buying/selling vacant land out-of-state

buying/selling vacant land out-of-state

Irvine, CA · Member since 2017 · 23 posts · 1 vote

I saw a few Craigslist ads selling vacant land in other states.  Is buying/selling land out-of-state any different than if that property was in the same state?  I understand that in some states, there needs to be a witness when the seller signs the contract.  Other than that, is the process of buying/selling land the same for all states?  Thanks.

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Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y

@Katy Nguyen I don't know if I can add value if this is purely a process question.  However, buying land out-of-state can have more than a few challenges.  Vacant land always ends up on Craigslist and most of it reminds me of those NRPI ads with Erik Estrada.  If you haven't seen them, look them up, NRPI was based out of Irvine and most of the team went over to create Auction.com  Basically, because you're out of state and have little idea as to what you're buying it can be, well, troublesome.  As @Wayne Brooks pointed out: Is it buildable, in a floodplain, has it had a recent perc test, how close is it to a major road, etc.  It's definitely one of those buyer-beware situations.  Most of the time what I've seen (in the one area I know a little about raw land) people reselling are looking to get $7K/acre when the locals would only pay $4K-$5K/acre.  Someone out of state (like from Irvine or San Diego) that doesn't know what raw land trades for can get burned.  You start mixing comps of land that's farmable vs. land with rocky outcroppings and pretty soon you don't know what the heck you're buying!  Anyway, I'm rambling now and it doesn't specifically address "getting the transaction" closed but maybe it will lend perspective to anyone looking at raw land on Craigslist.   

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  • Philadelphia, PA · Member since 2016 · 73 posts · 28 votes
    9y

    It can differ significantly from state-to-state. 

  • Irvine, CA · Member since 2017 · 23 posts · 1 vote
    9y

    What are some common differences that I need to be aware of?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y
    Most importantly, the current land owner knows more about the value of His property than you do......buildable or not, title issues, local market, etc. Generally, if you pay more than any locals are willing to pay, it's probably not a good deal.
  • Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Katy Nguyen I don't know if I can add value if this is purely a process question.  However, buying land out-of-state can have more than a few challenges.  Vacant land always ends up on Craigslist and most of it reminds me of those NRPI ads with Erik Estrada.  If you haven't seen them, look them up, NRPI was based out of Irvine and most of the team went over to create Auction.com  Basically, because you're out of state and have little idea as to what you're buying it can be, well, troublesome.  As @Wayne Brooks pointed out: Is it buildable, in a floodplain, has it had a recent perc test, how close is it to a major road, etc.  It's definitely one of those buyer-beware situations.  Most of the time what I've seen (in the one area I know a little about raw land) people reselling are looking to get $7K/acre when the locals would only pay $4K-$5K/acre.  Someone out of state (like from Irvine or San Diego) that doesn't know what raw land trades for can get burned.  You start mixing comps of land that's farmable vs. land with rocky outcroppings and pretty soon you don't know what the heck you're buying!  Anyway, I'm rambling now and it doesn't specifically address "getting the transaction" closed but maybe it will lend perspective to anyone looking at raw land on Craigslist.   

  • Irvine, CA · Member since 2017 · 23 posts · 1 vote
    9y

    I'm sorry for not making my question clear. Let's say my friend gives me a FSBO purchase agreement she used to purchase a lot in California. If I used that same purchase agreement to buy a lot in, say Seattle, is the process of purchasing that lot (in a FSBO scenario) the same? As mentioned, I know in certain states, they require a witness in a signing of a deed, but Washington is not one of them. Other than this issue, is the PROCESS of buying a vacant lot in a out-of-state scenario the same as if I were to buy a vacant lot in California?

  • Investor · Irvine, CA · Member since 2009 · 259 posts · 183 votes
    9y

    Hi neighbor, 

    I have found that closing requirements will differ not only from one state to another but from one title/escrow company to another. 

    Just call a title agent in the state you are buying/selling and ask.

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