Inexperienced land buyer - looking for help

Tuesday · #1 02/06/13, 02:05 AM

sorry if this should be in the real estate thread - potentially questions outside that field.

I recently came into a fair bit of money, making a long time desire of living in/starting an intentional community in the form of a self-sustaining agricultural 'village' possible. That was merely a pipe dream until coming across funds - potentially making this a reality! Problem is, I barely know where to start, I am feeling overwhelmed by all of it - due largely to the fact I have never owned property before and know next to nothing about real estate. If anyone would care to point me in the right direction and answer some possibly (probably) stupid questions it would be greatly appreciated!

theemon · #2 02/06/13, 03:19 AM

im no expert, but spend the better part of the day reading this website and youll gain a ton of knowledge u didnt know u needed

Lazy J · #3 02/06/13, 06:33 AM

Hmm, am I the only with with a sense of Deja Vu on this post?

Start looking through the threads here on HT for information, do a search on intentional communities, there should be a few threads where this was discussed.

MichaelK! · #4 02/06/13, 08:14 AM

The first thing we did when we decided to purchase our land is to hire a lawyer with real-estate contract experience.

When we started shopping, I wrote a cover letter that I shotgunned out to all the realtors in the areas of was interested in, then made follow-up phone calls to them the following week.

Narrowed the list to about 6 properties, and took a week off from work to visit each one in the spring of 2005. Finally picked one and started negotiations. Brought the lawyer back into the picture at this point to help write a contract, and carefully review the counter-offers the sellor was making. His expertise was critical in making sure that everything was done properly, and nothing was going to pop up later that would haunt us.

AngieM2 · #5 02/06/13, 08:26 AM

Quote:

Originally Posted by Lazy J

Hmm, am I the only with with a sense of Deja Vu on this post?

Start looking through the threads here on HT for information, do a search on intentional communities, there should be a few threads where this was discussed.

New people ask questions that we've seen before, if you've been here long enough. Nothing wrong with that.

Some people help the new person.

AngieM2 · #6 02/06/13, 08:27 AM

Tuesday - this thread from earlier may be of some interest to you in your research.

Commune living?

At least it is a starting place.

watcher · #7 02/06/13, 12:24 PM

Get the property surveyed so you know the LEGAL property lines. Make sure you get all the rights with the property, specifically mineral rights.

Keep a few things in mind about your real estate agent. 1) The more they can get you to pay for a property the more they make. 2) They are not lawyers and are forbidden to give legal advice. 3) Never assume what they say is in a contract is really in there. IOW, read and UNDERSTAND what you are signing. 4) The lawyer involved in the sale is there to protect the real estate agents not the seller nor buyer.

ChristieAcres · #8 02/06/13, 12:34 PM

Quote:

Originally Posted by watcher

Get the property surveyed so you know the LEGAL property lines. Make sure you get all the rights with the property, specifically mineral rights.

Keep a few things in mind about your real estate agent. 1) The more they can get you to pay for a property the more they make. 2) They are not lawyers and are forbidden to give legal advice. 3) Never assume what they say is in a contract is really in there. IOW, read and UNDERSTAND what you are signing. 4) The lawyer involved in the sale is there to protect the real estate agents not the seller nor buyer.

Absolutely, get the whole Bundle of Rights!

1- As a Buyers Agent, my job is to negotiate the best deal, and the LOWEST PRICE. If there is no Closing, I don't get paid. Listing Agents should try to get the most for their Sellers, for obvious reasons.
2- Agents don't give Legal Advice, but I use WA State Standard Real Estate Purchase and Sale Agreements with approved Addenda. There is a Board of Attorneys who have written everything!
3- In WA, although different elsewhere, Attorney's are not required to be involved in a Real Estate transaction
4- Here, Real Estate Attorney's are utilized in purchases at times, but are paid for and represent ONLY the Legal Interests of the Client, not me!

luvrulz · #9 02/06/13, 07:55 PM

It might also help to know where you are, how much land you were thinking of, how you thought it might work out, any other info you might think possibly important?

watcher · #10 02/07/13, 12:10 PM

Quote:

Originally Posted by lorichristie

Absolutely, get the whole Bundle of Rights!

