Be Ready for the Give and Take
Most people do not want to live a life of regrets, right? And one of the biggest buying decisions of a person’s life is when they buy property such as land or a house. These “big purchases” can feel overwhelming, and there can be some second guessing involved. “Should I have done this?” is often asked after the contract is signed. With that in mind, how can you make a good land buying decision? Ideally, you can work with a land brokerage firm that specializes in land deals. That way you’re not going at it alone and you have expert care and guidance throughout the process.
Indeed, buying land is a give and take process. Sellers will quote the price they want and buyers will usually counter with a lesser price… or seek concessions. If you’re not the kind of person who thrives at negotiations–and most people aren’t– then it’s wise to leave the negotiations to experts who do it for a living, such as land brokerage firms. A good land buying decision typically means that both the seller and the buyer are happy with what happened– a good deal was done.
Try to Avoid Overly Emotional Decisions
Sometimes people will drive by a piece of land for sale and instantly fall in love with it to the point where they can’t stop thinking about it! This is an emotional love affair with land that can sometimes cloud a person’s better judgement. Therefore, it’s best to take a logical approach to land buying rather than an emotional one, if you can. There’s a lot that can be learned about a particular piece of land (and what’s underneath it, what it can be used for, etc.)… Rather than make a rash decision to buy land just because you liked the look of it or have some sort of emotional connection to it (perhaps it reminds you of where you grew up), you should take the time to do research before signing any paperwork. Talk to people like engineers, inspectors, and attorneys. Compare prices locally. See if there’s anything unique or special about the land– and if anyone else has shown interest recently, for whatever reason.
Have a Plan for the Land
Ideally, what will the land you want to buy be used for? Will it be for a cabin or home? A storage building? Hunting grounds? Tree farming? You should have in mind what you want to buy land for, and then focus on that; Find out if the land you’re interested in would make sense for what you want to use it for, too.
Find the Right Value
When trying to make a good land buying decision, review the property and its price. Is it worth it to you? Would you pay full price for it or is it overpriced and you want to get a better deal on it? If so, that will involve time, phone calls and negotiations. Also, if possible, check the deed to see if there are any easements or rights that have been granted for the use of the property without having to own it. Perhaps a neighbor needs to use part of the land for a driveway– you need to know this before you buy it! If possible, look at other area properties for sale and compare all of them. Is the one you’re most interested in a truly good deal?
Other Things to Look For
Other things to check for when buying land include things like covenants, restrictions, zoning ordinances, and local laws. Working with a land brokerage firm like Metcalf Land Company can help make this research easier.
Analyze the cost. Don’t just consider the purchase price, but think ahead to what you’d have to spend to bring the land up to the standard(s) you’d expect. For instance, would you have to add water or electric lines? Would you need a stone or paved driveway installed? How much would the total cost be when you factor in amenities you’d want to add to the land? Can you afford this? Do you want to take on such a project?
If you’re going to make a good land buying decision, keep in mind that you shouldn’t end up paying a price higher than what you initially set as your maximum purchase price to pay. So, if you have a ballpark figure in mind– say, $250,000– don’t buy a property over that price because it’s more than you can truly afford. As stated before, don’t think too emotionally about land or else you’ll end up paying too much money and/or being disappointed when it’s not a “good deal” for whatever reason. It’s best if you think in terms of dollars and “sense.” Try to make thoughtful, sensible decisions when it comes to buying land.