Land buy questions, Please help!
S.Unger
<Jean-Paul Sar...@existentialism.com> wrote in message
news:3a3d0a5d8...@news.kafka.cz...
> Jean-Paul Sartre philosophied:
>
> Looking at parcels, this weekend. Need to know how
> this works.
>
You need a real estate lawyer in your corner. Either that or a buyer's
agent.
There are many, many ways to get ripped off buying raw land. And the local
old boys will see you coming from a mile away with that land hunger in your
eyes. Only a good local lawyer or dedicated real estate person will be able
to sort it out for you. Unless you just enjoy taking big risks.
John Gilmer
<Jean-Paul Sar...@existentialism.com> wrote in message
news:3a3d0a5d8...@news.kafka.cz...
> Jean-Paul Sartre philosophied:
>
> Looking at parcels, this weekend. Need to know how
> this works.
>
> "purchase offer"? Do I have to put any "binder" $$$
> down, at this time? Would this be done, after the PO is
> accepted, by the seller?
In theory, a sales contract cannot actually be used to compell someone to
sell a property. If someone backs out of the deal, the other side has to
demonstrate damages to collect.
What all this means is that most of the stuff before closing is actually
quite flexible.
ASSuming you go through a licensed real estate agent and your state has
funds to guarantee his basic honesty, putting a LOT of money down as a
"binder" is good bargaining phychology. You write a check (that is good)
and, typically, the check is cashed and put in a special account as soon as
the owner agress to the contract.
If you place $10 k on the table, you are taken seriously when you buy most
residential property (unless you are in the $400 K up range). You can ask
for all kinds of stuff to be paid by the present owner and may well get it.
The sales contract will have to be written such that if you land meets
certain OBJECTIVE criteria, you will go on to closing. You can spell out
what happens to your money if you don't close where all your requirements
have been met.
You place reasonable time limits, of course.
Many land sales are owner financed. The owner is selling because he wants
the money more than the land. He isn't going to pay for perk tests or well
drilling unless he is certain that a positive result will result in a sale.
If the owner isn't sure that his site will perk or produce water, he would
not agree to make that a part of the sales contract.
If you want the land to build a home you make all offers contingent upon
successful perk and water. If YOU pay for the well and perk test and it
doesn't perk or there isn't any cheap water, YOU are out of money and you
still don't have a place to build.
Now there are folks who make it their business to buy (or at least option)
land, do some well drilling and perk tests, and sell the land to folks like
you who NEED 100% guarantees. These people are called "developers."
Some land owners become developers and for your purposes, that is whom you
want to deal with.
>
> 2.Perk test & well drill contingencies are reccomended, right?
> What if you don't have the $$$ left, for perk test & drilling?
> Or worse, what if the property fails the perk test or water can't
> be found? You're out the $$$ for the test & drill????
That's right! That's why you don't pay for such tests. The present owner
pays for such things.
>
> 3. Who pays for title search, Broker fees & etc. Buyer or seller?
Whoever agrees to as spelled out in the sales contract. Sometimes local
custom has one party or the other pay for some particual item and it might
not be spelled out. Since the owner will be getting your money, he will
have the CASH to pay for this stuff so it makes sense for him to pay for
everything (including the lawyer or title agent.) You can specify that any
money you pay for these items (up to certain limits) come out of your down
payment so that you don't run out of cash on the day of closing.
Things like title insurance (and the title search) are usually paid for by
the buyer but if you word the contract right, it will just come out of the
down payment.
The broker is paid by the seller unless you sign a contract saying you will
pay the broker to find you a property (DON'T DO THIS.) You may hear
about things like a "buyer's broker." Don't kid yourself, the broker
doesn't work for the buyer or the seller. The broker works for himself.
You are better off if you take the position that the broker represents the
seller's interest and act accordingly.
Janet Baraclough
from Jean-Paul Sar...@existentialism.com contains these words:
> Jean-Paul Sartre philosophied:
> Looking at parcels, this weekend. Need to know how
> this works.
I took a look at your message headers.
I take it you're looking at property under bridges, then?
Janet.
Tralrdr
>
>Looking at parcels, this weekend. Need to know how
>this works.
>
>"purchase offer"? Do I have to put any "binder" $$$
>down, at this time? Would this be done, after the PO is
>accepted, by the seller?
