Frequently Asked Questions by Someone Selling Their Land to Us
Who are you and why are you contacting me?
What happens next (if I am interested or after I agree to sell) and when?
How does the Title Company Closing process work?
What are you going to do with my property after you buy it?
Are you a real estate agent / Is one required to buy and sell land?
Should I use a real estate agent to sell my land?
Q1 – Who are you and why are you contacting me?
We are a Georgia-based company investing in vacant land. We use our eyes (drive-buy) 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 property tax and assessor’s data to identify properties that may meet our criteria and use those sources to get for contact information for property owners.
Q2 – What happens next (after I agree to sell) and when?
Q3 – 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:
We contact the title company to enlist their closing and escrow services.
We send the title company, a copy of the signed purchase and sale agreement along with contact information for both the buyer and seller.
The title company reaches out to the seller to get any information they need to do the title research and close the transaction.
The title company will do a title search and confirm the sellers are the legal owners with the right to sell and provide a report confirming the title is clean and clear of liens. If any inconsistencies are found, they work with the seller and/or buyer to clear up any matters.
The title company arranges closing.
At closing, the title company collects the funds from the buyer (we often do this by wire transfer), obtains any needed buyer signatures and provides the buyer copies of the closing documents.
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.
The title company sends the original signed deed to the county clerk for recording and then sends the recorded original deed to the buyer.
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 made out to the title company escrow account.
Depending on the timing of the buyer and the seller closing meetings and whether they are held in the office of the title company or remotely (mobile notary or courtesy closing with another firm) the title company will typically either pay the seller at closing or within two business days of the seller’s closing meeting by title company escrow account check or by wire transfer.
Some more rural counties only have one or two title companies and the county property records are often not available on-line. This means the title company must send a representative to the county courthouse or county clerk’s office to do title research. This can take additional time depending on the number of closings the title company has in process.
Q4 – What are you going to do with my property after you buy it?
Each property can be different. We may hold a property as an investment for a period. In some instances, we may choose to “improve” the property by clearing brush, mowing, repairing or adding fences, adding drives or culverts, providing utilities to the site (septic, water, electricity). After which, we may hold the property for appreciation or choose to sell the property to provide ongoing cash flow to our business.
Q5 – Are you a real estate agent / are we required to use a real estate agent to buy and sell land?
We are not real estate agents. A real estate agent is not required for someone (or a company) to buy and sell land for themselves. We have the financial ability and intent to take equitable interest in each real estate contract we contemplate or execute. We DO NOT REPRESENT OTHERS as an agent or receive a commission for buying and selling land.
Q6 – Should I use a real estate agent to sell my land?
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.
