Beth:
Hi, I’m Beth with TB Properties Buys Land. A common question we are asked when we speak with land sellers is,
“When you’re purchasing my land, are you going to pay with cash, or will you be seeking a loan in order to purchase my property?”
Why is that a good question for a land seller to ask us? This is such a great question to ask because it can affect the amount of time in which it takes to close on the sale of your land. It might even affect whether the buyer can buy your land or not at all. If the buyer of your property must secure a loan in order to purchase, it can greatly extend the closing time. You might consider this: we’re already waiting on a title company to do the title search and put together the Title Commitment. Depending on the time of year, Title companies may take three or four weeks to close. It could take longer to close if you factor in a busier times, holidays, etc.. However, if you’re trying to secure a loan, you have to wait on the mortgage lender, and oftentimes they’ll have to call an appraiser. So now you’ve got to wait on the appraiser to get out there. Then the lender and then title’s got to schedule you in.
Instead of taking three to four weeks to close, in the case of a cash sale, it may be closer to 5, 6, 7, or even 8 weeks to close on the property. To add to this, especially right now, we’re seeing that the real estate market has softened. You may have already seen that within the residential housing market, where it has stabilized or still is in the process of what some call “stabilizing.” We are seeing that within the land niche of real estate as well. Land tends to follow what you see in the housing market. Every state is different, of course, every county, every area, but just I wanted to share the trend that we are seeing right now with you.
That’s really important. The time delay to purchasing your property is really important. In another scenario, what happens if we’re trying to secure a loan to buy your property and it doesn’t work out, then we have to go find someone else, another lender, in order to secure funding. What if that doesn’t work out at all? The entire process of attempting to purchase your property with a loan could end up simply tying up your time and you never even selling your property at all.
On the flip side, when it comes to purchasing your property, here at TB Properties Buys Land, we pay in cash. This makes for a much faster transaction and sale of your property. It means you bypass the mortgage lender, the appraisal process and we can go straight to the title company and get that on their calendar for a closing date really quick. Oftentimes, we can close as fast as three to four weeks.
Hopefully that answers your question. Please understand that every real estate investor is going to be different, and so it’s really important that you ask that question and any others you might have, so that you have a better understanding of how the process is going to work. Thanks for listening. We appreciate it. Feel free to reach out to us. We’re happy to make offers on 10 plus acres of land anywhere here in the country. Thanks again.