How many times have you heard of someone finding the perfect property, only to lose it because it went under contract before they could make an offer? It happens all the time. So why does this happen, and more importantly, how can you keep it from happening to you?

Make a Financial Plan

Whether you’re planning to buy land for sale soon or just starting your land search, there’s one critical step you need to take before anything else: determine your financial plan.

Even if you haven’t yet settled on the type of property, location, or acreage you’re looking for, and are keeping your options broad, it’s essential to know how you plan to pay for it and be prepared to act quickly when the right opportunity arises.

For example, if you’re planning to pay with cash, is the money already in a liquid account that you can access immediately? Or will you need to convert paper investments into cash? If so, do you know how to initiate that process, how long it takes, and what tax implications may be involved?

If you plan to use land financing or a land loan, have you already spoken with a loan officer to understand what documents you’ll need to get pre-approved? Have you compared terms from multiple lenders to find the best fit for your situation? Since interest rates and loan terms for land purchases can change monthly, are you staying in touch with your lender for updates?

When the perfect property comes along, whether tomorrow or six months from now, you need to be ready to act. That means being able to submit proof of funds or a pre-approval letter along with your offer. If you wait to start the financing process after finding the ideal property, someone else could swoop in with a prepared offer and beat you to it.

Don’t let that happen. Set your financial foundation first, then enjoy the land search with confidence! If you’ve got questions about buying land or land purchasing strategies, feel free to contact me at Shudson@NationalLand.com or reach out to your local Land Professional today!