Getting the Best Price on Land for Sale

You’ve found the perfect piece of land. It’s got everything you want and more. You’ve done your due diligence and are ready to start the purchasing process. But, like buying anything else, you want to get the best deal possible. And there’s a lot to consider. From interest rates, cash discounts, loan fees, and wiggle room in the asking price, there’s a lot to consider in getting the best possible price.

Let’s look at the options available so you can navigate the land buying process with ease and confidence. 

What Should I Pay for Raw Land?

First off, you’ll need to see how reasonable the seller’s asking price is. This background information is important for making an informed decision.

If the price is overly high, you’ll be able to give a reason for your lower offer. On the other hand, if the asking price is low, you may want to jump on the land right away (once you make sure there’s no catch — a super low asking price is a bit suspicious). If you’ve done your due diligence by this point, there should be no surprises with the land. 

But how do you find out what’s a reasonable price? Look at any land parcels around the one you’re looking to purchase. You can do this through online marketplaces. You’ll want to make sure the size, features, zoning, and allowable uses are similar. It’s best to search in a five-mile radius around the property you want to purchase. 

Looking at other lots can give you a general idea of what land is selling for in the area. But if you want a more specific look at the property’s worth, you’ll need to hire an appraiser. You may have already done this as part of your due diligence. If so, you should already have a cost analysis in the appraisal.

Negotiating the Best Price for Land

A land deal closes when a buyer and seller agree on the right price. Lowballing the asking price and presenting a laundry list of “issues” with the land is no way to get on friendly terms with the seller. Instead, a thoughtful, well-researched and fair offer is the best way to go.

This sets the stage for a constructive, win/win process and greases the wheels for a successful outcome where both parties are happy when the deal is done.

Get the Best Price with Cash

By far the best way to get the lowest price on your dream land is by paying for the land upfront in cash. Of course, you don’t have to show up with a briefcase of unmarked bills. When we say “cash” we mean that you pay for the property in one lump sum, avoiding monthly payments and interest rates. 

Most sellers will significantly reduce the price of their land for a cash buyer. (We certainly do here at Land Elevated.) This is good for both parties. You get a good deal on the land while the seller gets a nice influx of cash and can pass on the title and be done with it. 

The nice thing about most raw land is the low price — especially when compared to purchasing a house. This makes it possible for many people to buy the land outright. 

But what if you don’t have the cash? There are other ways to get a good discount on raw land. 

Large Down Payment

A large down payment is the next best way to get a nice discount on raw land. If you can’t afford to pay for the land outright, a large upfront payment can go a long way toward getting the seller to drop their price. 

The rest of the land you can pay off over time if the seller is willing. You may even be able to get a lower interest rate thanks to your large down payment. At Land Elevated, we’re happy to provide excellent discounts and low interest rates for anyone who puts down a large payment. 

If you’re dealing with a seller who doesn’t offer owner-financed deals, you may need to get a loan to pay for the property upfront, then pay off the loan over time. Most lenders require a 20% down payment to get you started, so this is important to keep in mind. 

Favorable Financing

If you can’t offer a large upfront payment on the land, the seller will probably be less likely to lower the price on the property. However, if you can afford to make large monthly payments to the seller, he or she may be willing to work with you on price. 

The quicker you can get the land paid off, the less you’ll have to pay in terms of interest rates and, sometimes, overall price. If the buyer has poor or no credit, the lender will likely want higher interest rates to account for the risk they’re taking in selling the land to someone who isn’t highly qualified. 

Of course, every seller is different. For example, at Land Elevated, we don’t do credit checks or bank approval processes. There’s no red tape, and we generally keep our monthly payments lower than a car payment. So even if you don’t have cash to put down upfront, we can still help you buy your dream land!

Conclusion

Getting the best price on land is all about coming to a mutually-beneficial agreement with the seller. But before you start thinking about what a fair price is, you’ll need to do some research to find out if the seller’s asking price is reasonable. Once you know this, you have a baseline to work from. 

Buying land outright is the best way to get a big discount. Sometimes sellers will take thousands of dollars off the asking price for a cash offer. Likewise, a high down payment can knock a nice chunk off the price. Large monthly payments can also be attractive to the seller, helping them get the price down. 

At Land Elevated, we offer huge cash discounts and super-saving financing for those who place large down payments on land parcels. Find your dream land here and enjoy some of the best prices in the business!