I’ve heard that it’s very hard to sell land/property with a quitclaim deed, and buyers (whether investors or the open market in general) will only want warranty deeds. So without me having to spend $2000 or so doing a quiet title or using Tax Title Services to make the deed fully clean and marketable and insurable, could you go into some depth explaining how to quickly flip/wholesale land parcels that I’m offering and advertising with a quitclaim deed I got from the county? What do I need to know for this, and how do I structure it to make it attractive, and what steps are involved? Is this something that investors/rehabbers are fine with accepting (if the price is attractive?)
When you’re selling a home, you want to give buyers all the details about it, such as a list of all projects you’ve had completed and a list of all updates and maintenance work performed within the last decade. You also want to show off the most desirable areas of the home, such as the kitchen or recently renovated bathrooms. Buyers are looking for details on the community, such as nearby schools, the friendliness of the neighborhood and property tax information.
If the sellers feel as if they are doing all the work, they might also be able to modify the existing agreement and add a termination if the broker doesn't meet certain obligations, like selling the home within a certain time frame, says Sandy Straley, a real estate agent in Layton, UT. Other obligations for the listing could include organizing open houses, creating and distributing printed materials, and even the posting of videos shot by drones, says Markel.
In order to determine the right buyer for your land, look at the highest and best use to determine where to start placing ads. If it is country land that is perfect for hunting, look for local outdoor forums and clubs to advertise your land. If it is a good home site, a land broker or traditional real estate agent may be best. You can also contact the neighbors, who may be interested in extending their property.
Interested buyers will be in touch to view your home. You can decide whether to host a show day or appointment-only viewings. If you decide to host a show day, we will send out a show day notification to our database of buyers to promote it. We can also supply show day boards for the outside of your property. Appointment only viewings pose fewer security risks and are easier to manage but would mean that your home would need to be show ready at any time.
The first obligation of a vendor to the purchaser is to make sure they can provide clear title to the purchaser, in other words, ensure your property can be freed of any encumbrances or orders or conditions at settlement so that the purchaser has clear title to the property. Your lawyer or conveyancer can assist you with this but the obligation is on you so make sure these matters are worked out before you start signing contracts.
A closing statement should be prepared to show an accounting of the debits and credits to each the buyer and to the seller as part of the land contract transaction. An attorney or a title agency can prepare a closing statement for the parties. The closing statement may also contain an amortization schedule showing the projected payments to be made from buyer to seller to fulfill the financial obligation of the land contract.
Owners wishing to sell their property privately, will not only save thousands of dollars in commission fees you will also not be paying the sometimes extraordinarily high adverting rates that most traditional agents charge the owners upfront. For our very modest marketing fee to list your property privately through our online service you can save hundreds, if not thousands, of dollars on this outlay alone.
I had a question related to buying land lots from over the counter tax deeds (stuff people didn’t buy from tax deed auctions), which I know isn’t what you mainly focus on here going after owners BEFORE the tax auction (but I have nothing for a marketing budget now). As I understand it, if you buy land tax deeds over the counter, the county gives you a quitclaim deed. We are probably going to be getting quitclaim deeds anyway from many customers we buy land from as well, so I guess there is some relevance to this question.
Thinking of selling your land? Whether youre working with a real estate agent or selling your property on your own, there are certain documents that youll need in order to close the deal. While requirements may vary depending on your state, there are a few general documents that youll need in order to legally transfer your property to the buyer.
Depending on the state in which the property subject to the land contract sale exists, the buyer will want to file additional forms to gain the benefits of being the property owner, even though technically, the buyer does not have a true legal title to the property until full payment of the purchase price is made. Such forms may be a property transfer affidavit, which you may be required to file with the city assessor’s office for tax purposes, or a principle residence exemption, which gives the buyer a tax break for using the property as the buyer’s principle residence.
Conducting a self-closed real estate transaction isn't appropriate for all people and situations. The process DOES require some significant attention to detail and organizational skills. Some people are very good at staying organized and keeping track of these details, and others aren't. Don't try to close your own deals unless you're willing to go slow and get the help you need to ensure you're completing each step in accordance with the laws and regulations of your state.