>
Your "Binder" $$ is called Earnest Money in this neck of the woods, and goes
into an Escrow account to be held usually by the Listing Agent (real estate
agent) unless you are making an offer directly to the owner, and not using an
Agent. It is a good faith deposit which says " I am interested in your
property and please look at my offer" which follows:
I am depositing the following amount (500 or 1000$ or ?) into an account to go
against this offer on your interests in the following Real Estate: (legal
description should follow). Purchase price (whatever you wish to offer) and
terms which will include inspection deadlines (the time you have to complete
the perk test and well inspection or well itself) Inspection Objection
deadline, title searches, closing date, amount to be financed either privately
or by institution etc and some other things that are too much to include here.
(appraisals, loan contingencies, survey matters etc)
>2.Perk test & well drill contingencies are reccomended, right?
ON raw land? Not usually. Not many sellers will let you go on to their land,
dig a hole for a perk test then abandon it if it doesn't meet your needs.
Wells? Forget it! If there is an existing well, yea, sure, get it tested,
definitely, see the well permit, the final gpm on the well, and get someone out
there to test it at YOUR expense. But drill a well? ha ha ha noway!
You CAN call the local well drillin boyz and ask them what the local wells are
commin in at....they can pull up the state info on your neighbors but you
better know the neighborhood.
>What if you don't have the $$$ left, for perk test & drilling?
Then go borrow it or earn it or you are sol. wah!
>Or worse, what if the property fails the perk test or water can't
>be found? You're out the $$$ for the test & drill????
>
What kinda ground are you talkin about here? Clay?
Ask the neighbors for godsake, see what they hadda do...some may have
completely different dirt than your prospective property, but usually dirt
tends to run in wide bands around the earth, and you can sorta figure out what
yer getting into if you ask around. Or talk to the local engineer....he can
tell you if he has engineered any dirt in that area for septic perks or footers
and can give ya the skinny. As far as H2O goes, its where you find it. Ask
around.
>3. Who pays for title search, Broker fees & etc. Buyer or seller?
>
This depends on the contract, typically, title searches, broker fees are
sellers responsibility.....unless you come in with a seriously lowball figure,
in which case they may be split. Other fees, tax certifications, misc closing
document fees, document preparation fees can be split which is usual in this
neck of the woods.
>Any other advice, I won't turn up in a google search?
>
Start talking to some local Real Estate professionals and get a feel for what
they are like...they can help you out as long as yer paying attention and don't
drift off into outer space. Sure, some are rip off artists, but that happens
in every profession, but many do their best to help inform the buyer where
exactly the bear is shitting in the woods.
And go to several, take the time to do this, find one you feel you trust, get
maps of the area, and find out what is up in the local scene on the property as
far as wells, septics etc goes. You can also talk to local septic installers
about the local scene.
Its a buyer beware situation when you buy land, it sells AS IS. Be informed,
be intelligent, make informed decisions, there will normally be NO guarantees
and NO spitbacks, and if you make an offer and put earnest money up for it, and
don't like some things which come up either in the inspection period or title
search, you can request these things be fixed(or use a contingency) or you can
kill the deal and get your earnest $$ back. But an intelligent seller won't
accept an offer contingent on a perk test or well (raw land) and will counter
to tell you where to get off.
IF you do your inspections and everything is hunky dory and yer ok with title
work, and don't close the deal cause you don't have the geddes then you are OUT
the earnest $$. That goes to the seller who should split it with the RE agent
who wrote the contract for you, ordered the title work, checked out things to
make sure its hunky dory, told you about inspection deadlines and generally
wasted his or her time helping your sorry ass out when you knew you didn't have
the $$ in the first place to purchase the property (and the RE agent didnt' get
any proof of funds cause we are a trusting lot dammit) .
Plus hanging up a possible bonafide sale of the property up for who knows how
long while you play around with inspections etc only not to close. But I
digress.
Get informed.
And good luck, buy land, they ain't making any more of it. (thank you
WillRogers)
Carrie N Miller
>All help greatly appreciated!
>
>J.P.S.
'Captain' Kirk DeHaan
I only put down $500 on a $50k piece of property. Called good faith
money. If you back out you lose it. Don't put done $10k unless
you're willing to lose it.
>
>You place reasonable time limits, of course.
>
>Many land sales are owner financed. The owner is selling because he wants
>the money more than the land. He isn't going to pay for perk tests or well
>drilling unless he is certain that a positive result will result in a sale.
Required this on one piece of property before putting down money.
