Does anyone know if buying land has the same types of cost as buying a house? Title search, closing cost etc. We're looking at buying some property from our neighbor. She's the owner of the property as well as the realtor and broker. My husband doesn't think we need a realtor, and can deduct those cost from our offer. But I'm nervous that we'll miss those tiny things in an offer that add up to a lot. Such as having her pay closing cost.
Any advice?
As a realtor I strongly advise you to get a title policy. The cost is based on sale price so with land being cheaper than a house it shouldn't cost too much. Also get a perk test if it will have a septic system as that could run into some money if the land isn't suitable for a drain field.
You can hire a real estate lawyer instead. I would get some professional help. They deal with this every day and can save you thousands of dollars if something is amiss.
Good luck to you and yours.
She's the owner/seller - you need a realtor that will work for your best interests (the buyers) and that is not going to be her.
A thing that pops up around where I live is - people want to sell property but do not always disclose that it is a protected wetland - it severely limits what you can do with the property.
Is it in a flood plain?
The lot might be high and dry now but what do you do if it's 6 ft underwater come rainy season?
You want a title search as well as checking if there are liens and/or easements with regard to the property and a survey (I think it's required in Virginia. My sister's bought property in Connecticut without having surveys done and the disputes over exactly where the lot line is are heated and ridiculous.)
A realtor working on your behalf can save you from some very expensive mistakes.
N.:
A title search and deed still must be done - land is real property - just as the house is real property...and most likely a land plat/survey will need to be done to ensure property lines are true and correct. These things are NOT tiny - they can be HUGE when it comes to the bottom line - trees being cut down, felled trees - who is responsible, etc.
So do not scrimp on anything when it comes to purchasing land - ensure you are getting the right property and that no one can come back and say - hey - I have a vested stake in this property - if a title search wasn't done - it can happen!!
GOOD LUCK!!
If you are brave enough to buy it without an expert opinion and she's willing to sell it to you, go for it. Make sure it's land that can get power and water to it one day and that it's not in a flood zone.
Another thought... Go to the township and tell them what you want to do with the land. If they say OK then great.
My friend went to sell her house. The potential buyer made an offer contigent upon being able to put a pool in the back yard. When they asked the township they not only said no pool but no patio despite the fact that most homes in the neighborhood already had a patio. They now had to disclose this information to potential buyers which effectively made their house unsellable. Long story short they hired an attorney and an engineering firm to study/test the land and remediate against potential water issues. $30,000 later they received permission to build a deck which my friend did before moving. Ugh!
I would definitely hire an attorney.
You may not need a realtor but you will need a savvy real estate lawyer for your closing.
Yes you want to have a title search done because she may not have a clear title and then property you just bought may not be totally yours free and clear.
It would be wise to get those experts on your team to pursue your best interests. Also you will definitely want to check with the town if the property is zoned for what ever development ideas you may have in mind.
Sometimes it's cheaper to hire a lawyer to help with the paperwork so you might want to look into that. Also, since it's land you probably need a more advanced survey than they would do for a normal property. As far as her paying closing costs that's something to be negotiated with her but, yes, there are closing cost involved. If you're financing through the bank I think the down payment % requirement is also higher so that's something to think about too. Good luck!
Hire a real estate attorney to go over the contract. Make sure your interests are protected.
There is alot involved in ANY property purchase. You could do ALOT of homework and do it yourself but... You might want to be mindful of the fact that you are purchasing from your neighbor. Of course you don't want any issues that might get in the way of your relationship with her. I have to think it depends on what your relationship actually is with her...do you trust she will do all the right things and have ALL YOUR ducks in a row so it doesn't blow up later. Having your own realtor or an attorney do your side of the work could keep you from having to actually negotiate with her. There are many legal issues to consider like actual property lines ie: get a survey, access to utilities, zoning, liens, blah blah...lots of things you might not even realize.
