Just like any sale of real estate, a land contract should begin with a purchase agreement. This is a legal document signed by a potential buyer making an offer on the real property for sale. The purchase agreement should indicate that the offer is for a land contract, and should state the purchase price, initial cash down payment, length of the payment term, and any other terms of sale.

In recent years, however, a combination of extremely low interest rates on savings accounts coupled with fluctuations in the stock market have helped to increase interest in the purchase of land as part of an investment strategy. These conditions may seem negative, but they can be good news for land owners. If you currently own vacant property that you would like to sell, the following tips are designed to help you get your land noticed by more buyers, increase your chances of getting a great offer and move on to a successful sale.

Sellers have a choice between using an estate agent to market their property or selling privately. There are benefits to using both and it is up to the buyer to decide which option to take. Selling privately has an obvious cost benefit and puts you in control of the selling process. You get to decide who to show the property to and when to allow buyers access to your home. You, as the seller, also have intimate knowledge about the home’s history and the area, and will be able to add value to the buyer. Sellers should however have some knowledge of the property market and decent negotiation skills if they decide to go down this route. .
Perhaps you’ve inherited some land, decided to sell some investment property or are just in need of some extra cash. Either way, selling land by owner can require some extra work but in the long run will ultimately be more profitable than selling with a real estate agent. There are a few things you must keep in mind before deciding to sell land by owner.
In terms of paying off the mortgage, you’d have to work directly with the lender to make sure they get paid and that they discharge their mortgage. If you’re unsure about how the process works, then honestly – it probably is best to just work with a title company. It may cost a few hundred dollars more – but for a property like what you’re describing, that’s what I would be doing anyway (I use title companies for anything in excess of $10K). They will take all the guesswork out of this process and make it WAY easier to get the job done.

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.
Now, when you get into the more expensive properties, as a general rule – it’s usually safer to work through a title company on those (and it’s easier to justify the costs too), and in those cases, you may not have a choice but to do a quiet title action, because the deal won’t close without this extra step. But again, since there will most likely be more profit baked into these larger deals, it may be easier to justify these costs.
If you feel that your agent isn't performing to your expectations, engage in an open conversation with them explaining what you feel isn't being done. Refer to the services spelled out in the contract. It's possible that miscommunication is the problem, and tour listing agent should get the opportunity to make it right. If you still don't see results, talk to other brokers at the firm carrying your listing and see if they can meet your needs.
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.
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.
Left unattended, vacant land quickly becomes overgrown with weeds, sprouts, saplings and other vegetation that can make it difficult for interested parties to view the property or imagine its suitability for a specific purpose. Even worse, prospective buyers may discount any offer they do make on land that is very overgrown or filled with garbage or other waste.

A deed to transfer the legal title of the property from the seller to the buyer should be drafted and signed by the seller at the closing. This deed will be held in escrow until the final payment is made on the land contract and then filed with the appropriate government agency, such as the county clerk in the county where the property is located. Held in escrow means that the deed is held until a triggering event, payment of the land contract. A title agency, an attorney, or a financial institution may hold the deed in escrow for the buyer and seller.
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.
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.
There always seems to be an endless pile of paperwork and a lot of legal hoops to jump through (everybody wants to protect themselves from liability, etc).  While some of this documentation is certainly good practice – I've learned that when you boil it all down, closing a real estate transaction is actually a fairly simple process – especially when it's an all-cash transaction (no financing or mortgages involved).
For what it’s worth, I do know of at least one wholesaler who has worked in Florida for years (though he does use a title company for every deal, he doesn’t close them himself). Given the logistical challenges with assigning contracts, I wouldn’t recommend trying to do these types of deals without a title company – it requires A LOT more running around and coordination than just paying cash and buying the property yourself.
In the very least, your land contract should include the address of the property and a full legal description of the land. It should also include the down payment amount, purchase price, the number of payments that will be made, the monthly payment amounts, and any balloon payments that may be required. You may also consider creating and attaching an amortization schedule.
Now, far be it from me to discourage using an agent.  This certainly is the easiest way and not necessarily the least profitable or most expensive, especially in a booming market.  In a less-than-booming market however, it’s good to remember that listing your property with an agent will subject it to comparison with dozens, perhaps hundreds of other listings, all competing with yours in features and price. Selling your property then, will probably require that a potential buyer finds it to be either the best he sees… or the cheapest.
A somewhat surprising fact about selling real estate is that it can be far more difficult to find a buyer for a piece of vacant land than it is for most types of existing homes. The reasons for this are many, but often they are related to either the location of the land or the amount of work or expense that might be necessary to improve vacant land for a specific usage.
×