They had a well and septic. The well ended up being dry and was too
close to the septic. Moot point since it was dry. Deal off.
>
>If the owner isn't sure that his site will perk or produce water, he would
>not agree to make that a part of the sales contract.
>
One big point. Look around awhile. We spent two months and looked at
50-60 properties untile we found "home".
Kirk
A non hyphenated American.
Larry Caldwell
Sar...@existentialism.com writes:
> Jean-Paul Sartre philosophied:
There isn't much in this world more existential than buying land.
> Looking at parcels, this weekend. Need to know how
> this works.
> 1. I like one or more parcels, I then make an official
> "purchase offer"? Do I have to put any "binder" $$$
> down, at this time? Would this be done, after the PO is
> accepted, by the seller?
Yep, you put down earnest money to prove it is a serious offer. If the
seller does not accept your offer, you get the money back.
> 2.Perk test & well drill contingencies are reccomended, right?
> What if you don't have the $$$ left, for perk test & drilling?
> Or worse, what if the property fails the perk test or water can't
> be found? You're out the $$$ for the test & drill????
Yep, you are screwed, and the property is worth less than it was before
you tested. It's best to get out there with a shovel and see what is
under the ground before you make your offer. Yes, you can justifiably
dig a hole or two, and toss a bucket of water into them. Look for 3' of
soil with no signs that it has been placed there as fill (uniform texture
and color). Finding water depends on the locale. Ask the neighbors
about wells.
> 3. Who pays for title search, Broker fees & etc. Buyer or seller?
You pay for your own title insurance. The seller pays the agent out of
the money you give them. FSBO is a real good idea if you can come to a
good agreement. Typically you share closing costs, but that varies.
> Any other advice, I won't turn up in a google search?
Get a lawyer.
Dave Green
"Tralrdr" <tra...@aol.com> wrote
>
> What kinda ground are you talkin about here? Clay?
> Ask the neighbors for godsake, see what they hadda do...some may have
> completely different dirt than your prospective property, but usually dirt
> tends to run in wide bands around the earth, and you can sorta figure out
Or better yet, stop at the county soil conservation office and get the
soil map book. They're free, courtesy of Uncle Sam, and will tell you a
tremendous amount of detail about the soil and the underlying geology, if
you learn to understand them, including whether it will perk.
Sylvia Steiger
> offer"? Do I have to put any "binder" $$$ down, at this time?
> Would this be done, after the PO is accepted, by the seller?
You left out one crucial piece of information. Are you looking at
"listed" properties where a real estate agent is acting as agent for the
owner? Or are you looking at FSBO (For Sale By Owner) properties? Any
listed properties, the agent will answer your questions and have the PO
forms, but of course biased towards getting the best deal for the seller
(that increases his/her commission). They are, however, state licensed
and required to answer truthfully to the best of their knowledge (they
can still be flat-out wrong, of course). Putting down some binder is
usual, could be as little as $100 but the seller might have trouble
taking you seriously with that small amount.
Dealing with an individual, the sky is the limit. We were looking at a
FSBO parcel that there was another seriously interested person; she was
going to pay cash and we needed owner financing. I offered a $1000
NON-refundable deposit while we got the rest of the down payment out of
DH's 401k, which motivated the seller to give the other person limited
time to put up or shut up. She decided to pass and we own it now. ;)
Seller and I negotiated purchase offer terms and mortgage terms, it
turned out we considered different areas critical so he was willing to
grant what I needed and I was willing to grant what he needed. We're in
the second year of an 8-year mortgage now and both quite happy. (It has
been my experience that if two people negotiate in good faith, an
agreement is usually possible.)
> 2.Perk test & well drill contingencies are reccomended, right? What
> if you don't have the $$$ left, for perk test & drilling? Or worse,
> what if the property fails the perk test or water can't be found?
> You're out the $$$ for the test & drill????
Depends. None of the parcels we looked at over a year-and-a-half land
search were open to offers with those contingencies, or maybe they *are*
common around here and no one mentioned it to me. But how much land are
you talking about? The parcels we looked at were 5-40 acres, and it was
easy enough to call the state water engineer's office and find out if
wells had been successfully drilled on nearby land and at what depths.
