Purchasing Land – Part II
Once a contract price has been agreed upon the due diligence period begins. Entire books have been written about negotiating deals, especially in real estate transactions. Instead of diving into that rabbit hole I would simply advise you to work with an experienced land specialist. Not all Realtors sell land and many agents are not fluent with the land transaction process. Not all Realtors know the ins and outs of selling beach condos, or commercial properties either. The key is to work with an agent who has experience with the type of real estate you’re interested in purchasing.
There are a number of things to consider during the due diligence period. Due diligence is defined as “a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its potential.”
Easements are common in recreational, timber land, and farm land sales. Easements vary in usage, width, length, purpose, and function. However, easements aren’t as scary as you may think. Understanding their purpose is something that needs to be done prior to closing and professional help needs to be sought after. Nobody wants to purchase a property only to find out their neighbor has a right-of-way across their land, or any similar unforeseen issues.
Restrictions are another aspect of land sales to be aware of. Some properties have restrictions that may prohibit certain activities. From the square footage of potential home sites to recreational activities such as shooting firearms or riding ATVs. Not all properties have restrictions, but adequate work needs to be done to determine if any exist and if so, what they are.
Flood zones, septic permits, well water sites, tax status, surveys etc. All of the aforementioned topics are things that need to be understood prior to purchasing land. While this may sound intimidating, it’s very common for us.
Many times a land purchase is one of the largest transactions a person makes in their life, so buyers deserve to know everything possible about a particular piece of land. The best way to ensure this is to work with a land specialist from our team. You can rest assured we won’t take the opportunity to serve you for granted.