HUNTING LAND? CHEAP LAND? – Feb. 2006

Land Contracts – Keep Them Clean at Full Price! 

“Land Value & Land Prices  – Right for the Market!”

Are you a horse trader? Do you like to banter back and forth over a few pennies or small details? Do you dislike paying full price and get a kick out of making low offers? If so, you may be sorely disappointed this Spring if you’re planning to buy mountain land.

For the past four to six months, sellers have been asking for and receiving fair market value for their properties. They’re shying away from low offers, and hardly even considering offers less than full price. What’s more, if an offer contains special provisions that make the contract contingent upon some other event, i.e. a “due diligence” inspection period, sellers are likely to respond with a courteous but flat “No, thank you!”

So . . . what’s happening? You may not want to know, but frankly there’s a roaring sellers’ market in full swing. With few large land tracts available in the best of times, there is great competition among buyers for this limited inventory. Buyers who locate and purchase successfully tell us they came to the mountains prepared to buy, are paying full price, and making “clean” purchase offers.

First and foremost, these buyers are committed to making a purchase. They’ve thought out their preferences for land, have analyzed their finances, and shown up checkbook in hand, knowing that any delay might cost them the perfect land parcel.

Not only are these buyers offering full price, but they also recognize that property sellers respond favorably to clean, simple offers – known as a “clean” offer. This means that they offer a substantial earnest money deposit as good faith that they intend to close the transaction. That is often as much as 5-10% of the purchase price. They also offer to close the transaction in a short period of time, i.e. 30-45 days.

Land Contracts – Keep Them Clean at Full Price!

Wise buyers do not insert “weasel” clauses into the special provisions. A “weasel” clause is a condition that allows them to be excused from the contract without losing their earnest money deposit, at their option, if some vaguely specified event does not take place. Such a clause may ask the seller to allow for an extended inspection period, i.e. 90 or 120 days, or delay the closing for additional time if the next “harvest moon” is not visible.

So, is it a good time to buy land or not? Yes – but only for buyers who are motivated, have the financial ability, and are totally committed to making a purchase. If one or all are missing, there’s no sense in coming to the mountains to just “browse” around. Disappointment awaits those who do.

So . . . are you ready, willing, and able? If so, call today! You won’t be disappointed.

Best regards,

Paul Christian Breden, Broker

The purpose of Land Rush is to educate and inform you in such a way that, once you arrive here in the mountains, you’ll be prepared to make your purchase. If you haven’t already, please – before you come – take time to download our buyer’s guide – “Carolina Dreaming” – from our website. It’s short, easy to read, and will provide you with the basic information needed to make your trip a roaring success. For your free copy, go to:

www.ncmountainland.net/manualdesc.html

Ready to come to the mountains? Call us at all reasonable hours, seven days a week, at 800/849-9225. Ask for Chris or Paul and we’ll set up a time and place convenient for you. We’ll take whatever time is required to help make your land ownership dreams come true!

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