And with that much land in Wyoming, I wasn't worried about not being
able to find a place to put a septic system -- in rocky Maine, for
instance, that might well be a problem. Or even on a 1/4-acre lot here
in Wyoming -- you wouldn't have alternative spots in mind if your first
choice didn't pan out. Who pays for it -- depends on your offer. Most
sellers around here wouldn't be willing to lay out more money on land
they're trying to sell -- you want the tests you pay for them, and if
the results cause the deal to be cancelled, you're out the bucks. And
while someone suggested paying for that out of your down payment, *I*
don't know of any sales where the companies doing the testing were
willing to wait for closing to get paid.
> 3. Who pays for title search, Broker fees & etc. Buyer or seller?
Title search is usually a seller expense here, ditto usual broker fees.
(I also included no title insurance expense in our offer, I think it's
a big ripoff because it ONLY covers the actual purchase price anyway,
not improvements or appreciation. I do my own title searches and in
fact found an unreleased mortgage on the land we bought, needless to say
seller and I agreed that clear title was a condition of sale and I even
researched and found a mortgage release form that the mortgage holder
willingly signed and returned.) I agree about the buyer's broker being
a waste of money. I always went to the trouble to finding and working
with the actual listing agent, since they were most likely to know what
the seller actually wanted to get out of the sale.
> Any other advice, I won't turn up in a google search?
Do NOT rush into anything. While I'm hesitant to use the term "always,"
I truly think any seller or agent who tries to pressure you into putting
money down and signing a contract NOW is pulling a fast one and you can
get a better deal or better land elsewhere. And we prayed all during
our land search, which is one reason I think we now own such a beautiful
piece of land. (I have photos on my web page, below.)
--
Sylvia Steiger RN BS
Remove "removethis" from address to reply
http://www.SteigerFamily.com
Cheyenne WY, USDA zone 5a, Sunset zone 1a
Home of the Wyoming Wind Festival, January 1-December 31!
Steve Dunlop
permanent, or at least long, but what is permanent anyway, eh?
I suppose I'm going to have to turn my troll detector down. Had
the thing set on 11 lately and it's been worse than a cheap radar
detector.
Anyway, I offer herewith my advice based on having bought and
sold only a few pieces of land.
*** 1. There are no rules on how you negotiate, despite what the
*** brokers, sellers, attorneys, etc. might tell you.
They will usually want you to put everything in writing and
put down earnest money right at the beginning so that you'll
be taken seriously.
I don't do this. I do one of two things. Either negotiate verbally,
or from a term sheet. That way I don't waste my time on paperwork
for a deal that will never fly. Once I get the deal lined up in
principle, the paperwork follows.
This, IMO, is the way to go especially in a buyers market, because
you can make a lot more offers to different sellers without getting
to much time invested in the process. Plus, it allows you to get
the deal straight in everyone's head before you start putting
everything on paper and crossing out, recrossing out, and
rewriting stuff as part of the process.
It doesn't work if properties are turning in days, because the
property will get sold out from under you. Sometimes sellers
won't take this approach seriously, so you either do it their
way or walk, with no harm done either way.
Agents as a rule don't like to do it this way, so sometimes
you have to find the right agent.
*** 2. Contingencies
In most parts of the country, water wells can be drilled.
Period. It's just a matter of how deep you go, and you
have to pay by the foot.
You can either take your chances and pay the well driller
yourself, or make the seller put in the well before you buy.
Sometimes they will, often not, as they are afraid of spending
the money and then having the sale fall apart.
Perk tests are cheap enough that you can do them as a
contingency. Ordinarily I would pay for them if I were
buying as the cost is small enough that it's not worth
negotiating for.
*** 3. Fees
Varies from state to state, and is subject to negotiation,
but generally the seller pays the bulk of these expenses.
*** 4. Everything else
Buying unimproved land has more pitfalls than buying a
house, so be careful, watch the financing, zoning, and anything
else that could prevent you from using the property the way
you want. Be very careful of seller financing as some such
agreements favor the seller unreasonably.
Good luck
Steve
<Jean-Paul Sar...@existentialism.com> wrote in message news:3a3d0a5d8...@news.kafka.cz...
> Jean-Paul Sartre philosophied:
>
> Looking at parcels, this weekend. Need to know how
> this works.
>
> 1. I like one or more parcels, I then make an official
> "purchase offer"? Do I have to put any "binder" $$$
> down, at this time? Would this be done, after the PO is
> accepted, by the seller?
>
> 2.Perk test & well drill contingencies are reccomended, right?
> What if you don't have the $$$ left, for perk test & drilling?
