Back in the day, there was so much available land in the U.S., especially in Kansas and other Midwestern and Western states, that the federal government was giving it away for next to nothing. Thanks to the Homestead Act of 1862, settlers who made their homes on land and stayed there for at least five years could take ownership of up to 160 acres, all for the price of a small filing fee.
You may also want a lawyer to produce and review contract documents; some states actually require you to hire one. Although you can find much of the paperwork online, Schorr says, “you need to tailor it to your deal — and the way you fill it out is just as important as what the boilerplate language says.” You’ll probably pay $1,000 to $3,000, depending on the cost of living in your area, but you’ll get an experienced pro who’s in your corner and can make sure the deal gets done right.
While a good agent can certainly help with the negotiation process, he or she also has a vested interest in the transaction. “And closing the deal may in some cases be more important to the agent than getting you the absolute best price,” Schorr says. If you’re a good negotiator and can handle the process without emotion and with clear eyes, you might do better on your own.
If you have an underlying loan, given a choice between a straight contract or a wrap-around contract, offer the wrap-around land contract. It will give you an override on the existing interest rate of the first mortgage. Ask for legal advice about an alienation clause. The lender could call your loan due and payable if the lender discovers you have sold the home through a land contract.
Thanks for the quick response. When I took the documents, generated by the attorney, to the county recorder, they did not look at them. The attorney had explained to the buyer at the closing the significance of recording the deed, joking it would prevent me from reselling the property. In hindsight, the attorney was about to leave on a cruise, so he may have rushed through this transaction. I will contact the attorney for his assistance. Thank you again.
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.
If your house gets lots of attention and you get good offers, stay the course and be prepared to give up a little of your savings to close the deal. But if the process drags on without any real bites, hire an agent. You’ve lost nothing but time, and you’ll enter the agreement with a far better understanding of how it works and how to get the most from your agent.
Advertise your property is for sale. Be sure to include location, price, dimensions and any other information that could add value to the land. For example, if your land has a lake view or beach access, it is important to mention that on the listing as well. Advertising mediums such as newspapers, television, signage or the Internet can be used to promote the sale of your property.
You may want to add an ‘escape’ clause, which allows you to keep the house on the market while the buyer sorts out the conditions of purchase (e.g. arranging finance, getting a builder’s report). If you receive another offer during this time, the clause gives the buyer a set number of days in which to go unconditional, and if they don’t you would be free to take up the other buyer’s offer instead.
I have a brokerage in Indiana, Kentucky, and Tennessee that focuses specifically in land, so what I have done is created a nationwide advertising service to attract more buyers. I advertise on several investor channels like CNBC, Bloomberg, Fox Business and then also channels watched by people interested in land and the outdoors like the Outdoor Channel.