1- As a Buyers Agent, my job is to negotiate the best deal, and the LOWEST PRICE. If there is no Closing, I don't get paid. Listing Agents should try to get the most for their Sellers, for obvious reasons.

Really, do you get paid a flat rate or do you get a percentage? If its a percentage then its in your interest to have me pay as much as possible for the property because the more I pay the more you make. You maybe different but if most agents knew I was willing to pay $10,000 more than the seller would accept they would go along with me making the higher offer because it means extra money in their pocket.

Quote:

Originally Posted by lorichristie

2- Agents don't give Legal Advice, but I use WA State Standard Real Estate Purchase and Sale Agreements with approved Addenda. There is a Board of Attorneys who have written everything!

In most states an agent can lose their licenses for giving legal advice. The odds are one agent and maybe the entire company I'm dealing with is going to lose their license for doing just this.

ET1 SS · #11 02/07/13, 12:27 PM

Quote:

Originally Posted by Tuesday

sorry if this should be in the real estate thread - potentially questions outside that field.

I recently came into a fair bit of money, making a long time desire of living in/starting an intentional community in the form of a self-sustaining agricultural 'village' possible. That was merely a pipe dream until coming across funds - potentially making this a reality! Problem is, I barely know where to start, I am feeling overwhelmed by all of it - due largely to the fact I have never owned property before and know next to nothing about real estate. If anyone would care to point me in the right direction and answer some possibly (probably) stupid questions it would be greatly appreciated!

http://www.piscataquisvillage.org/

Or another.

ChristieAcres · #12 02/07/13, 02:16 PM

Quote:

Originally Posted by watcher

Really, do you get paid a flat rate or do you get a percentage? If its a percentage then its in your interest to have me pay as much as possible for the property because the more I pay the more you make. You maybe different but if most agents knew I was willing to pay $10,000 more than the seller would accept they would go along with me making the higher offer because it means extra money in their pocket.

Yes, I am different than most, it seems. But I speak for myself! You would not doubt my words if you spoke to my Clients. I get a %, but that matters not at all if my Clients don't buy or sell a property. Them getting the best deal is my priority!

In most states an agent can lose their licenses for giving legal advice. The odds are one agent and maybe the entire company I'm dealing with is going to lose their license for doing just this.

I wouldn't debate that for a second, as Agents who clearly give out legal advice, should know better. I only give out info I am legally allowed to, but refer to Atty's without hesitation when the situation clearly warrants it. Also, I do not make changes to the Legal Forms written by Atty's we are required to use in WA.

Those in the profession who aren't honest, ethical, and put their Clients first? They shouldn't be in the business.

rambler · #13 02/07/13, 04:22 PM

In general, the vast majority of folk here on this site (including me) are fiercely independent people that abhore the idea of a commune, home owners association, or some sort of shared living/ property arrangement.

There are some that have been, or like, the intentional community concept, but just so you know, many of us think its a horrible idea and so you will see that strong bias here.

Buying property you want to know what exactly you will own, and if there are any easements on it, or any homeowners rules, covenants, or city or township or county code restrictions.

All of this can be found in the deed or the local courthouse, but likely best to pay someone to sort it out with a title search and or insurance. Even those are not foolproof, but how it goes.

As to the intentional community part, you expose yourself to people who don't have much coming and living there free for a while, then moving on. You expose yourself, as the landowner, to a lot of liabity should your customers hurt themselves. I would check out the price of -good- liabity insureance and see what that costs.

This is a very brief answer to abig big big question, depends what direction you want to go from here, please ask deeper questions as follow up.

And again, I hope you do well with your plans, and some intentional communities have worked, don't mean to be negative nanny, just telling you how people will react to that part of it around here......

