Before you can take possession of the property, there are many things that go into buying land. While accepting your offer is a major hurdle, closing the deal is the real step.
Like closing on other types real estate, closing on land is a process that requires clear steps and requirements. How long does it take from accepting an offer to closing? This article will tell you everything you need to know about closing land deals. It also includes how long it takes to get your keys.
Average length of land closing
If everything goes according to plan, your land purchase will close within 30 to 90 days after you accept an offer .
Pre-negotiated negotiations with the seller (such a for a shorter or longer closing period) and any snags along the way with financing or inspections are all variables that can affect the length of your closing time. The closing period can also be affected if you are paying cash or taking out a loan.
Steps to Closing Land Purchases
Traditional land sales go through several steps, starting with the offer to purchase and ending with your formal ownership.
These include:
- Examination and title search
- Surveys and property inspections
- Bank financing
- Final walk-throughs
This should be familiar to anyone who has ever bought land or brick-and-mortar properties. It’s quite common for land closings to be complicated. These are not issues you will encounter with commercial or residential properties. These issues can be handled by a good attorney and real estate agent. This will allow you to decide when it is worth continuing with the sale and when it’s better to back out.
How to Close Faster
Are you in a rush to close the deal? To move things along, there are some things you can do prior to and during closing.
- Pre-approve for financing. Before you submit an offer for a piece or start your land search, make sure all your financial ducks are in order. This will eliminate some of the time-consuming steps in the closing process, and it will also guarantee that you can get the money that you need.
- Cash is preferred. Pay cash for your land purchase if possible. This will allow you to avoid the financing part of closing and it may make the seller more open to negotiating on your closing time.
- Request a shorter closing period. If you are looking to close quickly, it is worth asking for a shorter closing period. The seller may be just as eager for closing as you are, and will likely sell the property sooner than you suggest.
Remember that even if you have a faster closing, it is still important to allow enough time for title and land inspections. Do your research before closing to ensure you get a great deal.
