a piece of land. You participate in doing the title search as it will tell you who the exact owner of the land, easements on the land, and if there are any liens on the land.
8. Consider a land survey
You have verified the rightful owner of the land, the next thing you need to do is consult a land surveyor to ascertain the size of the land and mark the boundaries properly.
Some parts of the land couldn’t be usable because of easements that exist on the property. For instance, the land you want to pay could be 40 acres, but because of the public right use of ways, you can have 39.5 acres being actually size that you can use.
9. Secure check for payment
In the land purchase or any property that involves a large amount of money, a cashier’s check is only used. Neither do personal checks is accepted nor cash accepted.
So when ready to purchase, you will need to do an arrangement with your bank to ensure that the money is in the accepted check.
Now everything is ready, you are now ready to complete the payment. You will need an identification card and other documents that your settlement agent will ask you to come with.
10. Do title deed transfer
Once you have made full payment, you will need to start the processing of the title deed transfer. This will be the final step in your land acquisition process.
11. Come to the closing
Finally, you are now Landowner! Did you want to use the land to build your home or for your family? You can go ahead and start doing whatever use you intend to use. You are free from a loan!
Selling land can be a lucrative venture, but it’s not always as straightforward as it may seem. To sell your land quickly and directly to eager buyers via: Sellland.com, you’ll need to employ some savvy strategies and tactics. Whether you’re a seasoned landowner or a first-time seller, this guide will provide you with valuable tips to streamline the process and maximize your chances of a successful sale.
1. Know Your Land Inside and Out
Before you even think about selling, take the time to thoroughly understand your property. Gather all relevant documents, such as surveys, property boundaries, and zoning information. This knowledge will not only help you accurately describe your land to potential buyers but also avoid any surprises during negotiations.
2. Set a Competitive Price
One of the most critical factors in selling land quickly is pricing it right. Conduct market research to determine the current value of similar properties in your area. While it’s tempting to aim for the highest price possible, an inflated price tag can drive away potential buyers. Be realistic and competitive with your pricing to attract serious offers.
3. Showcase Your Land’s Potential
To capture the attention of eager buyers, highlight your land’s unique features and potential uses. Consider investing in professional photography or aerial drone shots to showcase the beauty and possibilities of your property. Emphasize any existing infrastructure, like utilities or roads, that can make the land more appealing.
4. Use Multiple Marketing Channels
Don’t rely on a single platform to market your land. Utilize a variety of marketing channels to reach a broader audience. This may include listing your property on real estate websites, social media platforms, local newspapers, and even community bulletin boards. The more exposure your land gets, the faster you’re likely to find interested buyers.
5. Engage with a Real Estate Agent
Real estate agents have a vast network of potential buyers and can help streamline the selling process. While they typically charge a commission, their expertise can save you time and effort. Choose an agent with experience in selling land, as it can be quite different from selling residential properties.
6. Offer Financing Options
To attract more buyers, consider offering financing options. This could include seller financing, where you act as the lender and allow buyers to make regular payments over time. Providing flexible financing terms can make your land more accessible to a broader range of buyers.
7. Highlight the Investment Potential
Many buyers are interested in land as an investment. Explain the long-term value of your property, potential for development, and any projected appreciation in its value. Providing this information can help potential buyers see the financial benefits of investing in your land.
8. Be Transparent and Accessible
Build trust with potential buyers by being transparent about your land’s condition and any restrictions. Respond promptly to inquiries and make yourself accessible for property visits. Transparency and open communication can go a long way in closing deals quickly.
9. Consider Parceling the Land
If your land is extensive, consider subdividing it into smaller parcels. Smaller parcels can be more attractive to buyers who may not need or want a large tract of land. Additionally, parceling allows you to diversify your buyer pool, potentially speeding up the sale process.
10. Pre-Qualify Buyers
To avoid wasting time with non-serious buyers, pre-qualify them before negotiations begin. Ask potential buyers about their intentions, financing capabilities, and timelines. This step can help you focus your efforts on those who are genuinely interested and capable of closing the deal.
11. Be Flexible with Negotiations
When it comes to negotiating, flexibility is key. Understand that buyers may have specific requirements or requests, and try to accommodate them when possible. Being flexible can help expedite the negotiation process and lead to a faster sale.
12. Prepare a Comprehensive Sales Agreement
Once you’ve found a willing buyer, draft a clear and comprehensive sales agreement. Include all necessary details, such as the purchase price, payment terms, and any contingencies. Having a well-prepared agreement can prevent delays and disputes down the road.
13. Conduct Due Diligence
During the closing process, both parties will need to conduct due diligence. Ensure you provide all requested information promptly and cooperate with the buyer’s inspections and inquiries. A smooth due diligence process can lead to a quicker closing.
14. Consider a 1031 Exchange
For sellers looking to reinvest in real estate, a 1031 exchange can be a powerful tool. This allows you to defer capital gains taxes by reinvesting the proceeds from your land sale into a like-kind property. Consult with a tax professional to see if this option is suitable for your situation.
15. Stay Informed About Local Regulations
Local zoning and land use regulations can significantly impact the sale of your land. Stay informed about any changes in local laws and regulations that may affect your property’s potential use. This knowledge can help you market your land more effectively.
Both buying and selling land quickly requires careful planning, effective research, and a willingness to adapt to changing circumstances. By following these tips and staying proactive throughout the process, you can increase your chances of a securing either your land purchase or landing a successful sale.