Land purchase ????

[Wildabeest]

At the end of the day I guess the question is how bad do you want it

Great point right there. When I bought my cabin in MT, I knew it was a distressed seller situation based on some nuggets the realtor offered up and then some research I did after that after that (tax lien on the property, outstanding child support judgements, gambling problem). I wasn’t in a situation where I really needed to buy something, so I put in a low ball offer that was 20% below asking price in a pretty hot market, but it was a cash deal with no contingency other than title work and I knew the property had some issues with financing it. Owner countered with only 5% reduction. I held firm. Turned out he needed the cash more than I needed the cabin and he accepted. So it all depends on your situation and whether you are in a position to walk away if you don’t get the price you want.

 

[Pucky Freak]

I’ve made several offers on properties, all in writing and a $1000 check included. Never been ghosted yet, although some of my offers were rejected, and I rejected some counter offers. I see nothing wrong with playing hardball but if you don’t make a formal offer along with it there’s every reason for the seller to assume you’re a tire kicker.

My advice - send a formal offer and a check with your lowball offer, unless you REALLY want the property and are satisfied with overpaying slightly, in that case do the same but at her bottom dollar.

My current property me and the seller were both hardballers. The dual agent was the weak link in the deal - she cracked and actually took the difference between offers out of her commission. It was a win-win-win, but the seller probably got the best part of the deal because I’m almost positive he would have cracked if the agent hadn’t done so first. 4 years later I love my property - I wouldn’t have regretted paying 5% more if that’s what it came to.

 

[wisconsinteacher]

Today's update. My agent called the seller's agent and they still have not gotten a response from the texts/calls. We have decided to put in an official written offer with a time to respond.

 

[westbranch]

I am surprised the agents let that much back and forth go on without a written offer.

 

[SAJ-99]

After an inspection I had a buyer want me to nock $150 off for a crack in a window... GTFO.

I talk to people at title companies all the time. Oh the stories they can tell. My favorite is the buyer and seller arguing over a $7 fee. Can't make that stuff up.

Too many people get into a negotiation trying to "win". She was obviously serious that number was her "bottom line". @wisconsinteacher, before ever walking into a negotiation you have to know what is the most you would be willing to pay and will walk away if the seller doesn't like it (BATNA). Your RE agent should know that number but not how much you Love the property. The agent also should know you only get so many "swings at the plate". Good luck.

 

[MTGomer]

The written offer and an earnest $ deposit with a certain time frame (48-72 hours)for them to respond is definitely the way to go.
It’s not really an offer without that, it’s just a conversation.

 

[npaden]

Is your RE agent a friend? Do they regularly deal with land sales?

It seems that they may be part of the problem to me. They should have already told you what several of us have pointed out here.

They wouldn't be high on my list to use in the future.

 

[wisconsinteacher]

My agent is not a friend but I know him. The seller's and the agent on that side are friends.

I got a response today. The seller is still at 120k so we are $5000 apart oin the conversation. I will talk to my wife tonight and made a decision.

 

[MTGreenhorn]

My agent is not a friend but I know him. The seller's and the agent on that side are friends.

I got a response today. The seller is still at 120k so we are $5000 apart oin the conversation. I will talk to my wife tonight and made a decision.

Glad you heard back at least, Hope it works out for you if the fit is right

 

[Pucky Freak]

My agent is not a friend but I know him. The seller's and the agent on that side are friends.

I got a response today. The seller is still at 120k so we are $5000 apart oin the conversation. I will talk to my wife tonight and made a decision.

You may find the seller magically drops their bottom dollar to 115 with a check in hand and a 72 hr offer expiration. Not trying to be rude, but you’ve really put yourself in a position of weakness with all this back and forth between agents without any serious offers.

I’ve sold stuff - guns, cars, property, etc. My sale price is 10% less when I see some green.

 

[wisconsinteacher]

You may find the seller magically drops their bottom dollar to 115 with a check in hand and a 72 hr offer expiration. Not trying to be rude, but you’ve really put yourself in a position of weakness with all this back and forth between agents without any serious offers.

I’ve sold stuff - guns, cars, property, etc. My sale price is 10% less when I see some green.

I would agree. I have not helped myself here. I guess it is a lesson I have learned and hopefully can share to help others. I will let you guys know what happens next.

 

[Gerald Martin]

Right now you are simmering in the broth of your own eagerness.
The seller figures he has you where he wants you and time is on his side.

The biggest question you need to weigh is how much you want the property? Is it just a piece of ground or is it THE SPOT? The answer to that question is up to you and your wife.