> Or worse, what if the property fails the perk test or water can't
> be found? You're out the $$$ for the test & drill????
>
> 3. Who pays for title search, Broker fees & etc. Buyer or seller?
>
> Any other advice, I won't turn up in a google search?
>
> All help greatly appreciated!
>
> J.P.S.
>
>
> "Live, grow stronger, Fight another day"
>
> A really old, wise, man.
Deb
<Jean-Paul Sar...@existentialism.com> wrote in message
news:3a3d0a5d8...@news.kafka.cz...
> Jean-Paul Sartre philosophied:
>
> Looking at parcels, this weekend. Need to know how
> this works.
>
> All help greatly appreciated!
>
> J.P.S.
>
>
I took the time to read all the other responses so this won't be
much help this weekend. There's only 2 things I can think to add.
1--If you are going to need to finance part of the cost of the land,
go talk to the bank or lending company. You don't really know how
expensive a place you can have until you do that. One realtor
finally took us seriously when she saw how much someone would be
willing to loan us for our property. We saw nicer places right
away. otoh -- maybe you could be just as happy in a smaller place
and would not need to spend the time looking at the things that
would be out of your reach right now.
2--I read this group way before I moved to the woods. I rarely post
because I'm too busy learning and too slow typing. But WHY oh why,
didn't I ask some of these same questions? There's lots of stuff in
this thread that would have made me do different if I'd thought of
it and known the ropes. ;>
Deb
--
(in Oregon, the pacific northWET) ;>
John Gilmer
> >
> >If you place $10 k on the table, you are taken seriously when you buy
most
> >residential property (unless you are in the $400 K up range). You can
ask
> >for all kinds of stuff to be paid by the present owner and may well get
it.
> >The sales contract will have to be written such that if you land meets
> >certain OBJECTIVE criteria, you will go on to closing. You can spell
out
> >what happens to your money if you don't close where all your requirements
> >have been met.
>
> I only put down $500 on a $50k piece of property. Called good faith
> money. If you back out you lose it. Don't put done $10k unless
> you're willing to lose it.
You can only lose if you don't live up to your part of the agreement when
the owner lives up to his part OR the agent is a crook.
If the agent turns it over to the owner or just sits on it against what is
spelled out in the contract you have good grounds to go against the agent
and his broker. In a state with reasonable laws, you will be able to put
them both out of business.
Thus, there isn't much risk to putting the money on the table unless you are
a flake.
Steve Dunlop
"John Gilmer" <gil...@crosslink.net> wrote in message
news:3d0bb22c$0$92...@dingus.crosslink.net...
>
>
> > >
> > >If you place $10 k on the table, you are taken seriously when you buy
> most
>
> > I only put down $500 on a $50k piece of property. Called good faith
> > money. If you back out you lose it. Don't put done $10k unless
> > you're willing to lose it.
>
> You can only lose if you don't live up to your part of the agreement when
> the owner lives up to his part OR the agent is a crook.
There are lots of reasons a deal can fall through due to buyer-related
problems that aren't really the buyers' fault.
Buyer loses job, buyer encounters unexpected serious health problems,
buyer can no longer come up with money because of family problems,
lawsuits, divorce, whatever. Once in a while bad things do happen
to good people.
It isn't wise to put down that kind of money. Too much risk of getting
caught being unable to close yet technically still obligated to do so.
And there isn't really any extra negotiating leverage. The seller doesn't
have anything more to lose from the deal falling apart than with a buyer
who puts down $500. I suppose some inexperienced sellers may be
impressed, but I doubt if it is worth the risks.
--
Steve
Sylvia Steiger
That's probably the smallest amount you could use and be taken
seriously. If you find a parcel that you really like and might have
other offers on it, you might want to use $1000 or higher to stand out
from the crowd. potential buyers
about upsides and downsides. But you probably want to wait until you
have a parcel or two that you're seriously interested in, to not waste
their time or yours.
> Where & how did you do this research? By necessity, We're looking at
properties 300-400 miles from here.
We were looking at property in this same county, which
> We are looking at remote, vacant woodland. 10-40 acres,
Definitely find out who regulates well drilling (state office, in
Wyoming) and septic (county, here and everywhere else I've heard of) and
spend some bucks on long-distance phone calls to those people.
Generally, they are VERY helpful and willing to talk tomade it easier.
(The parcel we bought, we actually made it to the courthouse at 10
minutes to 5 on a Friday -- by Sunday we had a deal with the seller!)
