Cheap Land for Sale by Owner

The only thing better than cheap land for sale by a real estate broker, is finding cheap land for sale by owner. Cheap land for sale by owner can offer substantial benefits for buyers, such as lower prices, smaller down payments, elimination of real estate commissions, shorter documentation, guaranteed financing and no credit checks. When real estate is sold by a commercial brokerage firm and the financing arranged by large institutions, the transaction is usually more costly, time consuming and complicated

 On the other hand, cheap land for sale by owner can often result in a simple contract between seller and buyer, with the transaction closing in a few days time at very little costs. Both seller and buyer stand to benefit in transactions involving cheap land for sale by owner. The seller benefits because the real estate commission is eliminated, and the seller can collect the substantial interest paid through the years instead of the lending institution.

The buyer benefits because the seller provides private financing with a smaller down payment, and the elimination of embarrassing credit checks. Often this type of sale will utilize a contract for deed, also commonly referred to as a land sales agreement. When utilizing a contract for deed, or land sales agreement, the following precautions should be considered for the protection of both buyer and seller.

1. The seller should provide a copy of the deed as evidence of ownership and/or the buyer should check county records to verify the seller does in fact own the land and has the right to sell it.
2. The buyer might want to request that the land sales agreement is recorded. In this case, however, sellers almost universally require a quitclaim deed to be signed by the buyer and held in escrow, to be used only in the event of a default on the part of the buyer.
3. Both seller and buyer might want to order and review a short form of title search disclosing all matters currently of record affecting the property.

Cheap land for sale by owner is more common in rural areas of America than it is in large cities. Land investors and speculators, however, should never overlook the wonderful opportunities available in this arena. Cheap land for sale by owner can afford a buyer many benefits not normally available in transactions handled by real estate brokers.  

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Disclaimer: The information regarding land sales agreements is not intended as legal advice and readers should consult with their own attorney.