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Buying Land- Not Using a Realtor?
I bought my land 8 yrs ago. My neighbor has an easement through mine to get to his land locked 40 acres (just raw land). He’s only hunts 3-4 days a year. I’ve told him in the past that to let me know if he ever wanted to sell it. The hunting hasn’t been the best the last few years and he’s (and me) getting older. I’m going to ask him if he wants to sell his land. I don’t know the do’s and don’ts of buying land without a realtor. I don’t want the added expense of a realtor but I do want to protect my interests too.
What’s your experiences of buying land without a realtor?
I have done it a few times. An attorney can help protect your interests and prepare the transfer documents
I’ve done it a bunch. I generally work out the details with the buyer or seller and then have it all contingent on my attorneys review and approval. I don’t like working with realtors in general.
If you're buying don't use a quitclaim deed, very bad idea. Hire an attorney and get title insurance, which will require a warranty deed of some kind. If you are confident in what the land is worth, go for it. If you are not confident in what its worth, hire one of us appraisers to give you an idea of what a fair price is. I've seen it happen both ways, either the seller or buyer gets hosed with no broker and no appraiser. If you don't want to pay an appraiser, at least hire a good broker to give you whats called a brokers opinion of value.
Make him an offer, base it off current values. Come to basic term and the have a real estate Attorney draw you up a contract and then take it from there. Most brokers contracts are flat horrible or they use a template. Nothing that the attorney that is doing your closing cant do easy enough.
Do it without the realtor. You'll still use a lawyer anyways, and they're the ones the really look after your interests anyways. Done a number of real estate deals without a realtor. On a piece of vacant land like that there aren't really many things to look at anyways.
You may need to have survey work done, and of course you and the seller need to agree on a price. Then get your lawyer to write up an instrument. The surveyor and lawyer can fill you in on the local filing process. Not much to it. No need for a realtor.
After the seller and I agree to a price, I go to a title company and get a boiler plate contract and fill in all the pertinent details - legal description and agreed upon price. Title company does a title search and provides insurance. Didn’t use a realtor or attorney.
Title company search and insurance protects you. Taxes and debts get paid. A right of way is a step more complex than an outright land buy. Title company should let you know if any other parties have access through your land. Your selling point is that he does not have to pay 5% to a realtor.
You guys sure are good at spending other people’s money
I`m not an attorney but I did stay in a Holiday Inn Express last night. Personally I would do as Blacktail Bob.....
All you get with a quitclaim deed is whatever interest the person signing it has in the property, maybe none. If they have already done the same thing prior to signing the deed to you, you are completely SOL. So, I guess if you can afford to completely throw away whatever you're paying for the property, you'd be in fine shape.
That doesn’t even begin to address everything else that can and will go wrong as it relates to legal issues with the property, regarding access, easements, encroachments, utilities, rights-of-way, you name it. There is one born every day, so if you think its a good idea to buy real estate without legal representation and title insurance, have at it. I know I own several million dollars worth of real estate and none of it was bought via a quitclaim deed without title insurance and/or legal representation.
I am a real estate broker of 22 years. With a realtor you would be covered under their E&O insurance. If you just want to buy it without hiring a realtor get an attorney to cover your ass. Check for any and all easements and get title insurance. Quit Claim won’t do it. Have the title company close and record your transaction. Give yourself enough time to do your due dillagence.
The title company will be your biggest asset to all parties involved in this case. Don't know if your state requires attorney involvement (varies state by state) but wouldn't hurt to have one involved. For a few hundred, you get a professional to double check everything. Is this an all cash sale or financed? If financed an appraisal will be done. If all cash, an appraisal could be money well spent.
Of course a title company is required.
QCDs are/can be used when parties are related or know each other. The property value in this situation is only what the buyer is willing to spend on this sort of transaction.
The OP wanted ways to buy land without a realtor. It can be done.
this is the worst place to get legal advice. only worst for medical advice
Realtors charge 20%. They offer no protection and many are so dumb to what they are selling it is an insult. Only an attorney can do what you need done.
Agree on terms with the seller. Tell him you will hire a lawyer. Hire a lawyer. You don’t need a realtor.
WV, I just sold a place and the standard % in Texas is 6%. I would not attempt to sell without a realtor, but buying raw land might be a different matter. I'd still use an attorney though.
Some bad advice on here. Use an attorney. Don’t be penny wise and pound foolish.
Yes, I am an attorney.
What is the size of the transaction?
Doing something on the cheap enough times will bite you in the rear eventually. The reason real estate attorneys exist is because someone smart and wise still got bit in the rear on a prior deal.
If that chunk of land is more than $10,000 then I am not doing QCD. I know how hard I worked as a kid to put $10,000 in my pocket and am not about to roll the dice on much more than that. Well, I might if my long-term plan is to donate both land chunks to charity.
Quit claim deed says the seller doesn't even warrant they own it. If your a buyer, you wouldn't want that, would you?
Hec I'll sell it to you with a quit claim deed, how much are you offering?
drycreek, I should have said a realtor is going to cost the buyer 20%. Their service charge is not that high. Bad wording. That happens a lot when I'm setting in the cab of a log loader waiting on a truck to get unstrapped. :^)
My buddies who are realtors service charge is 6% as well.
Hire an attorney that deals with real estate matters,not just an attorney.Many wouldn’t/don’t know much about real estate transactions.
Glunker told you right. Just deal with the title company they will do and be responsible for clearing the title.
I've sold several of my own houses, and we used a buy/sell agreement from staples or some such place and paid a couple hundred bucks to the title company. Done deal.
I've had realtors offer to finish the deal once we had a buy/sell for 1%, all they would have done was take the buy/sell to the title company. Around here that's where you go to complete your transaction anyway.