Paul

watcher · #14 02/07/13, 05:01 PM

Quote:

Originally Posted by lorichristie

Yes, I am different than most, it seems. But I speak for myself! You would not doubt my words if you spoke to my Clients. I get a %, but that matters not at all if my Clients don't buy or sell a property. Them getting the best deal is my priority!

Again if a client who was willing to pay $150K for a property which you were 90+% sure would sell for $140K why would you offer the 140? After all at the 150K amount everyone would be happy. He's happy to pay that, the seller's happy to get it, his agent is happy with the extra money and wouldn't you be happy with the extra money?

That's the point, when you have someone arranging a purchase for you who is being paid a percentage of the amount you pay its in their interest to make sure you pay the absolute most you are willing to pay.

Big Dave · #15 02/09/13, 10:12 AM

Welcome Tuesday. Sometimes you need your fireproof drawers on but over all they are all good folk. I know where there is 25,000 acres in Oklahoma. It would make a heack of a commune. Welcome to the show.

CesumPec · #16 02/09/13, 11:32 AM

Never reveal all to your real estate agent. they are the enemy of your wallet and long term interests. Even if it is a buyer's broker, he is still trying to get a deal done, that is his main goal. And sometimes your best move is to move on and not do that deal. Don't tell them honestly how much you are willing to pay, how much money you have, what payments you can afford, how much you LOVE the place and that you just have to have it. If you can afford to pay a dollar, make them believe all you've got is 75 cents and they will negotiate on your behalf with much more vigor.

AFA a commune, not for me but I understand their appeal. Lots of Kibbutzes in Israel, some are successful, some not. Google Kibbutz.

What I would have love to have found is a community of like minded people that desire to live independently, but share interests in small ag values, independence, prepping, small gov't, etc. There was nothing like that where I wanted to live till I die and it probably is a pipe dream because many of those sorts of people are not the most sociable.

I_don't_know · #17 02/09/13, 01:08 PM

Have you any idea what a large number of the people that win the Lotto wind up in bankruptcy? Be for you spend a penny find a financial planer. You have no idea how many leaches are waiting to suck you dry. I had a living trust set up for my disabled daughter; there will be no taxes on the estate when I pass. You hire them they work for you, not what ever commission they may make by selling you stock. Even with the planer on your side, move with caution.
Write up your plan for this community, cover every detail, check the laws, every possible problem you can think of. Then run it by others; you have already had at least one negative response here; how will others respond. To be able to share your dream would be wonderful, just share it but not loose control of it. It is after all your dream.

Ozarks Tom · #18 02/09/13, 01:49 PM

Like most people here, my wife and I are rather independent, not reclusive by any means, but enjoy not answering to others. My question to you would be why you desire to be part of a community? Perhaps, putting down in writing your reasons would help put in perspective your long term plans and needs. Also, it would help others here understand and advise if possible.

FarmerDavid · #19 02/09/13, 01:50 PM

Quote:

Originally Posted by watcher

Again if a client who was willing to pay $150K for a property which you were 90+% sure would sell for $140K why would you offer the 140? After all at the 150K amount everyone would be happy. He's happy to pay that, the seller's happy to get it, his agent is happy with the extra money and wouldn't you be happy with the extra money?

That's the point, when you have someone arranging a purchase for you who is being paid a percentage of the amount you pay its in their interest to make sure you pay the absolute most you are willing to pay.

My agent did just what your suggesting they wouldn't do. Told us we could counter with 160k, but I know they will accept 150k, which they did. Maybe 150 wasn't their bottom but he did save us 10k.

CesumPec · #20 02/10/13, 12:07 AM

Quote:

Originally Posted by FarmerDavid

My agent did just what your suggesting they wouldn't do. Told us we could counter with 160k, but I know they will accept 150k, which they did. Maybe 150 wasn't their bottom but he did save us 10k.

good for you and great that you got a good agent. there are plenty of good agents out there who understand that long term relationships and recommendations are worth more than one quicke deal where they don't work in the client's best interests. Unfortunately, it is difficult to know if you've got a genuine good guy or a guy that is good at hiding how bad he is.