It’s an exciting day when you buy the land you want to help make your dreams come true and when it’s all yours! 😊
Then, one day, unexpectedly, until the day you build on your land, you’ll receive an offer in the mail for it. You open it up and first thing you think is “What?!!!” “You want to buy my land for How Much???!!! Are you kidding Me?!!!”
All the sudden you may be wondering “Why that price”, or “What’s wrong with the land”, or “Are they just trying to take it from you”??? You may feel insulted. But, you should know it’s not that there’s a problem with your property in most cases. And the offer is simply a computer-generated offer. So, put your frying pan away, for now. LOL.
Real Property Values are determined by what buyers actually pay. Not by what others hope for.
What’s happening, is that Investors, including myself, look for owners who “Need and/or Want Cash quickly” and those that no longer want to hold onto the property for whatever reason. It could be a hardship, bankruptcy, divorce, hospital bills, rehab/nursing home situation, a need for funeral expenses, a wedding, a bucket list item, a bail release, a desire to invest elsewhere, to buy or build a home elsewhere, or too much debt that needs to be paid, or whatever else it is that causes someone to have a need to cash out on something they’re not using and probably never will.
Many times, people inherit a property but prefer money instead since they do not plan to live or build there. Other reasons could be a judgement they need taken care of, liens, and tired of paying property taxes year after year for something they’re not using.
Some people just want to be done with the problems they’re facing, or a need they have or want, so selling the unused land can really help. And, the only way Investors can even find these people is to reach out in one way or another to see what response they get. Often that may include someone very upset about the low offer, who wants to take it out on the investor with name calling. But the offer really wasn’t intended for that person. It’s not an investor’s job to hurt anyone. It’s to help someone who needs or wants their help. If the offer is an insult, it’s easier to simply ignore it.
So, it’s people who want cash more so than their land that the investor is looking for in order to actually help them. This way no one has to pawn their wedding rings for so much less than their worth, or sell a car or anything else they actually do need either.
Land will usually always provide value more so than things in those scenarios rather than waiting long periods of time by listing with a Realtor, which usually results in price reductions later, and possibly hassling negotiations because a buyer isn’t paying you what you want, and then there’s the extra costs on the Seller’s part when a buyer is found that way, if at all.
When someone needs cash and decides to sell to a legitimate investor they actually save more without the hassles, wait, added costs, and there’s no guarantee you’ll even get a buyer otherwise. How do you know an Investor is even legitimate? Well, they should be registered with the state they live in or do most business in. If they’re an LLC or other Corporation, you should be able to find them on OpenCorporates.com. From there you can click on the State’s weblink provided for whichever state they are registered in and you’ll find the name of the Manager of that business, who is the one in Authority as Owner to do business, as long as it shows Active.
When an investor does buy, the sales price will always be below market value since there are additional costs that the Investor incurs throughout time as well, including all risks associated with taking on the property for however long they have it, including cleaning it up, and whatever else may need to be done on the land.
Nevertheless, this creates a win-win situation for both the seller who needed quick cash and for the buyer wanting to save more in the long run.
When selling land, it’s always best to use a Title Company, in order to make sure everything is done according to state laws. A Title company serves as a neutral 3rd party, not taking any sides, but making sure all is well and done as promised.
However, if the property is only being bought for a few thousand dollars, it’s often best to simply record the transfer directly with the county, to save on costs whereby the Investor is able to perform their own title search making sure all is well, and to help correct any matters that may be standing in the way of allowing the transfer to happen. And of course, once it is recorded at the Recorder’s Office for the county where the property is in, then all is well. The recorder will not allow anything that is not done right, so this is also another way to assure all is well.
If the investor is operating under an LLC or other corporate entity, you can always check OpenCorporates.com to see if they’re a legitimate business that is actively registered as a licensed business in order to even perform such transactions. On the other hand, if they’re buying under their own name, then you need to check some type of reference, and do your own search on their name to see what you find.
So, now you know why you will get, or are getting a low offer when you know your property is worth more.
The good news too, is that if you bought from an investor then you most likely scored a great deal that saved you money with no commissions too! 😊
In other words, you got a good deal, no matter what! Don’t sweat the small stuff. 😉