FAQs By Buyers

Frequently Asked Question by Someone Buying Land from Us

  1. Who are you?

  2. Are you a real estate agent? / Is one required to buy and sell land?

  3. How did you come to own a property and why are you selling?

  4. What happens next (after I agree to buy) and when?

  5. How does the Title Company Closing process work?

  6. Should I use a real estate agent to buy land from you?

Q1 – Who are you??

We are a Texas-based family-operated company that buys and sells vacant land. We may hold a property for appreciation or choose to sell a property. In some instances, we may “improve” the property by clearing brush, mowing, repairing or adding fences, or adding drives or culverts to increase the value of the property.

Q2 – Are you a real estate agent? / Is one required to buy and sell land?

We are not real estate agents. We DO NOT REPRESENT OTHERS as an agent or receive a commission for buying and selling land.

A real estate agent is not required for someone (or a company) to buy and sell land for themselves. We have experience buying and selling land and we have the financial ability and intent to take equitable interest in each real estate contract we contemplate or execute.

We may directly advertise our properties for sale using Craigslist, Zillow, Facebook and land selling websites as well as by word of mouth.  However, we find real estate agents are very knowledgeable and helpful in many situations. We frequently work with agents who know we buy and sell vacant land. We often list land with real estate agents. When we use a real estate agent to sell land, we gladly pay a commission. And, when we sell land to a buyer using a real estate agent, we attempt to negotiate a price that allows the buyer to compensate their representative or enable us to pay a reasonable commission to an agent who brings us a buyer.

Q3 – How did you come to own a property and why are you selling?

We use our eyes (drive-by) our ears (word-of-mouth network) and the internet to research counties or areas within a county to invest. We use the internet and publicly available data to identify properties that may meet our criteria and for contact information for property owners. Then, we contact property owners that may no longer want their property and make them an offer to buy their property. Often, sellers are referred to us through our land acquisition networks and by folks who know we buy land.

We sometimes hold property as an investment and may “improve” the property (and increase its value) by clearing brush, mowing, repairing or adding fences, adding drives or culverts, or providing utilities to the site (septic, water, electricity). Sometimes we choose to sell a property by cash sale. What we choose to do with a property, and when, can vary by property location, attribute of a property, and the market where a property is located. If we choose to sell a property, we often attempt to contact neighboring property owners to give them an opportunity to purchase a property before we broadly offer it to the public.

Q4 – What happens next (after I agree to buy) and when?

If we have the property listed with a real estate agent, our agent will communicate and coordinate the closing steps and process with the buyer or the buyer’s agent.  If we are selling property directly (without us using a real estate agent (For Sale By Owner), these are the typically steps.

Step Timing Details
Complete a Written Agreement Within 24 hours of buyer’s decision to purchase We verbally agree on terms and validate the name and address the buyer wants reflected on the deed and ensure we have correct buyer contact information (mail, phone number, e-mail and mailing address).   We send a Purchase and Sales Agreement to the buyer to sign and return.
Arrange the Closing Within two business days of receipt of the singed agreement We typically close sales transactions using a title company local to the property.  Upon receipt of the signed agreement, we send it, by e-mail, to the title company for closing and send an e-mail or text  to the buyer confirming  we have sent the agreement to the title company and advising who at the title company will be contacting the buyer.
Closing Process Usually completes in two to four weeks See Closing Process details below.
Pay the Seller At closing See both Closing Process descriptions for details.
Record the Deed Following closing See both Closing Process descriptions for details.

 

Q5 – How does the Title Company Closing process work?

When closing through a title company, we use a company that serves the county where the property is located. The typical closing process steps are:

1. We contact the title company to enlist their closing and services.
2. We send the title company, by e-mail, a copy of the signed purchase and sale agreement along with contact information for the buyer.
3. The title company reaches out to the buyer to get any information they need to close the transaction.
4. The title company arranges a time and place for the seller and buyer to close the transaction.
5. At closing, the title company collects the funds from the buyer, obtains any needed buyer signatures and provides the buyer copies of the closing documents.
6. At closing, the title company obtains any needed seller signatures, provides the seller with copies of the closing documents and disburses funds to the seller.
7. The title company sends the original signed deed to the county clerk for recording and then will send the recorded original deed to the buyer.
8. The title company sends the buyer a copy of the title insurance policy.

If the seller and buyer are in the general vicinity of where the property is located, the closing activities typically occur in the title company office. For parties not in the area, the title company will: 1) arrange for a mobile notary to secure signatures on needed documents, 2) arrange a “courtesy closing” at an affiliated title company located near the remote party or 3) send documents by courier for signature and notarization (with a pre-paid return envelope). Even if both parties are located near the title company office, the parties typically attend separate closing meetings with the title company.

Title companies require the buyer to provide “good funds” either by wire transfer made in advance of closing or by a cashier’s check provided at closing and made out to the title company escrow account.

Some more rural counties only have one or two title companies and the county property records may not be available on-line. This means a title company may need to send a representative to the county courthouse or clerk’s office to do title research as a part of the closing. This can take additional time depending on the number of closings the title company has in process.

Q6 – Should I use a real estate agent to buy land from you ?

Whether or not you use a real estate agent is a decision for you to make on your own. We do not advise for or against it.

We have personally moved all over the country and bought or built and sold many homes – using a real estate agent on both the buy and sell side each time. We believe they provide a valuable service in many areas of real estate and frequently use them for our company’s land transactions.

However, most real agents specialize in single family homes or commercial property. Many are not as familiar with (or interested in) vacant land – particularly smaller parcels of land. Much fewer land transactions occur on an annual basis than housing transactions – land can take longer to sell (and thus longer to generate a commission for an agent) so, real estate agents aren’t as incentivized to become active in the vacant land space. Because land typically has a much lower transaction price relative to houses, land transactions generate less commissions for real estate agents. They often are not worth an agent’s time and effort. Real estate commissions are, in many parts of the country, six to seven percent of the sale price and are split between the seller and buyer agents. At that rate, a vacant land parcel that sells for $10,000 only generates +/- $600 in total commissions and $300 for the seller’s agent. Contrast that with a house selling for $100,000 which can generate $6,000 to $7,000 in commissions. As a result, some agents need to charge the higher of 10% or $3,000 for land transactions to make it worth their time – after all, they are business professionals and need to earn a reasonable amount for the time they spend.