Thoughts on Surveys for parks??

Question

Hi all -

I'm wondering what your stance is on a survey when purchasing a park. I'm negotiating on my first purchase. It's on 18 acres, only about 3-4 of which is developed. Topography isn't really conducive to further development. I got a quote for boundary ($10k) and ALTA ($14k) surveys and had a bit of sticker shock. My lender doesn't require one. Current seller has owned the park about 5 years and didn't get one. My attorney is urging one. I'd love to hear your thoughts and experiences!

Sarah Dignardi · Answer

thank you, everyone, for sharing your thoughts and perspectives! :-)

Henry Clark · Answer

Ask the current owner to show you the corner markers.

Is this in the countryside with existing fence lines?  Check with your city or county supervisors.  Where we are at preexisting fwnce rules over survey.   Although if you plan to subdivide and sell off in the future I would work with the neighbors and match the survey

Check with a different surveyor.  Shouldn’t cost that much. Have them put markers along the property line. As soon as they survey drive stell posts in the ground.  Preferable dig a hole then steel post then concrete in. Then put white pipe over it.

No need for Alta unless you plan to spend $millions.

Attach pictures or describe why the rest is not usable. I like waste ground. There is more value there than regular ground.

Sarah Dignardi · Answer

@Tom Gimer that sounds like an interesting concept. would I engage the surveyor after the title search in that scenario?

Sarah Dignardi · Answer

@Mario Dattilo you bring up a good point about future lenders/buyers. have you found that having an ALTA survey raises the value of your property when you go to sell? (i'm new to this space so sorry if this is a silly rookie question lol). the park only has 17 (possibly 18) lots. the lot is large, 18 acres in total, but most of it is heavily wooded and not developed at all. I went to the WV gov't page to find additional licensed surveyors and am reaching out to many of them for additional quotes.

Mario Dattilo · Answer

@Sarah Dignardi get other quotes. That does sound a little high but I don’t know the size of the parcel and how complex it is. Always get the ALTA based on what future buyers or lenders will need, not your current lender.

Once you own the property you need to deal with any issues it has. If you find them pre-purchase they can be resolved before closing.

I don’t typically do the topography on my ALTA surveys. You do want all structures shown with dimensions and setbacks etc.

this report, the phase 1, and zoning reports are not the reports to cut corners on in your due diligence.

An ALTA for a good size park should run $6-10k in my experience across several states.

My profile has references to other MHP investor info that can help you through this important acquisition.

Good luck!

Guy Gimenez · Answer

Don't step over a dollar to save a dime. I just spoke to a guy who didn't get a survey on a project and later found out he built a $38K driveway on a neighboring parcel of land. Title company won't require a survey unless you want boundary coverage. You don't know exactly what you're buying without a survey.

Lydia S. · Answer

Consider asking the Title Company whether they provide survey protection on your Title Insurance policy.  It’s been my experience that they cannot unless you have a survey.

Tom Gimer · Answer

Hire a surveyor... but not to actually do all that work. Pay a fraction of the cost quoted to have him/her review the legal description and confirm the existing park lies well within the boundaries of the land. Let a subsequent buyer spend the $, just like your seller is doing.

Kevin Maher · Answer

I am a appraiser and did a appraisal on a  property that owner didn't own.  It was discovered doing research and then comparing it to what was there.   Another one half the house was on a different lot.  This section was added on over the years.  Shithappens get the survey money well spent or lower price by that amount

Scott Mac · Answer

What if you are encroaching, or someone is encroaching on you.

Also, will your insurance ask for a survey?

In some areas if someone is encroaching on you, and someone gets injured on the encroachment, you can be sued too.

This might be something to ask your attorney about in your area, and to clarify with your insurance company if they want a survey copy.

Good Luck!