Published date:
January 31, 2025Last updated date:
January 31, 2025By Laura Mueller
Finding the perfect property is only half the battle when buying land. You also need to be strategic with your offer, bidding in a way that protects your interests and positions you ahead of other potential buyers. That starts with asking the right questions regarding your needs, your budget, and the true value of the property.
Start here when placing your offer, and be sure to seek out professional assistance for any questions you can’t answer on your own.
It always helps to have some structure around your offer. This is achieved by figuring out what you are and aren’t able to compromise on, and then sticking to those limits as you negotiate your offer. These questions can guide this process and should be answered before you go all-in on a piece of land.
How much land you can afford is based on more than just cash on hand. You need to consider how much you can borrow versus how much you currently have. You’ll also need to leave room in the budget for closing costs, land improvements, permitting, and other land-buying expenses.
Changing a property’s zoning designation is incredibly difficult. Getting land rezoned requires fees, lots of paperwork, and a public hearing with your town’s planning commission. And even then it’s not a guaranteed approval. Talk to a local real estate attorney about your best course of action, as well as how much of a battle you can reasonably afford to put up.
Is the property at an elevated risk of a natural disaster such as flooding or fire? Are there contamination risks that may require remediation or limit your land use possibilities? Is the property home to any protected areas or species conservation efforts? A “yes” to one of these questions doesn’t necessarily mean you shouldn’t bid. It does, however, suggest that you need to put more research into the long-term investment potential of the property and how it aligns with your current interests.
There are all sorts of legal issues that can derail a land sale, including defective titles, boundary disputes, and disagreements over rights of use or access. Resolving them requires an investment in time and capital, and, as with land rezoning, they’re not always possible to overcome.
The stakes are high with an investment this big, so you may want to add contingencies to your land offer.
Making an offer contingent means that if you get an unsatisfactory answer to one of your questions after placing your bid and before closing, the offer contract is void and you do not have to move forward with the sale.
Examples of land contingencies you may want to consider including in your land offer include:
Your broker will be able to provide you with a complete list of relevant contingencies for your land offer. Keep in mind that asking too much of a seller can kill your deal. And it’s usually buyers who cover the costs of contingency-related inspections and testing. You have to be strategic with your contingencies and prioritize those that are most likely to have a major impact on your investment, otherwise you’ll never get a deal done.
All sellers are unique in their motivations, reservations, and willingness to compromise, so there’s no one-size-fits-all trick to making an offer on land. But there are things that a buyer can do to make their offer as attractive as possible.
The two things you want to focus on for placing a winning offer are (1) price it right and (2) make sure it’s secure.
Price it right: A suitable price doesn’t have to be $10k above ask - or even at ask at all. Context matters, and how much a property is really worth to you will depend on all the things mentioned above, including what you can do with the property and what’s within your financial limits.
Make sure it’s secure: Sellers are looking for a smooth deal just as much as buyers. Do upfront work as needed to present a stress-free offer, including getting pre-approved for financing and being reasonable with contingency requests.
If you want to further sweeten the deal, you could make a concession such as offering to pay for the seller’s closing costs or agreeing to purchase the property “as is.” Just be sure to respect your limits and know when to fold. There’s a lot of land for sale out there, and you don’t want to make a bad investment just to get a deal done.
We’ve made it easy to find land for sale in the U.S. Browse land by state or property type, and connect with a local land broker who can make sure your final deal is as good as the offer you put on the table.
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