Buying land in Tucson, Arizona, can be an exciting prospect, especially if you’re looking to build your dream home or invest in real estate. However, making the best offer when buying land in Tucson can be challenging, especially if you’re unfamiliar with the local real estate market. The key is to research factors that influence land prices in the area, and work with a knowledgeable real estate agent who can guide you through the process. In this blog post, we’ll share some tips on how to make the best offer when buying land in Tucson, Arizona, and help you navigate the market with confidence.
1. Do Your Research
When buying land in Tucson, several key factors must be considered to ensure that you make the best offer possible. As land agents, The Buy Tucson Lots Team, knows that one of the most critical pieces of information to gather is the property’s purchase history. This includes when the current owner bought the land, what type of land market existed at the time, how long they’ve held onto it, and the purchase price they paid. Knowing if a property has been on the market for 30 days or has been on and off the market for the past four or five years will help buyers get a sense of where the seller is at. We’ll also know if the asking price is well thought out or has very little relationship to current market conditions.
Before putting pen to paper, a land agent should also do their due diligence and research comparable sales in the area. If the local market trends suggest a strong demand, encouraging a lowball offer can be counterproductive. Instead, an agent should help buyers understand the nuances of a weak or strong market, as they can lend themselves to different types of offers. Armed with all of this information, buyers can gain valuable insights into the property’s value and confidently determine the best offer to make.
2. Understanding Development Costs
Understanding the potential development costs of a property is critical when making an offer on land in Tucson. It’s important to consider factors such as grading and clearing the land, creating homesites, and bringing utilities to the site. For example, if a property has an abundance of trees, Saguaros, greenery, or rock out-croppings, it may require significant excavation and site work, which can easily add anywhere from $25,000 to $100,000 or more, depending on the lot’s size and characteristics. By taking the cost of developing the site into account, buyers can make informed decisions about how much they should offer.
3. Write A Strong Contract
To create the best opportunity for buyers to secure a property, experienced land agents often use various strategies when writing a contract. One effective approach is adjusting the length of the inspection period, which is usually 30 days in land contracts. Shortening the inspection period can help generate more interest from the seller, but most agents only go ahead with this technique under certain circumstances. A knowledgeable agent can help the buyer focus and complete needed due diligence information quickly and efficiently thus allowing a shorter inspection period.
Experienced land agents also know that increasing earnest money deposits is another strategy that can improve a buyer’s chances of securing a property. Although some buyers may be hesitant to give a substantial deposit, a larger earnest money amount can make a stronger impression on the seller’s mind. A deposit of $5,000 or $10,000 can convey greater financial seriousness and capability compared to a smaller amount of $500 or $1,000. This, in turn, could increase the chances of a buyer’s offer being accepted.
4. Know The Seller’s Expectations
Land agents understand the importance of communicating with the seller’s listing agent to gain insight into their expectations and requirements. An experienced agent knows that reaching out to the seller’s agent can yield valuable information, such as whether timing or price may be motivating the seller or whether the seller is interested in a carryback loan. While carryback loans can be advantageous for some sellers, they may not be suitable for everyone. If the seller’s agent indicates that a carryback loan is advantageous for the seller, a buyer’s agent may suggest offering this option to enhance the buyer’s offer.
When working with a land agent to create the best offer on a property, it’s important for the buyer to make an offer to the seller that is beneficial to both parties. If a seller thinks that a buyer is creating a lowball, they very well may never respond, or they’ll end the negotiation if they know that other buyers are willing to pay more.
Are you looking to purchase your ideal parcel of land to build your first custom home in Tucson, Arizona? Contact Buy Tucson Lots at 520.918.5477 or firstname.lastname@example.org, and we’ll help you find the best lot of vacant land for you and your family!