Offer, Due Diligence & Closing

Important: This page is intended to help you understand the general real estate process, but it does not replace your Purchase and Sale Agreement or any other contract you sign. Every transaction is different, and the terms of your written agreement control. Always read your contracts carefully, ask questions about anything you don't understand, and pay close attention to all dates, deadlines, and obligations.

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Receiving an Offer

Receiving an offer is exciting, but the price is only one part of the decision. With land, the buyer may also need time to confirm whether the property works for what they intend to do with it, so the terms of the offer can be especially important.

We'll look at the entire offer, including price, financing, earnest money, due diligence, contingencies, closing date, concessions, and anything else the buyer has included.

Looking Beyond the Purchase Price

The highest offer isn't always the best offer. A buyer offering a little less with stronger terms may sometimes be in a better position than a higher-priced offer with a long list of contingencies or uncertainties.

I'll walk you through the offer, point out anything that deserves a closer look, and help you understand the strengths and potential drawbacks before you decide how you'd like to respond.

Buyer Financing

If the buyer is financing the purchase, we'll review the type of financing they're using and any lender documentation included with the offer. Land financing can work differently from financing a home, and lenders may have requirements involving acreage, access, appraisal, utilities, or the type of property being purchased.

A pre-approval or lender letter tells us the buyer has taken steps toward financing, but it isn't a guarantee that the loan will ultimately be approved.

Earnest Money

Earnest money is money the buyer deposits after the contract becomes binding to show their intention to move forward. The amount, deadline, and party holding the earnest money will be stated in the contract.

If the transaction closes, the buyer receives credit for the earnest money at closing. If the contract terminates, what happens to it depends on the terms of the agreement and the reason for termination.

Due Diligence & Contingencies

The due diligence period gives the buyer time to take a closer look at the property and decide whether it works for what they intend to do with it. During that period, the buyer may terminate the contract for any or no reason, as long as they do so within the time and according to the terms stated in the contract.

Land offers may also include specific contingencies for soil or septic suitability, survey, an existing well, financing, or other property-specific concerns. Those contingencies can extend certain protections beyond the general due diligence period.

We'll review each one so you understand what the buyer is asking for, how long the protection lasts, and what it means for you as the seller.

Seller Concessions

A buyer may ask you to contribute toward closing costs or another expense as part of the offer.

Rather than looking at a concession by itself, we'll look at how it affects your estimated proceeds and the offer as a whole. Sometimes a stronger purchase price with a concession may work better for you than a lower offer without one.

Accepting, Rejecting or Countering an Offer

Once we've reviewed the offer, the decision is yours. You can accept it as written, reject it, or make a counteroffer.

A counteroffer allows you to propose changes to the price, closing date, concessions, due diligence period, contingencies, or other terms. Negotiations may go back and forth more than once before everyone reaches an agreement, or decides not to.

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Under Contract

Once you and the buyer have agreed to the terms and everyone has signed, you're under contract. The Purchase and Sale Agreement becomes our roadmap to closing, with responsibilities and deadlines for both sides.

Important Dates & Deadlines

Depending on the agreement, important dates may include earnest money, due diligence, soil or septic, survey, well, financing, appraisal, and closing.

I'll keep track of the contract dates that affect you and stay in communication with the buyer's agent as the buyer works through the requirements in the contract. If the buyer requests additional time or another change to the agreement, we'll discuss it before you decide whether to agree.

The Buyer's Due Diligence

Once the contract becomes binding, the buyer may begin confirming the condition, use, and suitability of the property. Depending on their plans and the contract, that could include reviewing restrictions and access, checking county or community information, talking with a builder or ACC, or confirming utilities and other property details.

Land doesn't usually generate the same type of repair negotiations that come with selling a home, but the buyer may still ask questions, request information, or raise a concern during due diligence. If something comes up, I'll review the request with you in the context of the contract before you decide how you'd like to respond.

Property-Specific Contingencies

Depending on the offer, the buyer may also be completing work under a specific contingency. That might involve a soil evaluation, survey, testing an existing well, or another item that needs additional time beyond general due diligence.

