Land Purchase - Process

[Kenner97]

My wife and I are looking at buying 20 acres to eventually build a house on. Don't really know where to start.
The land we are interested in would be purchased directly from landowner and not through realtor.
I'm assuming we need to get the land surveyed and appraised first to make sure everything checks out.
What are the next steps?

[chase15]

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.

[DFWPI]

My wife and I are looking at buying 20 acres to eventually build a house on. Don't really know where to start.
The land we are interested in would be purchased directly from landowner and not through realtor.
I'm assuming we need to get the land surveyed and appraised first to make sure everything checks out.
What are the next steps?

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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[The Crippler]

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

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So you can negotiate 3-6% off of the purchase price...

OP, get a contract and submit it to a title company. They will take care of the rest.

[hillcountryhunter]

We are currently in the process of purchasing 200 acres from my wife’s grandparents. We have done everything through a real estate attorney due to the financing being seller financed. So far it has been very smooth and hassle free.

[Kenner97]

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.

Will be financing. I'm going to make a few calls today. My wife's cousin works for Capital Farm Credit. I have excellent credit so financing shouldn't be a problem. thanks for the info!!

[Kevin]

I did the exact same thing. I found a local realtor that would take a reasonable flat fee to help with everything and between her and the title company, it was easy.

[Palmetto]

I did one this year with my out-state neighbor.
We came to an agreement on price & conditions over the phone. I really wanted the property, and the price was right, so I paid for everything but the sellers pro-rated taxes (closing costs, survey, appraisal, etc) .

Here is how I went about it:
1. Called local survey company and ordered a survey. Told them what title company I was using.
2. Fill this out, get the seller to sign it, and send it to capital farm credit, and to your title company. They should take care of everything from there.

https://www.trec.texas.gov/forms/farm-and-ranch-contract-0

Your title company will help you with the contract if you have questions as to what things mean. Some things are kinda confusing if you have never looked at one.

[Quackerbox]

So you can negotiate 3-6% off of the purchase price...

OP, get a contract and submit it to a title company. They will take care of the rest.

Kinda agree here. Wife and I bought land first of the year. I wish we haven't used a realtor. Being wife and I did all the leg work we ****** away 6%.

Both agents lazy and I had to blast the sellers agent online and via email to get survey company his money

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[Grayson]

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.

[E.TX.BOWHUNTER]

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.

[kumathebear]

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,...

[Quackerbox]

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.

Wrong.

I have loan docs to prove it

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[Brazos Hunter]

We purchased a little place on the coast. Our process was fairly painless and quick. We scheduled a closing date with a title company. They emailed me the total with property taxes. Went to the bank and darn near cleaned my account out (saved for property for many years) to get a cashiers check for the full amount. I did have to get a statement from my bank showing where the money came from though. Anyway, we show up and closing, sign our name a half dozen times, turn over the check, and walk out owning something else to pay taxes on.

We would have gotten it surveyed but a previous buyer that backed out due to funding had it done a couple months before and the pins were still in place.


Michael


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[Firefyter]

There are banks that finance raw land that don’t sell to the secondary market. One is First Bank of Anderson. I send a lot of clients there and my wife does most of their appraisals. Use a realtor that specializes in acreage and farm and ranch.