How to Buy Discount Lots

Buying discount lots can save large portions of money on your overall purchase, making it a great option if you are interested in preserving your money. Many approaches can be taken to navigate through the process, but it is often more difficult than buying land at market value as there are often unique challenges that come along with purchases at a reduced price.

What is a Discount Lot

Land is considered to be a discount lot if it is being sold at a price that is below market value. This can happen for many reasons, some of the popular reasons being that the land is located in a more rural area, land that has zoning or development restrictions, or land that is being sold by a seller that is looking to get rid of the land quickly.

Location

Where the land is located is one of the key factors that can impact its value. A common example of this is land that is located in a quieter area, or a region that is farther from cities. Places that are located in densely populated areas are more expensive, so buying land in more rustic areas often make for a good bargain. 

Along with location, zoning restrictions can also result in a deduction of overall price. Land that is zones for agricultural use only, or land that is subject to strict development regulations may be sold at a discounted price, as it is harder to develop in these areas compared to land zoned for residential or commercial use. Regions with harsher weather can also potentially be sold at a lower price due to the avoidance of buyers because of possible risks.

Eager Sellers

Land does not always have restricting components for it to be marked down. Often, sellers have had certain lots for sale much longer than they intended to, causing them to grow impatient and lower the price. This also occurs when a family has moved out of their house and subdivided their land.

Checking with your local government, looking for land being sold as a part of an estate sale, or searching online for price deductions

Local Government

The government keeps track of all land being sold, making it easy for people to find the land they are looking for. Some governments may also sell land at a lower price if they have acquired it through tax foreclosures. Checking the website of your county or city government allows you to obtain information such as the size, location, and price of the land. You can also check with your local tax assessor’s office.

Estate Sales

In addition to checking with your local government, looking for land that is being sold as a part of an estate sale is also a good option. When someone passes away, their estate (including any land they owned) will often be sold in order to pay off any remaining debts or taxes. 

To check for local estate sales or estate sales in the area you are interested in, checking with your county clerk’s office is a great way to start. There are also many websites that specialize in listing land for sale, some popular ones being Craigslist and Ebay.

Due Diligence

Once you have identified some potential purchases, the next step is to complete your due diligence. This involved researching the area to become aware of any factors that may make you doubt the worth of your property. It is also important ti get a professional appraisal of the land to determine whether it is being sold at a fair price. 

Additional Fees

Along with comparing the price of land to its fair market value, it is also important to consider any potential costs or expenses that may come along with the purchase. For example, if the land is located in a more remote area, there may be additional charges because of transportation needs and other accommodations. 

Purchase Agreement

Once you have decided that the land is a good deal, the next step is to negotiate a purchase agreement with the seller. This involves agreeing on a purchase price for the plot as well as any other terms and conditions of the sale. Working with a professional helps to ensure that your rights and interests are protected and that the purchase is fair. After the price has been settled, the final step is to close the sale and transfer ownership of the land to you. You can pay in either cash or through financing, completing the purchase by signing all necessary legal documents. 

Confirming the Deal

Buying discount lots are an amazing option for anyone looking to save money. By understanding what makes land a discount lot and following the necessary steps, you can successfully get a good bargain on a land that fulfills your needs.