Author Topic: Costs to consider when buying land?  (Read 6035 times)

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Offline oracle

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Costs to consider when buying land?
« on: July 22, 2011, 02:21:03 PM »
What would be some costs to take in to the total cost of buying land? Aside from the land itself what are some fees one is to likely pay in the process?
i.e. survey of land, title company, taxes....

I have never bought land, so my knowledge on the subject is minimal. I would likely be overwhelmed by any fees I might not be aware of.

Offline MountainDon

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Re: Costs to consider when buying land?
« Reply #1 on: July 22, 2011, 03:22:50 PM »
The offer to purchase should provide info as to whom pays what. When we bought our land the survey was to be paid for by the seller. Taxes are usually split between the seller and buyer with regards to the portion of the year each owned the land. We split the closing costs. The best way to see what is what in your area may be to talk to a real estate agent/broker. In our case there were very few additional costs for us on top of the actual land price.
Just because something has been done and has not failed, doesn’t mean it is good design.

Offline oracle

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Re: Costs to consider when buying land?
« Reply #2 on: July 22, 2011, 03:26:53 PM »
The offer to purchase should provide info as to whom pays what. When we bought our land the survey was to be paid for by the seller. Taxes are usually split between the seller and buyer with regards to the portion of the year each owned the land. We split the closing costs. The best way to see what is what in your area may be to talk to a real estate agent/broker. In our case there were very few additional costs for us on top of the actual land price.

Thank you MountainDon!   ;D

What are closing costs? I am not familiar with them.

Offline oracle

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Re: Costs to consider when buying land?
« Reply #3 on: July 22, 2011, 04:10:47 PM »
I found out what closing costs are! I know now.

Offline Squirl

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Re: Costs to consider when buying land?
« Reply #4 on: July 22, 2011, 06:35:32 PM »
There is the usual "It depends answer."

If you go to some tax auctions you bid, you pay, you own the property. That is not the usual circumstance and is high risk.

The usual "fees" to land listed in the my own personal order.
LAWYER - This is my strongest suggestion.  You can negotiate a flat fee ahead of time.  They get paid regardless of whether the deal goes through or not.  They work for you. Not like a realtor that works to get you to pay the highest price possible to get the deal to go through. 
Title report.
Title insurance.
Septic Test
Survey
Repay Seller for partial year taxes
Title Recording Fee

Offline considerations

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Re: Costs to consider when buying land?
« Reply #5 on: July 22, 2011, 07:10:09 PM »
Another potential cost can be water rights, whether to own the right to access potable water through a local "co-op" (potable water collection, sanitation, and distribution entity)  or from another source for irrigation.

Offline oracle

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Re: Costs to consider when buying land?
« Reply #6 on: July 22, 2011, 09:19:58 PM »
There is the usual "It depends answer."

If you go to some tax auctions you bid, you pay, you own the property. That is not the usual circumstance and is high risk.

The usual "fees" to land listed in the my own personal order.
LAWYER - This is my strongest suggestion.  You can negotiate a flat fee ahead of time.  They get paid regardless of whether the deal goes through or not.  They work for you. Not like a realtor that works to get you to pay the highest price possible to get the deal to go through. 
Title report.
Title insurance.
Septic Test
Survey
Repay Seller for partial year taxes
Title Recording Fee

Thank you that was very helpful

Offline oracle

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Re: Costs to consider when buying land?
« Reply #7 on: July 22, 2011, 09:22:04 PM »
Another potential cost can be water rights, whether to own the right to access potable water through a local "co-op" (potable water collection, sanitation, and distribution entity)  or from another source for irrigation.

 Could one, if not allowed the water rights of a natural resource, then buy or get a permit to get the water? Does that make sense?

Offline OlJarhead

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Re: Costs to consider when buying land?
« Reply #8 on: December 28, 2011, 05:57:37 AM »
Testing the water should be included by the seller but you might have to foot the bill.

If the land has trees do you have rights to them?  A lot of land in the Northwest has logging rights that were sold to others so you should investigate that too.

Offline OlJarhead

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Re: Costs to consider when buying land?
« Reply #9 on: December 28, 2011, 05:59:04 AM »
And never forget the cost of putting in a well (could be $10k or more), septic (if you plan on living there full time), power (3 miles off the power line and you are talking a lot of $$$, phone (same thing, might be a long ways from a ped).

 

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