The land contract is its own legal agreement or contract, with all the terms and conditions agreed to between the buyer and seller. At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required. Attaching an amortization schedule to show the exact payoff schedule of applying the monthly payments to the total purchase price is helpful.
I have this document available for members of the REtipster Club to download for free, but it’s not something you can get here on the blog (because it’s pretty specific to land transactions, and I wouldn’t want people trying to use it for selling houses or other types of real estate, because it’s not really intended for that). Does that make sense?
There are times when it is absolutely worth the money to hire a professional closing agent (I usually do it when I'm paying more than $5,000 for a property and/or if the property's fair market value exceeds $10,000), but when you're buying a property for pennies on the dollar, there are a lot of cases where you can easily close the deal yourself and get by without this added cost.
While a land transaction is different in many ways from a real estate transaction in which improved property changes hands, it's still a real estate transaction. Land sales still involve escrows and title insurance and are still subject to transfer taxes. As with any other transaction, there are customs for who pays which expense at a closing, but the customs are also set aside when the purchase agreement for the land specifies a different procedure.
If there’s a lot of money involved in this deal (like, more than a few thousand dollars) and if you’re AT ALL unsure about their level of competence or trustworthiness – then I wouldn’t hesitate to push for a professional title company or closing attorney to get involved. That will resolve pretty much all of the issues that can come up in this kind of scenario. If you don’t know them well, then you have every reason to be skeptical for your own sake.
Lack of advice or tools: You may miss an agent’s help throughout the process, starting with when you set a listing price. Online price calculators may not be sufficient to determine the fair market value of your home because they use completed sales, which tend to lag the market by a few months. Also, the algorithms don’t necessarily account for factors like curb appeal, landscaping, recent renovations, or school district lines.
When people are selling their homes, they hear a lot about the value of staging to make the home look better and to speed up the sale process. While you can’t really “stage” your land — unless you want to strategically place a few cows or sheep here and there to make farmland look more “farmy” — there are several things you can do to speed up the process of selling your land.
2. Clean Up the Junk: If you didn’t do this when you bought the place, now is the time. Other than buildings of value, get rid of everything that didn’t grow there. This doesn’t have to be a major ordeal. First check out local laws regarding what, if anything, can be burned at your location. Nearly all states have laws against burning old tires and many forbid burning other items such as other rubber products; wire; treated, painted or finished wood; plastics; garbage; heavy oils; asphalt materials; building materials, especially those containing asbestos; paints; and agricultural and household chemicals. Then, if you have anything combustible, and plenty of water and a way to disperse it, go ahead and burn what you can, but make absolutely, positively certain the fire is out before you leave. “Out” in this case means cold to the touch.
Seth, I hope I’m not pestering with too many questions. Your web site has been invaluable. It’s probably covered on your web site, but I may have missed it: In a purchase transaction where we are closing the deal ourselves with a Notary, when do we mail the seller their cashier’s check. After the County returns your stamped documents? Supposing the seller is uncertain. What would you think of (A) leaving the cashiers check with the Notary to mail directly to the seller upon recording of the transaction or (B) including something in the packet we mail to the effect of “transaction will be voided if seller does not receive payment in the agreed upon amount of _________________ within two weeks of recording”. I like the idea of including a copy of the cashiers check. Or is this just too much of me worrying over nothing?
With a Warranty Deed, the seller is giving the buyer their “Warranty” (i.e. – Guarantee/Promise) that the title to the property is free and clear and the buyer will receive all reasonable rights to the property. This deed should only be used when the buyer knows for a fact that the property's title is clear of any liens and encumbrances. Most educated buyers will strongly prefer this type of deed (and if a lender gets involved – it will be required).
Access: While few in number, there are still some properties that don’t have legal access – that is, a deeded access-easement, or frontage on a public road. This is what is known as “landlocked” property, and it is of considerably less value. If you see an extremely low-priced piece of land for sale, it may be a bargain, or it may just not have legal access. Curing this can be fairly simple, but don’t count on it. If it were an easy matter, it would likely already have been fixed. In most cases, legal access will require a deed from the neighbor whose land you’re crossing, and folks tend not to like to sign deeds unless they get something of significant value in return.