Now, buying a piece of land isn't something you'd call an easy thing to do. Especially if you don't know what you're getting yourself into. That's precisely why we've decided to talk about this topic today. We'll introduce you to a little guide on negotiating a land deal in the article you're about to browse. We're sure you'll make it through the process without much hassle by using the following info. Even if you're that keen on negotiating, there's a good chance you'll still make it out alive and well with some money left in your wallet, too.
A brief introduction
Experts note that the first step you'll want to take when negotiating a (fair) land deal is to ensure that the purchase is an entirely rational, not an emotional decision. Let's compare this with the purchase of a car. For instance, are you keen on buying a new vehicle without knowing exactly what you're planning to do with it, what's the price you're willing to pay for it, and, of course, what's the average sum for the vehicle you're potentially planning to buy? We reckon your answer is: well, nope. Still, one can imagine that folks go into a car dealership and walk out with a paper that says they own a car they can't afford. That mistake is often made because some people bring emotion into the game. The buyer (yourself) should be cold-blooded and rational.
Now that we've got that one cleared up let's see that guide on negotiating a land deal
When negotiating a land deal, one needs to be rational, not emotional.
#1 What is it that you want?
First things first, before you do any negotiating, you'll want to ask yourself exactly what you are trying to achieve with the upcoming land deal. As in life, it's always best you know what you want. How you'll do this? Well, compare your so-called wants with your needs (once you think about them, you'll notice that the two tend to be pretty different). Simple as that.
#2 Review the land
The key is to review the land and lower the price based on your observations. As we're sure you know, the asking price might not be the one you'll pay in the end. Anyway, once you're reviewing the property, make sure you take a closer look at the vesting deed (you can find it in the county clerk's office) and the appraisal, experts say. Real estate property interests are typically transferred by a deed. And sometimes, folks sell or transfer particular interests in a real estate property. That's why you'll want to check the deed and scan if any rights have been granted to use the property in question. Both the seller and the buyer can order an appraisal.
Additionally, you might want to request a list of similar properties that have sold in the area recently and compare their prices with the price you got from the sellers. Just so you're sure that you're buying the property for a reasonable sum
By reviewing the property you're planning to buy and the surrounding land, you'll ensure you get a reasonable price.
#3 Grab a copy of covenants and restrictions
In ideal circumstances, folks will want to seek a professional (a real estate agent or a real estate attorney) to help them find out everything about the restrictive covenants on the property. In other words: you, as a buyer, want to know what you can and can't build on the property. Also, find everything there's to know about zoning ordinances and regulations that will detail how you can use the property. Imagine that the property you're planning to buy is zoned for an office building (just an example), and you're planning to build a skate park or something. So, make sure you don't find that out once you've already bought the land.
Also, these zoning regulations will usually limit the height of everything you're planning to build on the land! Some of the rules might be absurd and time-consuming, but they must be followed.
We suggest you inquire about all the rules, limits, and restrictions before moving into the property. Before you contact professional movers such as nwmoving.com and have them transfer all of your belongings, make sure that the property fits your needs. Otherwise, you might find yourself on yet another journey, moving out of a property as quickly as you got there.
#4 Calculate the costs
The next item in this guide on how to successfully negotiate a land deal is concerned with you calculating all the costs of bringing up the land to a condition you'll find appealing. We're talking about the costs of building the required objects, the cost of acquiring the land, and the cost of marking the place to the folks that will want to use it (if you have a fresh business strategy). Oh, and don't forget to throw your potential earnings into the picture, too.
Don't forget to calculate all the costs you'll have to cover to achieve your plan
#5 Make a fair offer
Of course, the last but not the least thing in this guide on negotiating a land deal is concerned with making a fair offer that will satisfy both the seller and yourself. However, one shouldn't think this final phase is easy. It'll probably remind you of a table tennis game, the whole back-and-forth process with the seller (offers and counter-offers). You'll, of course, have some data to back up your price. It's everything we've mentioned above. Put the info on the table, and don't waste time playing silly little games. You'll notice soon enough who's in charge (here's a hint: it's you!)!
The bottom line
Alright, so that's it for this little guide on negotiating a land deal. Now you're well aware of the strategies you'll have to implement to avoid feeling robbed or overpowered. It's fairly simple: obtain the data, come up with a fair price, and there's no chance you won't succeed unless you're dealing with a pretty stubborn seller, which is, unfortunately, not a scenario that will somehow surprise you!