Land Purchase - Process

[Burnadell]

Just a question, why not use a Realtor? Doesn't cost you, the buyer.....

Only suggestion I would offer if not using a professional is to get an attorney to look over all contracts, agreements and the sort.

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As a buyer you DON'T want to use a realtor? As someone answered, the SELLER pays the commission, NOT the buyer?? Retired from the land sales business, I can tell you it's a different thing than just buying a house and the big box banks don't do just land loans. In my experience my previous company always had lenders that ''SPECIALIZED in land loans," so the process from the beginning was accurate and there was NO guessing! Also, if you are a Veteran or current military you also have the option of The Texas Veteran's Land Board for financing.

I'm always amazed seeing threads for buying land and the misconceptions of the process. Yes, there are inept and lazy real estate agents but THAT'S why you do your research and enlist a LAND, RANCH, FARM experienced agent who knows the in's and out's. As stated, I'm retired so have no motivation for the OP, rather just to perhaps help and provide some guidance.

Good luck and do your diligence in researching the land/neighbors/area/water/electric/taxes/ag exemption/flood plain/restrictions/etc, etc,...

Perhaps the seller has it for sale by owner and does not want to pay a realtor fee.

[Big pig]

Are you buying it cash? Seller finance? If not your first stop needs to be a bank. Figure out whose going to pay for the survey, and then order that. Appraisal is for a lender or if you two cant come to an agreement on fair market value for the property. Once you come to an agreement you will need to visit with the title company and open title on it so that they can make sure all is clear. They will help you the rest of the way.

This is what I did. Property was not listed.

[BitBackShot]

Realtors go by the 80/20 rule, but it's more like 95/5. About 5% of them are competent, hard working people that will help you. The other 95 couldn't care less if you get completely screwed in the deal as long as they get their commission.

You can easily do a deal without using one. Make sure it's got good title (title company) and check the boxes on access, flood plain, restrictions to building that may exist, etc.

You can pretty easily obtain copies of all the paperwork a broker would use.

[M16]

As a buyer you DON'T want to use a realtor? As someone answered, the SELLER pays the commission, NOT the buyer?? ...

Do you seriously think that the sales commission is not built into the price? I can assure you that every piece of property I have sold had it included.

[M16]

A bank won't finance raw land. .

Really? I’m gonna have to let my friends in the banking business know that they can’t be doing what they’ve been doing. Is this a new banking regulation? Where did you get this information?

[M16]

Title company will help close the transaction but you are best served to hire an attorney to represent your interests, particularly since you are the buyer and most especially since you intend to build a house on this land.

I’d follow this advice. Don’t ever buy real estate without having an attorney represent you

[Kdog]

Title company will help close the transaction but you are best served to hire an attorney to represent your interests, particularly since you are the buyer and most especially since you intend to build a house on this land.

I think this is good advice. Although you should try to find the right attorney. I was looking at some property recently that had an easement through it. I had some concerns and wanted to get it researched before I made an offer. I found my real estate agent and the local attorney I contacted to be worthless when it came to actually doing this. They just wanted to leave it to the title company for later. Seller ended up rejecting my offer anyway, so no need to worry, lol.

I previously had a bad experience buying a property directly from someone. He told me there were two right of way easements to the property and sent me the information from the survey company. I accepted it without researching it further. I found out later only one of the easements carried with the property over to me. This was stated in my paperwork at closing but I didn't look close enough at it. So my advice would be whatever you do to read the fine print and be careful of any easements you might be dealing with. Good luck.

[wingnut]

A bank won't finance raw land. Call Capital Farm Credit for financing. Texas Farm Credit really drug their heals and wanted a lot more down because they appraised the property low. I had financing approved in less than 10 day with Capital.

This is incorrect information. Where I live every bank in town all six of the banks will finance raw land. I have no clue where you get that banks will not finance raw land. Also my Texas bank financed the land I just bought in Oklahoma.