Land Sale and Acquisition
What You Need To Know About Land Sale & Acquisition
The rules of acquisition of any given property may vary from state by state; however, most follow a standard process. Before you purchase a piece of land, you have to decide your goal for the investment. Indeed, you would not want your investment to go to waste. To avoid buying your perfect property for a specific purpose, only to find out it’s zoned a different way, you should consider the risks.
In general, land sale and acquisition involves the following processes:
- The Search & Discovery
- Budget Setting
- Completing Your Due Diligence
- Appraisal & Making A Written Offer
- Negotiations Between Parties & Agreements
If all of your hard work and research has paid off and both you and the landowner want to finalize your purchase, you’ll finalize everything at the closing of the property. For your land-buying goals to be successful, it would be a great decision to ask for assistance from a commercial agent.
Take note that the negotiations between parties involve the payment. If you may not be able to purchase the land in cash outright, there are options that you can consider, such as financing. This can be beneficial in certain circumstances, but it’s best to discuss your options with your real estate agent or attorney.
While you’re at it, be sure to discuss the risks that may rise to the occasion, including zoning classification, zoning restrictions, environmental issues, access to utilities, and expenses.
What We Offer
Here at Michael Gailliot Homes, we guarantee that you will be aware of how to navigate the whole process of land acquisition. We have agents that specialize in selling land and acquisition that can skillfully assist you throughout the process. When trying to sell or buy land, the other party would want to meet to discuss something related to the property. Our land-specialized agent will help you check the property and analyze its real value. This way, you will be prepared enough when meeting with the landowner or buyer.
Our team recognizes how the various aspects of a site can impact value (location, topography, user needs, governmental rules and regulations, utility placement, etc.). In connection with this, we work closely with our clients to understand their specific needs and provide them with the best value.
In case you need assistance with land and acquisition, contact Michael Gailliot Homes at 571-485-0070 or send us a message. We’d be more than happy to assist you!
We can assume that you are going to build something on this acquired land so these are seven basic steps to take as you find yourself on your land acquisition journey. In many cases, these steps will apply for both commercial and residential construction.
7 Tips to Buying Land
What’s your motivation? As stated earlier, before you start your land acquisition figure out why you’re in the market. For most people it’s to build their dream home or build a commercial property.
Budget? The land sale team here at Michael Gailliot Homes will help you on deciding a budget but you may want to have something in mind. Because buying raw land can include several steps most other property purchases do not require, so it’s best to do a little research on your own. Talking with your construction team and getting an estimate for these costs will help you determine your budget, if you’re unsure.
Finding the land: With the help of Michael Gailliot as a real estate agent, he will help you find the right piece of land. We can come out with you to preview the land before you purchase to ensure the style and size will fit your dream home.
With the team at Michael Gailliot Homes. We can answer a lot of these questions for you. However, it’s never a bad thing to do your own due diligence. Here are some questions to consider.
Sewer or Septic? – Does the property have access to city septic? Or is the property capable of handling a septic system?
Wells – Will the land have access to city water along with sewer? Or will a well need to be installed? If so, what type of well needs to be considered, as there are different types. You also want to make sure the loan you use will allow for the well being used.
Road Access & Easements – Having easy access to a road is obviously important. If there’s no road are you willing and able to build a road to the land?
Utility Companies – Are the utility companies willing to bring electricity, Internet, and telephone out to your location? Do you have to pay a fee to have this accomplished? How does this affect your budget?
Environmental Restrictions – Knowing what environmental restrictions your land may have can impact its use. In some places owners searching for waterfront properties have to be especially careful, as these lands have a variety of strict guidelines about use and building, which can limit what you can do.
Make an Offer: Generally speaking, land will appreciate as it’s developed. Because of this, the rule of thumb is to start low and negotiate as you go along.
Close: Michael Gailliot will make sure everything is covered and that everyone involved is on the right page every step of the way. This way all parties involved can be confident with the closing of the deal.
Why Invest in Land?
Throughout history the value of land only goes in one direction – up. With the rapid development of Northern Virginia, acquiring a solid piece of land could see a significant value increase. This is great if you’re just looking to build your dream home or add to your portfolio.
What are the zoning rules and long-term plans?
Nothing worse than finding out zoning issues ruining your ideas, so before you buy land, pay a visit to the county zoning and planning office. As a land sale expert, Michael Gailliot is well aware of zoning issues and will keep you informed on what may not be the best idea. It may be important to know future plans in the area like a power plant or major highway. Have you ever driven down a major highway and wondered why anyone would build a home so close to it? Chances are they had no idea it was in the plans.
Are there any down payments required for land acquisition?
If you can’t buy the land outright – and remember, down payments are higher at 20-50% – you can consider a more traditional lender to finance the purchase. This may include higher interest rates than a standard home mortgage, and your lender could require a detailed timeline for development. A final option is owner financing, or purchasing the land through the seller. This can be beneficial in certain circumstances, but it’s best to discuss your options with your real estate attorney.
What will the taxes on the property look like?
Each county has different rules for property taxes, however if the property is already in land-use before you buy it, you could qualify for serious tax breaks.
Are the boundaries of the property clearly marked?
This is one of the most important questions to ask. If you build or start anything and it happens to be on someone else’s property you could face lawsuits. If there is any uncertainty, get a survey done.
Do you need a survey?
Whether you are buying a neighborhood, development lot, or 100 acres of raw land, you need a survey to determine if there are any issues with your lot lines. This can include unrecorded easements and encroachments, as well as actual property size.
Are there deed restrictions?
If a homeowners association governs the land, you’ll need to follow their restrictions in addition to whatever zoning rules apply. Read the Covenants, Conditions and Restrictions (CC&Rs) carefully. These documents outline what you can and can’t do with your property. If you have any questions about the CC&Rs, consult your attorney, as it’s vital that you understand everything in them.