LAND CONTRACTS – September 2007

Land Contracts – Clean Up Your Act!

“Buy  Land with a Clean Land Contract To Impress Sellers”

Remember how your Mom always told you to “clean up before dinner”,  or maybe as a teenager to “clean up your act”?  If you’re considering a land purchase, it’s also wise advice.  Here’s why:

If you’ve been looking for land over the past year, you’ve probably noticed that land prices shot up to stratospheric levels.  Because prices were high, and buyers more cautious, a slowdown in sales resulted.  During this period, another group of buyers emerged – developers from out-of-state.

Members of this group have a different method for approaching property owners.  They often offered full price, and then added so many “ifs, buts, and wherefores” (a.k.a. “contingencies”) to their offer that property owners were taken aback.

While “full-price” was an appealing (and often accepted) aspect of  those offers, the cluttered nature of the purchase contracts resulted in many months of delays, frustration, and failed contracts.  In other words, while full price sounded great, Sellers didn’t realize that the contingencies were the eventual “deal-breaker”.  Nevertheless, the property owners learned quickly to avoid offers that contained contingencies.

OK – so now it’s a year later, and property owners are a year smarter.  Enter the “clean” purchase offer!

Property owners learned that a serious, motivated buyer, one who actually plans to make a purchase, will make a “clean” offer.  Buyers who just want to tie up a property in order to “flip” it for a quick profit insert contingencies.

So -  here’s the lesson for this month.  If you have considered buying a large land tract, it is vitally important that you approach Sellers in a straightforward manner.  Buyers respect and appreciate a buyer who makes a firm and direct offer, complete with a substantial earnest money deposit, and no fancy qualifying language to muddy up the transaction.

Over the past year, property owners have become “older, but wiser”.  They recognize a clean, serious offer, and avoid the rest.

Thus, when you are really ready to make a purchase, it is wise to demonstrate your commitment by structuring an offer that is easy to understand, offers fair value for the property, and is backed up by the financial ability to complete the sale.

Paul Christian Breden
Managing Broker/Owner

After looking around on our site, please call 800-849-9225 or Email: Paul Christian Breden for more information.  We will help you locate a property that fits your price requirements, and explain available financing sources.

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