Is 5k a make or break number in your budget for future plans? If you are planning to build, 5k is the difference between Formica tops or granite in the kitchen and maybe an extra cabinet or two. Maybe it’s also tile on a shower wall or a few nicer lights in the package.

Only you can decide if it’s worth it or not and whether you want to risk missing the deal over 5k or not. But whatever you decide, it isn’t worth going further without having your agent write up your offer.

 

[Slam]

My agent is not a friend but I know him. The seller's and the agent on that side are friends.

I got a response today. The seller is still at 120k so we are $5000 apart oin the conversation. I will talk to my wife tonight and made a decision.

Both agents are acting as clerks rather than real estate professionals...this is common.

You have received good advice here.

Ask your realtor for comps, how do they (sold and asking $ per acre) compare to what your looking at? If your sellers price is above the comps, why? Are there unique features?

Do minerals convey? Assuming this is larger than a lot.

As stated above, submit the offer, with a short timeline (3 - 4 days) to respond and include a decent down payment. Make sure there is language allowing you to get get your deposit back assuming something comes up during the due diligence period (this timeline should be spelled out in the contract) and mentions you are buying the property from the seller conveying a general warranty deed free of defects (this is normal practice). Speaking of defects, ask your realtor to include a list of seller disclosures (this common practice to be included in the due diligence timeline. ie) easements, pipelines, fences that are not the sellers on the land, mineral leases, toxic chemicals, flood plain, all the horribles, etc).

FYI - vacant land generally carries a 10% commission......so, if the seller rejects your offer (and your offer is fair) grab your realtors hand and say "let's get this done..partner" lol. I've had it done to me and I have done it....it's business. Both realtors share in that commission, with the listing realtor generally taking a larger portion.

When it's all said and done, don't be an asshole, but remember tuff negotiations are part of business....and a real estate deal is business...even when you are buying for yourself. And you should feel comfortable asking the realtors to get engaged and get the deal done. They are being compensated for their time, somewhere between $11,500 and $12,000 (assuming the standard 10% vacant land commission).

Good Luck.

 

[ludville1]

Best of luck getting the property. There is nothing like owning your own hunting land!

 

[Bambistew]

I'd tell someone to pound sand if I gave my best price and they still tried to get me lower. If you think $5k is no big deal just toss 50, $100 bills on a fire. No big deal right?

I work on estimates that are many multiples of hundreds of millions of dollars. I have guys that get in the mindset that its "only" a million dollars. Its totally different when its not your money.

Chalk it up to a lesson learned in haggling. Sounds like you lost, and making the deal was more important than getting the property.

 

[SFC B]

When I was stationed in England I frequented an auction every week- like clock work. I would go in Friday evening after work for the preview, make notations on my program as to my interest and MY limit for the bid. Saturday would come and I would take it as it came.....NEVER over my limit. I knew what things were worth to me, that is all that matters. Negotiations (or bidding) are only relevant to your personal view of value. BTW, I had the nickname "2 Pound Larry" as I would regularly pick up lots for that (the minimum)-including such things as a working deep freezer, a side board and hand carved German hiking trail sign among others.

 

[Gellar]

Is there anything on the property that needs fixed? A new culvert in the driveway, a driveway put in, a pond that needs dug out, etc? I’d offer the 5k more with the caveat the seller has that stuff fixed before closing.
And when was the last time it was logged? If the seller just had it logged before putting it on the market I’d probably be back to my original offer.

 

[wisconsinteacher]

Is there anything on the property that needs fixed? A new culvert in the driveway, a driveway put in, a pond that needs dug out, etc? I’d offer the 5k more with the caveat the seller has that stuff fixed before closing.
And when was the last time it was logged? If the seller just had it logged before putting it on the market I’d probably be back to my original offer.

It was logged 13 years ago. My wife and I are working on finances now, but it is a slow process.

 

[ThunderNocked]

It was logged 13 years ago. My wife and I are working on finances now, but it is a slow process.

So you paid the $5000 over? Or are you still looking to make an official offer?
I'm in no position to buy land right now but am really wishing i could buy a little something out in the boonies up here in Alaska. Hope this works out for you.

 

[802flyfish]

You most likely ruined any chance you had of buying that property. Low balling then offering below her final asking price is just insulting... You should probably get a new agent while your at it, he should of interjected when you came in with your 3rd low ball offer. Not sure where this property is, but 300+ days on the market is a good indication that she ain’t in no rush to sell it.

At this point, I would offer asking and include a letter.

How to write a winning house offer letter (plus, a sample)

A house offer letter can strengthen your offer by helping the seller see you as a person who will love their home. Here's a sample offer letter with tips for writing yours.

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