Are you considering buying vacant land? Whether you are purchasing property for hunting, a place to build a future home, or even to expand your hobby farm, there are endless possibilities of how you can use your vacant land. One way to acquire this new dream property is through an auction. There are several auction companies throughout Michigan and Wisconsin that sell vacant land. If you are looking to purchase your vacant land through a land auction, here are some things to think about.
What do I need when buying land through an auction?
Before heading off to an auction, or logging into the auction website, work with a loan officer to get a prequalification and to help determine what your budget is going to be. When meeting with a loan officer there are a few things that you should come prepared with including financial statements, tax returns, and verified asset statements. This process will help instill confidence knowing you are going to purchase property that fits comfortably within your budget!
How can I buy land through an auction?
All auction companies have a set of rules and guidelines you have to take into consideration when buying vacant land. Some companies are cash only, or others require a closing within a certain amount of days. You’ll also want to know if the company requires an earnest money deposit, meaning if the auction requires you to put a certain amount down before closing to show that you are serious about the transaction. Earnest money deposits go towards your money down at closing as well. Making note of each of these guidelines ahead of time will help provide you the clarity to make the process easier for you to enjoy.
How can I be prepared for a land auction?
Before purchasing your desired property, do some research in the area, and if you are interested in building on the land, you should also double check the rules and regulations that come with potentially building. What are the specific permits you will need? Does the township have building requirements? Is the property accessible from the road? Do you need a legal easement to get to it and if so, are you working with a lender that will finance land-locked property like GreenStone does?
If you are looking to use the property for recreational use or doing some hobby farming, make sure to understand what is the average price per acre is in the area, how much is farm rent, and are there any agricultural affidavits or forestry to take into consider?
Having the answers to these types of questions will help you know if it is the right property for you!
Do I need to visit the property beforehand?
Although it is not required to visit the property before you buy it, it is suggested. What better way to get to know the area than to see it firsthand? Besides, it will be great to imagine where you might want to put your tree stand or build the cabin! If you are looking to use the property for farm ground, it will be valuable to see what the current state of crops looks like, what is planted there currently, how well they are growing, and are there any wet spots. This type of information will be important determining factors into whether or not you should purchase the property.
There are a few extra things to consider when purchasing vacant land when through an auction like auction guidelines, knowing your budget, and property research. Being prepared by doing some research and working with a lender will help you feel more confidence in the experience and make the process easier to purchase your dream property!
GreenStone’s team of experienced experts are ready to finance your land auction find. Find our recreational land loan options here.