No need for a lawyer, no need for a realtor. Just talk to the title company. They will tell you things straight. And FYI usually the seller is the one who needs to set things up with them.
My son-in-law just sold his property next to mine and move to another state. Property surveys were done and are correct. In the process of deed transfers mistakes were made starting with the realtor's contract with the seller/buyer. Further compounding the issue, the bank that provided the mortgage to the buyer failed to 'less and except' the required acreage with respect to the realtor's contract. Brought all of this to the bank's attention as they must correct warranty deeds and mortgage documents. Needless to say, my lawyer will collect compensation for me as their errors deprive me of rightful property that has value to me.
I had the roadside surveyed before I bought my land. I’m glad I did. If I would of the seller ‘property line’ I would have been screwed. I had the rest surveyed a few years later. So I know where three corners of the property is. I should be able to get close on the fourth corner. It’s 40 acres.
A survey will show you where the corners are, but the main purpose is to help insure that the correct, legal, properly-worded description of the parcel(s) is on your deed.
Real estate attorney and a survey are a must! Saves you the paperwork and leg work
We have purchased several tracts from neighbors but always sought the advice of my uncle (who was vice president of commercial loans for a large bank). He told us to ALWAYS get a title search and title insurance policy. Let the title company know up front that they will be carrying the policy and that way you will get a more thorough title search up front. Also, a good Real Estate attorney to facilitate the transaction. After he told us some if the horror stories he's seen over the years, we wouldn't even consider a land transaction without doing the above!
I sold real estate for a while, a broker (who is not necessarily a realtor...) helps more when you're looking to sell or buy and don't already have a property lined up. For your situation you don't need one, save the money. But, there will be some transactional costs so discuss with the seller ahead of time who will cover those, and depending on how bad you want the land you may just have to suck it up and pay for all of them. Find a good real estate attorney to write up the contract, a title company to handle the closing and title insurance, and you'll be fine. I'd strongly suggest having an appraisal and a proper survey done as well. Good luck, hope it works out for you.
I am fortunate the survey/legal descriptions are accurate and the reality contract (a legal doc here) is accurate. The fault lies with the mortgage grantor to the buyer. Not very much land...7 acres... but has an appraised value of 23-25,000 to me. Since I did their 'legal' work for them, I feel it only fair to ask for compensation.
What would one expect to pay for a Broker's Opinion of Value?
Also, how do you protect against the broker sniping the deal for themselves?
Not all brokers are created equal. Like appraisers, there is a wide range of experience and skill levels. Unless you know of someone personally, I would ask around. You might call an appraiser or two in your area and find out what an actual appraisal would cost. Ask the appraiser who they might recommend for a broker knowledgeable in the area for the property type. Where I work, I would expect to see the fee for a BOV in the range of 15% to 20% of an appraisal fee. If you find a well qualified broker with experience in the area, I would have no issue with depending upon their opinion.
I'm a Realtor, protect yourself and pay a Realtor. This is we do and know the ins and outs of a sale. We can give a fair fair market value, work to close any congencies , work to get your best deal, and ensure that all is ready and legal for closing, etc. We cover the footwork from listing to closing. We have Title companies involved to do title search and record the deed. and an attorney involved to write the deed. Go with out one,You'll be paying attorney fees by the hour;hire a forester to determine the timber value, by the hour and this timber cruisers market analysis, although is the most accurate won't do squat to satisfy the lender's requirements. We as Realtors take the listing,market the property, bring buyers together, negotiate the price and other details. If yo u have a private sale already in the works, we work to ensure that you as a client are being treated fairly , How many land deals go bad or sour when one deals directly with a land owner?, easements written and verbal, paying above fair market value? This what we do," we watch out for our client". . In Wisconsin most listings are 6 % but this fee will vary. If you have the buyer already, most agents will do the paper work for a low fee . I sure wouldn't ask for legal advise, medical or other professional advise from a online blog; get a professional.
My neighbor saved me the trouble of asking him if he wanted to sell. Out of the blue, he called me a couple of months ago and said that he was going to sell. He wanted to know if I was interested in buying it before they go to a realtor. I hired a local real estate attorney that I trust. The papers have been signed and money has been paid. No realtor was involved. Thanks everyone for your help!
So many people think they need a realtor to make that kind of transaction - but you figured it out. Congratulations!
As Blacktail Bob said, save on any blowback.
Agree on a price. Get a lawyer to draw up the purchase and sales agreement. Both sign the agreement. Transfer the funds. That’s how I did it. Try to use a lawyer that has real estate experience.
Congrats on your purchase, Hunt98!
Best way to go around here is for buyer and seller to agree then both go to local abstractor, make up a short contract for a few hundred and all is taken care of. Never have used a realtor and don't intend to. just people trying to make big bucks selling stuff they don't own and have no investment in.
My experience buying land without a realtor has been good. Many times.
Not sure what “raw land” is but assume it is forested to an extent. If you do purchase it, try to get your timber basis recorded. There are ways to determine basis later but it can help with more accurate taxes paid on future timber harvests.
Congrats on the purchase! We've purchased a few parcels recently without a realtor. A good local attorney makes it easy and it sounds like you found one.
A title company can do it all without either party paying for an attorney. The funds go into escrow while the title is searched and transferred. For hundreds instead of thousands of dollars.
Congrats! Did your attorney mention anything about the ‘easement’?In most situations if you took title in the same name as your original piece it should ‘merge’ and no longer exist. Nothing critical now but may have to be clarified if you sell all or part in the future.
Congrats Hunt98! I've done 4 deals without a realtor through business and personal and 1 purchase and 2 leases with a realtor. Without is the way to go when you can do it for sure.
I used to watch CNN for laughs, but now I just scroll Bowsite and read all the expert advice!