Beth:
Hi, I’m Beth with TB Properties Buys Land. Today, we’re going to answer the question: how long will it take to sell my rural vacant land to a real estate investor, such as TB Properties Buys Land? How long will the process take from start to finish? This is a really good question and part of answering this question is explaining to you what can actually extend the length of closing. If someone’s trying to buy your property from you and they have to seek a conventional loan, that is going to take longer in the closing process.
In today’s market, it’s taking a lot longer to get loans from some of these lenders. As you can already see, rates are going up and lenders are already clamping down. A lot of lenders don’t like to lend on vacant land and lenders may need an appraisal of the property before they are willing to lend. So now in addition to the lender’s time to fund and the Title Company’s time to pull the commitment, the lender will need additional time in order to schedule an appraiser to get out to the property to make an appraisal. To make matters worse, appraisers are in short supply. This may mean that you may be waiting a month or two just for the appraiser to get out there to the property to take a look at it and then they give the report to the lender before they can actually lend on the land. Just remember that if you are selling to somebody who needs to get a loan, think that you might be looking at 60 days or longer in order to sell your property. When you work with a company like TB Properties Buys Land, one of the great things about us is that when we close, we pay in cash. When we pay in cash, it means we can close a lot faster.
Another point to consider is that if your property is owned by you or maybe you and your spouse and there’s no inherited property issues, things will move faster. However, if the property is inherited and perhaps there is a will that has been probated or still needs to be probated or even if there is no will and affidavits of heirship need to be sent out and completed, this may slow down the closing process.
But if you own the property outright and you don’t have any mortgages or liens against the property, we can close as fast as the title company can pull the paperwork. Some title companies are really fast and we can close in two weeks. Some take a little bit longer, three or four weeks. But when it comes to TB Properties, it comes to you as the seller, if you own it outright, it’s going to go faster. When you’re working with us, we’re not going to slow the transaction down since we’re paying in cash.
Now, if there are chain of title issues with your property, often times, I can’t say that always, but often we can still buy your property. If the property has been willed to you and that will’s been probated, it’s going to take longer. It’s going to take a little bit longer to close. This may take a couple months to go through. But it doesn’t matter who you’re selling it to, it’s going to take longer because the Title Company has more work to do. Now, if who you’re selling it to needs a loan, that’s going to extend it even longer. Just note that we are not going to be the slowest common denominator when it comes to inherited property. But on your side of the transaction, it might be slowed down if a chain of title needs to be cleared to some degree.
At this time, we’re looking at purchasing some property in which it was probated. We put the closing date out about five or six weeks, and we’re still waiting on the title commitment. This might be more like a two month to close deal, but we were upfront with the seller about that. We just said we were going to have an aggressive closing date to try to push that title company just to move a little bit faster. But we do have to give them adequate time to do their job. In answer to the question, it depends on the circumstances with regard to how fast you can sell your property. If you own it outright, it can be a very fast transaction. Expect somewhere between two and four weeks if you’re working with TB Properties Buys Land. If it’s inherited property, it could be more like six weeks, maybe two months. We’ve seen it go longer, like three months if there’s multiple signers and there’s a lot of affidavits of heirship that need to be taken care of.
If you have an individual circumstance that you want some clarification on, please feel free to reach out to us. We’re happy to talk to you on the phone or answer an email. We’re here and we look forward to working with you. Thanks again for tuning in.