Industrial Land For Sale

Start your journey with this road map if you’re ready to make your dream of owning land a reality.
Land sales are constantly growing, according to the National Association of Realtors’ Land Market Survey, and for good reason. Undeveloped property is one of the most cost-effective types of real estate, making it more affordable to first-time purchasers.

Unfortunately, purchasing property can be a stressful and complicated experience. Let’s go through the stages so you can make an informed decision when it’s time to acquire property.

How to Locate Foreclosed Land

 

The following are some of the most effective methods for locating land for sale:

Websites for Real Estate

Most consumers begin their land search by searching internet real estate databases, according to Trent Hedge, director of operations at Atmos Builders. Land for sale listings may be found on sites like Zillow.com, Trulia.com, RedFin.com, and Realtor.com, and other databases specialize on empty land listings. The following are some of the biggest and most popular specialist databases:

 

• LandWatch.com.

 

• Land.com.

 

• LandSearch.com.

 

• LandHub.com.

 

• LandAndFarm.com.

 

These websites primarily provide listings from the Multiple Listing Service (MLS), which only licensed real estate agents have access to, but they may also have for sale by owner (FSBO) listings.

 

A real estate agent representing the seller (also known as a seller’s agent) will generally be the point of contact for MLS listings. Agents for sellers are both monetarily and morally committed to represent the seller’s interests. As a result, hiring your own representative (a buyer’s agent) to represent your interests is often suggested.

Agents of Real Estate

When it comes to locating land, real estate professionals may be really helpful. Through their network of industry specialists, such as land developers and contractors, they have access to every listing on the MLS (“on market”) as well as properties not listed on the MLS (“off market” properties).

 

While any real estate brokers can help with land acquisitions, those that specialize in raw property are the best. Working with “agents with a significant history of land sales or knowledge in soil science, geology, or forestry,” says Christopher McGuire, a real estate broker, investor, and creator of Real Estate Exam Ninja.

 

If you can locate one in your region, McGuire recommends utilizing agents who have earned the Accredited Land Consultant (ALC) credential from the Realtors Land Institute (RLI). These agents have been trained to assist you in completing the essential due diligence and legal processes for land transactions.

Resources available in the area

Some FSBO homes may be located in local newspaper classified advertisements or internet sites such as Craiglist and Facebook Marketplace. Greg Bond, the creator and CEO of EasySellFL.com, also suggests contacting landowners directly. “We’ve contacted communities with affordable, buildable lots and discovered that the owners are often willing to deal with their property at a significant discount,” Bond adds.

Bond recommends looking for landowner contact information on the County Assessor’s Office website’s Geographic Information Systems (GIS) map. Bond also recommends looking into county tax deed auctions, when land is auctioned off at a reduced price when the owner fails to pay property taxes.

When looking for land, there are a few things to keep in mind.

Certain elements may impact whether or not a piece of land will meet your unique requirements, as well as the difficulty and cost of constructing on it. Keep the following points in mind when you hunt for land.

Access to Public Services

 

Water. You may need to establish a well or another off-grid water system if a municipal water supply isn’t accessible on the site. Another alternative is to transport goods by boat, which may be pricey and cumbersome.

 

Sewer. If there isn’t a municipal sewer connection, a septic tank will have to be erected before any work can begin.

 

Electricity. The local utility provider will need to install an electric line to the construction site if one isn’t already there. Installing a solar-powered system is another possibility.

 

Internet access is available. Check to see whether there is cellphone service and an internet connection on the site. It’s possible that you’ll need to change cellular service providers or lay a fiber-optic internet line to the construction site.

Access to the Road

Some of the houses built in isolated areas do not have access to the road. If the property does not have a public or private road leading to it, you may need to build one. This is often expensive. It will almost certainly need hiring an excavating firm as well as an arborist or logging business to remove trees. If the lot is landlocked by neighbouring property, McGuire says you may need to file for a right-of-way easement to obtain access to surrounding properties.

Land Financing Alternatives

Obtaining funding for undeveloped property might be more difficult than for developed sites.

Most lenders see undeveloped property as a riskier investment, according to Premier Property Buyers owner Eric Nerhood, and are more likely to approve financing if you have imminent intentions to construct a house. If that’s the case, you may expect to make a down payment of 15 to 25%, or up to 50% if you don’t have any development designs.

Here are some financing possibilities for a land purchase:

A construction-to-permanent (CP) loan is a loan that is used to convert a building into a permanent structure. So-called “combined construction loans” allow buyers to fund both the land purchase and the home construction together. A smaller down payment, lower interest rate, and availability by most lenders make this the most popular financing option. Before qualifying for a CP loan, you will almost always require a licensed contractor and building plans. The greatest length of time you may wait to start building is usually specified by the lender.

Loan on a piece of property. Lot loans enable you to finance the acquisition of land without having to build on it right now. Most lenders, according to Hedge, don’t give lot loans since they’re riskier than building loans. Lot loans can have higher interest rates and need greater down payments.

Owner financing is available. The seller of certain FSBO homes may offer to finance the transaction directly. The amount of money needed as a down payment varies depending on the seller, but it’s usually (though not always) less than traditional financing. However, interest rates are frequently higher.

There’s also the no-financing option of paying cash. This also makes it simpler to get construction finance when you do build, according to Hedge, since the land equity may be used as a down payment.

Make an Offer

You must make a formal offer to the seller when you have found a desired home. Working with a real estate agent creates and files the necessary documents, including the Bid Offer form. McGuire advocates consulting a real estate lawyer if you aren’t using a real estate agent to assist you develop contractual terms and documents.

An agent or attorney may also advise you on the criteria (contingencies) that must be satisfy before the transaction can be complete. A contingency that specifies the time frame in which due diligence must be complete is frequently included. A 30-day to 90-day span is typical.

Extensive research

A thorough evaluation of a property is required to ensure that the site is suited for your particular requirements. The following are Hedge and Bond’s recommendations:

Inquire about the seller’s documentation. You should ask for any documentation related to the property’s covenants, conditions, and restrictions (CC&Rs). CC&Rs are rules that govern what you can and can’t do on your land and are usually enforced by Homeowners Associations (HOAs). Specific CC&Rs may differ. They may impose restrictions on paint colors, housing kinds and sizes, and the ability to have poultry or animals in your yard.

Search for a title. A title search examines the history of public documents, such as deeds, tax records, and financial transactions. In essence, a title check ensures that the seller is legally able to transfer the property to you. Liens and easements are two potential issues that a title search might reveal (the right for a third-party to use the land).

Verify the zoning. The zoning classification of a lot will determine what the property may be use for and what kind of buildings can be erect on it. It’s crucial to check with the local Zoning and Planning Office to ensure the property is classified for residential use; if the site is zoned for commercial use, you may not be permitted to build a main house. “I see a lot of individuals purchasing property and then discovering they can’t construct what they want because of zoning constraints,” Bond adds.

Conduct a soil analysis. If you don’t have access to public sewers, you’ll need to evaluate percolation rates before installing a septic system. Other soil tests assess the soil’s ability to support a foundation and its lead and arsenic content.

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