Making an offer on vacant land

mldrenen · #1 02/26/09, 01:41 PM

any and all advice appreciated.

details: 3 1/2 acres, wooded, mostly level, perc test, surveyed, priced in line with similar properties in the area.

what should i be asking and/or researching? how do i make an offer?

Tricky Grama · #2 02/26/09, 02:59 PM

I'm sure someone who actually knows something will chime in.

I'd say go by what they used to say on homes-offer 10% off asking price. This may apply to land too. We offered less & then after negotiaing, settled on a price.

Good luck!

Patty

watcher · #3 02/26/09, 03:03 PM

Go to the court house (or even online in some places) and see how much similar properties sold for last year. Use that to base your price on, but remember the market is down so the land is probably not worth as much now.

jassytoo · #4 02/26/09, 03:12 PM

Check that there are no easements over it.

Ozarkquilter46 · #5 02/26/09, 07:29 PM

make sure its not in a flood plain

fransean · #6 02/26/09, 07:38 PM

The important questions that I did not think of right away when we were searching for land were about access and utilities.
How far is electricity? How much will it cost to bring it to your land?
How deep are the wells in that area? - if you are going to need a well.
Are there restrictions on building on that size parcel?
Does the land have year round access? Is the road maintained?

Ryan NC · #7 02/26/09, 09:36 PM

IF you can get to the owner and are not dealing with a realtor there are some SMOKIN deals to be had right now... weasel your way to the seller, talk to them, get to know them a bit and the reason they are selling, then simply ask them what the best cash price they could do for the land... wince at their response (even if you like it) and ask "are you sure that's the best you can do???"

Negotiations are a skill that take some time to master but with just this little negotiation game you can land an above average deal 50-75%+ of the time. Many times I will have to walk away from a property for 60-90 days only to come back and be thanked for buying it at my price later on. I don’t make offers on property, I try to let sellers talk me in to buying it from them…

I would HIGHLY recommend you pick up a book By Lonnie Scruggs called "deals on wheels" if for no other reason than the negotiation chapter. It's about $30 and you can download it in ebook form today if you want.

beaglebiz · #8 02/27/09, 05:50 AM

Its very difficult to get a loan for just land, so if you can do it, lowball as much as you can. Our land, where we live we got about 35% off asking price. The realtor did not want to make the offer, but under PA state law she had to. They countered a bit higher, and finally accepted, contingent upon passing perc test, and a bunch of other things. cash helps

pheasantplucker · #9 02/27/09, 05:56 AM

If I really liked the place, I would start with a bid between 75-80% of their asking price...You know they built a little "buffer" in, just for that reason...then I'd negotiate up to 90%. Get more and more "resistant" as the price increases (take longer to respond and don't share your strategy with your real estate agent)/ they will play both sides to get the most dough for themselves.