Buying raw land requires a buyer's agent to help smoothen the process. But what does a buyer's agent do if you are buying raw land?
A real estate agent is always a good choice if you're looking to buy a home or a piece of land. While buying a pre-built home is a fairly straightforward process, buying raw land isn't as simple. This is where a buyer's agent comes in.
An Accredited Land Consultant (ALC) will use their network of contacts to help you find a good deal on the land you're looking to purchase. They will use their experience and knowledge to ensure that the negotiations are done the right way and that all the paperwork is completed as required.
Hiring an experienced Accredited Land Consultant is a smart choice since they are well-versed in the local laws and regulations when it comes to purchasing raw land, which can differ from purchasing a regular or developed property. Here, we will take a look at what to expect when buying raw land and how a real estate agent helps you get through the process.
With years of experience in the real estate industry, we are in the ideal position to provide you with all of the information you need when it comes to purchasing raw land and the role of a buyer's agent in the same.
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Buying Raw Land
Because of two basic factors: limited supply and rising demand, raw land is categorically and objectively an appreciating asset. In a world where the population is growing exponentially, a finite quantity of usable land hasn't been built upon, making it an extremely appealing commodity.
As a result, raw land will inevitably increase in value as demand for the restricted asset develops, according to the most basic economic theory (supply and demand). It's no longer an issue of whether or not land will appreciate; rather, it's a question of how much it will appreciate.
Like every other real estate exit strategy known to today's investors, investing in land comes with a certain amount of risk. Although investing in raw land does not ensure future profits, it does not rule out the possibility.
The idea is to select land that is reasonably affordable yet has a lot of potential for future growth. If you're interested, Tennessee, Arkansas, West Virginia, and New Mexico are all good places to start looking for raw land. However, hiring a real estate agent can help you find the right lot according to your requirements.
How Accredited Land Consultants Help
A good Accredited Land Consultant can help you learn more about the town you want to live in, find suitable listings on the Multiple Listing Service and other listing agencies, deal with the seller's agent, arrange for you to walk the land, obtain helpful information not provided by the seller's agent, and guide you through the entire process of purchasing the land on which you'll build your home.
You will not be sorry for taking the time and effort to select your own agent. Purchasing raw property adds a layer of complication to your planning: you'll have to consider a long list of concerns that would have been addressed if you were purchasing an existing home, such as sewage and water hookups and septic systems. Hiring an experienced real estate agent can help you with issues such as zoning laws and other state regulations.
A land real estate agent who has completed a rigorous Land Education Program via an Institute is known as an Accredited Land Consultant or ALC. All ALCs have demonstrated their ability to execute and complete real estate transactions by meeting stringent experience and transaction volume standards. In order to maintain their status and ensure that their clients' best interests are prioritized, ALCs must adhere to the ALC Code of Conduct, which ensures high ethical standards.
Many consumers ignore the importance of having a broker or agent who is well connected with other brokers and agents around the country. Having a big network of other ALCs and best in the industry land brokers is helpful, whether it's to tap into their pool of customers looking to acquire a property or to receive extra insights into best practices or specialized expertise.
Years of Experience
There's no substitute for experience. As a result, candidates must submit a résumé demonstrating a minimum of two years of experience in land sales or brokerage in order to become an ALC. They must also show that they have completed at least five land deals totaling $10 million, have a minimum of three years of similar real estate expertise, or have been responsible for twenty-five individual land transactions.
Wealth of Knowledge
ALCs recognize the importance of being the expert on all aspects of a client's transaction. To successfully guarantee the client's best interests are satisfied, land transactions, in particular, need specialist expertise and experience with the business.
ALCs have been certified to have the knowledge and experience necessary to represent their clients in a variety of situations, including understanding the various legal aspects of a transaction, along with much more, which makes them an invaluable asset.
Emotions might get in the way while purchasing or selling raw land. This is where property experts come in to help with the discussions, which they do in a professional and impartial manner. When it comes to talking about statistics, they know how much the property is worth and have the wits to conduct a successful negotiation. They may also be incredibly convincing, leading to the best deals being closed.
Finding the Best Deals
Because you're so close to the finish line, you don't want anything to go wrong. A skilled property consultant can anticipate problems and assist you in overcoming them; however, an experienced Accredited Land Consultant will go the extra mile to ensure your purchase follows local and state laws. He'll also help with the final paperwork, ensuring it's all signed and completed. Now you may relax and enjoy the fruits of your labor.
Home pricing is both an art and a science that is based on local knowledge and expertise, as well as the current market price. The property consultant will advise you of the most competitively priced houses and bring you the greatest offers and bargains on the market, saving you a significant amount of money.
Advantages of Investing in Raw Land
Some investors may be unaware that real estate is a legitimate retirement asset. These accounts come with tax advantages that might help balance any tax worries that could inhibit a potential real estate investor otherwise. Pre-developed land used to be overlooked as a viable choice for real estate IRAs, but that has changed dramatically in recent years.
About THE AUTHOR
Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.Read More About Brittany Melling