How to buy a land

Make an offer not very high. Usually, an initial payment for a piece of land is between 20 and 50%, and many lenders expect you to have done it before considering the possibility of giving you a mortgage loan. Do not be afraid to negotiate with the seller. In this way, you could significantly reduce the overall cost of the land.

The most economic properties make more financial sense when it comes to land, because the land tends to revalue as it develops. Look for relatively inexpensive alternatives that satisfy your needs as a buyer and do not run any of the high risks mentioned above.

Do not accept the first offer they give you. In general, the properties are sold at 85% of the original price requested. Start at 80% of the sale price and increase as necessary. It is unlikely that they will accept your first offer, but opting for a low price and increasing the offer is a good strategy to obtain a good price.

If you do not plan to build anything for a long time, consult about savings programs concerning real estate taxes in the place where the land is located. These plans can save a lot of money in the long term, because taxes and payments are reduced over time on unmade land.

Secure a loan Obtaining a loan for the purchase of land is complicated and much more than obtaining a loan for a house already built. This is especially true if you plan to wait years to start building. The banks are afraid that the construction plans will not bear fruit or that you regret taking them out if the land does not increase in value.

You can minimize the risk of being rejected by showing a very specific plan and showing that you have done an adequate investigation and that you have practiced due diligence to evaluate if the land meets your personal needs. If you have contacted the companies, entities and respective professionals, you are more likely to appear involved in your plans for the field and, therefore, receive approval for a loan oriented to an initial payment. [17]

Work with banks and credit unions in your area. These entities are familiar with the area and will know if your investment is sensible and has good research bases. [18]

Remember that your land is not built, so the down payment and interest rates will be higher than those of a traditional mortgage. Keep this in mind when planning your loan financially.

Consult with a lawyer during the closing process. Before finalizing the purchase, you should consult with a lawyer. On the one hand, a lawyer can help you optimize communication between you and the seller to make clear your rights as an owner. In addition, the legal professional should address any question that has become unclear after the inspection period, so that there is no uncertainty on your part.

Before finalizing the sale, ask your lawyer if water and mineral rights are a concern in the area. The slang concerning these matters and your rights about the materials found on your property can be confusing. A third part can help you clarify any doubts.

Ask about what contingencies you should add to the offer and how much time you need to address them. Contingencies are conditions that you must meet before closing the sale, such as financing, inspections and insurance. [twenty]

Before finalizing the offer, ask your lawyer about the construction requirements and permits you need, as well as if there is a deed of guarantee and, if not, if you should buy the real estate title insurance of the owner.


  • When buying land, it is important to be informed, but do not expect to understand everything on your own. Do a lot of research, but do not be afraid to ask questions and consult with a group of professionals.
  • Beware of scams, which are common in land sales businesses. Verify public records and non-profit resources. Do not hesitate to consult a legal expert or agent in case you have doubts.
  • While you can find lists on your own, it is highly recommended that you seek the advice of a real estate agent, especially if it is the first time you want to buy land. The agent may mention some dangers or problems that affect the value of a piece of land, which you may miss if you get involved in the process on your own.


  • Be careful with protected environmental areas. Buying this type of land is basically useless, since construction restrictions are very high. Consult with the environmental protection entities of your locality and subject the land to an appraisal to determine potential marshes and other protected areas before signing a contract.
  • Consider the added risk that banks run when approving a loan for the acquisition of land. While you can negotiate with banks and credit unions, be prepared for initial payments, interest rates and larger monthly payments due to the risky nature of this investment.