Again, if you want to do the research yourself, you'll simply have to
make it to their courthouse during normal business hours.
> Did you have a survey done, prior to closing?
Didn't need to because the property was in a ranchette subdivision, with markers at all four corners, and I'd had a copy of the plat for over a year, and gotten a list of owners from the tax department. In fact, I think I scared the seller's wife -- she answered the phone when I first called and wasn't sure of the tract number, so I asked her name and then told her it was tract 29! <g>
> I'm gonna start praying, now.
Smart move!
Sylvia Steiger
> way or walk, with no harm done either way.
John Gilmer
>
> Buyer loses job, buyer encounters unexpected serious health problems,
> buyer can no longer come up with money because of family problems,
> lawsuits, divorce, whatever. Once in a while bad things do happen
> to good people.
Well, you are talking now about very, very bad luck including bad timing.
IF any of those things were to happen a single DAY AFTER you close, the
financial consequences are about the same. In either case you are stuck
with an obligation to buy land which you can no longer aford to make the
payments on.
wmbjk
"Steve Dunlop" <dun...@bitstream.net> wrote in message
news:M1TO8.608$6a....@newsread1.prod.itd.earthlink.net...
>
> "John Gilmer" <gil...@crosslink.net> wrote
> > > >If you place $10 k on the table, you are taken seriously
> It isn't wise to put down that kind of money. Too much risk of getting
> caught being unable to close yet technically still obligated to do so.
> And there isn't really any extra negotiating leverage. The seller doesn't
> have anything more to lose from the deal falling apart than with a buyer
> who puts down $500. I suppose some inexperienced sellers may be
> impressed, but I doubt if it is worth the risks.
I disagree. A large percentage of land deals probably start out with very
small deposits. That's because most buyers want the option to back out at
very low cost if they need to, or more often just because they feel like it.
Developers have heard every excuse in the book. Their selling price, and
negotiating posture, reflect the time they waste entertaining triflers. If
you want a seller to take you more seriously than the average buyer, then
you need to act more seriously than the average buyer. One way to do that is
to put down a larger deposit.
Wayne
Johndan Johnson-Eilola
based partially on having bought property and a home out here (Hopkinton,
NY, in St. Lawrence County, last year, a farming and logging community
about halfway between Potsdam and Malone).
1. Property values are extremely low, but it's not necessary a buyer's
market. The values have more or less stabilized, and in some places are
starting to rise.
2. You didn't say what property you're considering purchasing (that is, what
township), since values vary quite a bit depending on where in a county
you're purchasing. Property in Potsdam or Canton, for example, is higher
and has higher property taxes; property in DeKalb or Nicholville will be
lower, etc. You get what you pay for in terms of services and "culture"
(Potsdam and Canton each possess both private and public universities, for
example).
3. $500 is what we put down as earnest money on our property, and no one
questioned it. Although there are exceptions, the market is also somewhat
relaxed. I don't know a lot of people who used buyers' agents nor worked
much with real estate lawyers. (We had our lawyer look at the contract, but
even he agreed that it was mostly routine and made only very minor
suggestions. I wouldn't *not* show the contract to a lawyer, but it
certainly wasn't a high pressure situation.)
4. Banks up here seem to be similarly laid back and more willing to make
allowances and help you make arrangements to close. Local banks, that is.
5. I have to say that everything seems about thirty years in the past up
here. (And I think that's a good thing, in general. Not in a rosy,
nostalgic kind of way, but in general a little more relaxed and informal
than other places I've lived. And, somewhat paradoxically, I live in an
extremely rural area but have DSL Internet service through the Nicholville
Phone Company, a small rural service. Can you beat that?)
Email me at johndan at slic.com if you want to talk about any specifics.
Jean-Paul Sar...@existentialism.com wrote:
> Jean-Paul Sartre philosophied:
>
> Looking at parcels, this weekend. Need to know how
> this works.
>
> 1. I like one or more parcels, I then make an official
> "purchase offer"? Do I have to put any "binder" $$$
> down, at this time? Would this be done, after the PO is
> accepted, by the seller?
>
> 2.Perk test & well drill contingencies are reccomended, right?
> What if you don't have the $$$ left, for perk test & drilling?
> Or worse, what if the property fails the perk test or water can't
> be found? You're out the $$$ for the test & drill????
>
> 3. Who pays for title search, Broker fees & etc. Buyer or seller?
