A land buyer helps clients buy and sell vacant, undeveloped property to construct homes or commercial buildings. They also advise clients on how to use the property. In this career, you have a specific niche within the real estate industry that requires specialized knowledge of local laws and regulations. You work with a wide range of professionals, including real estate agents, surveyors and lenders. Land buyers earn a salary based on their experience, education and skills.
If a client wishes to build a house on a plot of land, he or she needs to have the financial resources to cover a down payment, permit fees and building costs. Ideally, the buyer will have improved his or her credit before seeking a loan for the land purchase. If a lender provides financing for the land, interest rates tend to be higher than for mortgages. The terms of a loan for land typically require a smaller down payment, but the borrower can lose the property if he or she fails to meet the repayment terms.
Most vacant land is not serviced by municipal water or sewage systems. In rural areas, a land professional can help buyers understand the options for water and septic system installation, such as wells or septic tanks. They can also connect a client with local service providers like surveyors and inspectors. Land agents also offer advice about zoning ordinances, which regulate how land can be used for residential or commercial purposes.
Vacant land can be purchased with either a traditional mortgage or through seller financing. In the case of seller financing, a contract with the terms and conditions set by the sellers is usually drawn up and recorded by a local official. Depending on the state in which you live, this step may be required by law to protect the interests of both parties.
In the case of a mortgage, an individual must first qualify for a home loan by meeting the credit requirements of the lender and saving up a down payment. However, if a person has a strong income and good credit, he or she may be able to buy land with a land contract rather than a traditional mortgage. A land contract allows a buyer and seller to mutually agree on terms for the sale of the property, but it has less consumer legal protection than a mortgage.
Before buying land, a person should examine the property carefully to make sure it is right for his or her plans. For example, if the person intends to hunt or fish on the property, he or she should look for a place that is isolated from public roads. If the property is near highways or railway tracks, it should be inspected at different times of day to evaluate noise levels and other factors that could impact the enjoyment of the land. It is a good idea to have a lawyer or a licensed agent review the contract before signing it.