Buying land can be a largely straightforward process, especially when compared to buying a house. Because buying land is a lot less complicated, a real estate agent isn’t such a necessity.
There is no need to pay for and subsequently wait for inspections, nor is there an agent charging commission fees. Land is also a good investment, especially if it is for sale by owner. Below are 3 pros of buying vacant land for sale by owner in Boston.
More Purchasing Options
Perhaps the most attractive of the pros of buying vacant land for sale by owner in Boston is the fact that it is far easier when it comes to financing. Many landowners will provide financing to make the sale a more certain thing. The pluses of owner financing are these:
- You can often get lower interest rates.
- You can get by with a lower down payment, if any at all.
- You probably won’t have to suffer through an intrusive check into your credit and work histories.
When it comes to buying land, there’s also the cash option. Since there is no house or other structures on vacant land in Boston, it will be a far cheaper proposition than buying land with a house on it. You just might be able to pay cash. If you do, you will hugely increase your negotiating power with respect to price and other concessions.
When a landowner hires a realtor to sell her property, it will simply put, cost them more. Even if the owner offers to pay the closing costs, she will likely bump up the sale price to cover that expense. Buying vacant land directly from the owner will cut out that middleman and save you both money. You’ll avoid a lot of time-consuming red tape, too. The simple fact is that land prices are always higher when the seller uses a real estate agent.
As we just mentioned, you stand a good chance of getting owner financing when buying vacant land for sale by owner. That’s good because it’s far harder to get financing from a bank or other lender for land than it is for a house, which will save you a lot of money.
With bank financing, you’ll need at least a 12% down payment. At current interest rates for land loans, you would wind up paying almost double the original loan amount over the 30-year life of the loan. Although with owner financing the loan period will generally be much less than 30 years. That’s a good thing because you will pay substantially less in interest.
It often takes 45 – 60 days to close on a home purchase – and the whole process from offer to signing the official documents can take up to a year, but closing on land for sale by owner can be much, much quicker. In fact, when an owner is selling land directly, you can often get all the paperwork signed and the deal finalized in a single afternoon.
The speed is a pro, certainly, but you may want to seek some expert advice before putting pen to paper. You will need to make sure the title is clear and that you are getting the best kind of deed for your purposes. For example, you would absolutely want to make sure there are no back taxes owed on the land, which can be the case sometimes.
These 3 pros of buying vacant land for sale by owner in Boston make it look pretty attractive. And it certainly can a good investment – if that is, you have just a little assistance from an expert or two.