>
> Any other advice, I won't turn up in a google search?
>
> All help greatly appreciated!
>
> J.P.S.
>
>
Steve Dunlop
unable to follow through with the closing, because, for example,
they don't have the cash, or whatever. Then they're out whatever
they put in for earnest money. If there is a loan involved, sometimes
the whole thing can be blamed on the lender and most purchase
agreements allow for the earnest money to be refunded then.
But that doesn't always work, and in any case, the buyer's
earnest money can end up being tied up for months while the
mess is sorted out.
Best to avoid the whole mess by keeping the earnest money
amounts small. As I said, there usually isn't much negotiating
benefit in putting down a great deal of earnest money.
--
Steve
"John Gilmer" <gil...@crosslink.net> wrote in message news:3d0c7071$0$10...@dingus.crosslink.net...
J.C.
at land. When I call on a parcel that is obviously
way overpriced, I get into a conversation as to
there being a possiblity the property is grossly
overpriced. The ensuing argument will include all
the reasons why this particular piece of property
is sooooo much more valuable than all that
surrounds it. Finally, I say goodbye with this.
"Okay, are you absolutely positive this property
is worth what you say it is?" "Yes I sure am"
"That's fine then, I'm the tax appraiser and I
didn't want to raise your taxes that high unless
you were sure it was justified" "Uh, oh, um, wait
just a minute, Er, uh"
"Thank you, goodbye"
"Johndan Johnson-Eilola" <joh...@johndan.com>
wrote in message
news:mu1P8.1149$Na.6...@newsfeed.slurp.net...
Sylvia Steiger
Sylvia Steiger
> benefit in putting down a great deal of earnest money.
I don't doubt that was your experience, Steve, but it seems that several
of us (including me) have experienced the contrary.
John Gilmer
>
> I don't doubt that was your experience, Steve, but it seems that several
> of us (including me) have experienced the contrary.
We put up a check for $8k when we made a high offer and the owner was greedy
and turned us down. We got our check back and next thing you know, the
owner is cutting his price. I don't think he would have done that if we
had written a check for $100.
In real estate CASH is KING. If, for example, you have a 20% downpayment
on a home, the seller KNOWS that there is not likely to be any problems in
getting a loan.
Steve Dunlop
substantial down payments. I agree that this
helps considerably. Sellers get the jitters about
the deal falling apart when the buyer is struggling
to get a 5% down payment together.
I guess others have had different experiences,
but I have found that the earnest money, if
sufficient (in the 1/2% to 1% of purchase price
range), doesn't make much difference.
Part of the thing is the pace of the market.
Buying in a sellers' market, you have to do
things the seller's way. Better to wait it out
and buy when things loosen up.
One thing we have done when buying is be
sure that the seller knows enough about our
financial situation to be comfortable. We've
done this various ways, either with a
pre-qualification letter from a bank, or informally
through the agents, or (in one case) supplying
a financial statement to the seller. There's a lot
less risk than with a big earnest money check.
Steve
"John Gilmer" <gil...@crosslink.net> wrote in message
news:3d0face8$0$17...@dingus.crosslink.net...
Sylvia Steiger
I've seen that as well. In 1976, my mother took her half of the house
money from a divorce to buy a house in Florida, about $27K. She found
one she really liked and the owner was asking $28K. She was about to
offer her whole $27K when I talked her into offering $20K -- I reminded
her there was no law against making another offer if the seller turned
this down. No contingent-on-getting-a-loan since she had cash. Turned
out seller was in a hurry and took the $20K, and she had money to make
the improvements she wanted.
Bob Guiles
unavailable to me now).
Check with the Army Corp of Engineers and the State Conservaion folks
about possible wetlands. The lawyers have the paper work for land (10.8
acres of woods in central NY) we are buying, but before I put in the
purchase offer I checked for wetlands.
In NY, there are 2 kinds of wetlands, federal and state. The boundaries
don't match (in size or contour), the state adds a 100ft restriction to
the wetland border and both have different requirements for exceptions.
The state folks had all kinds of info they could provide on the property
(topo maps, wetland boundaries, soil types, mining, oil, Indian artifacts,
bald eagle nests, etc). They couldn't have been more helpful.
Also, a competent real estate lawyer is important.
Best of luck!
Bob
Deb (deb...@yahoo.com) wrote:
: <Jean-Paul Sar...@existentialism.com> wrote in message