The contract language and deadline determine the buyer's rights if the results aren't satisfactory or the work can't be completed as expected. If a question or issue comes up, we'll look at the contingency and the buyer's request before you decide how you'd like to respond.

Access, Easements & Property Information

The buyer may ask for information about access, easements, restrictions, HOA or community documents, utilities, previous soil work, surveys, or other records you have for the property.

I'll gather what is available from you and the property records we have. Recorded matters may also be identified through the attorney's title search. If a legal question comes up about title, access, easements, restrictions, or another recorded matter, the buyer and seller can address that through the closing attorney.

Financing & Appraisal

If the buyer is financing the purchase, their lender may order an appraisal and continue working through underwriting and other loan requirements.

Land can sometimes take more work to appraise because there may be fewer truly comparable sales nearby. Most of the financing process happens between the buyer and lender, but I'll stay in communication with the buyer's agent and keep you informed of meaningful developments that affect the transaction.

If financing or the appraisal creates an issue, we'll review the contract and the options available before you make any decisions.

The Closing Attorney

Within the first few days after the contract becomes binding, the closing attorney will typically reach out to you for information and may ask you to complete a seller information form or provide documents they need for the closing file.

Take care of those requests promptly. The attorney will be working on the title search, legal description, easements, access, restrictions, liens, payoff information when applicable, and the closing documents. The sooner they have what they need from you, the sooner that work can move forward.

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Preparing for Closing

Land sellers usually have fewer physical preparations before closing than someone selling a home, but there are still a few things worth taking care of before ownership changes.

Leave the Property as Agreed

If you've stored equipment, trailers, building materials, personal belongings, or anything else on the property that isn't included in the sale, make sure it's removed before closing unless we've agreed otherwise in writing.

If there are gates, locks, access devices, keys, or other items the buyer will need, gather those ahead of time so we can make sure they reach the buyer.

Don't Make Last-Minute Changes

Once you're under contract, it's best not to make significant changes to the property without discussing them first. Clearing trees, grading, changing access, removing improvements, or doing other work could change what the buyer agreed to purchase.

If something needs to be done before closing, let me know so we can make sure it doesn't create an unnecessary issue with the buyer or the contract.

Utilities, Gates & Services

If the property has active utilities, a well, gate service, HOA account, or another service associated with it, we'll determine what needs to remain in place through closing and what should be transferred or discontinued afterward.

Most vacant land won't require much here, but it's worth checking before closing rather than discovering afterward that something was overlooked.

Your Settlement Statement

Before closing, you'll receive a preliminary settlement statement that gives you a breakdown of the financial side of the sale and your anticipated proceeds.

It will show the purchase price along with applicable credits, prorations, brokerage compensation, closing expenses, loan payoffs when applicable, and other charges or adjustments.

Review it when you receive it. If something doesn't look right or you have a question, call me or the closing attorney so it can be addressed before closing. The preliminary statement is there to help prevent surprises at the closing table.

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Closing

You've made it through the offer, due diligence, contingencies, deadlines, and everything else that comes with selling land. Now we're at the closing table.

Closing Day & Documents

Closing is generally straightforward once everything leading up to it has been completed. The closing attorney will go through your documents with you, explain what you're signing, and give you time to review them and ask questions before you sign.

If you can't attend in person, let me and the closing attorney know well in advance. Depending on the circumstances, another signing arrangement may be available.

Your Sale Proceeds

Your final settlement statement will show how your proceeds are calculated after mortgages or other liens, closing expenses, prorations, brokerage compensation, and other agreed-upon amounts are deducted.

The closing attorney will also provide instructions for how your proceeds will be delivered.

One very important warning: Wire fraud is real. Never rely on an email, text, or phone call telling you that wiring instructions have changed. If anything seems unusual, stop and contact the closing attorney directly using contact information you already know is legitimate.

Access & Possession

If there are gate remotes, keys, access codes, or other items that belong with the property, we'll make sure there's a plan for getting them to the buyer.

Exactly when possession transfers depends on the terms of the contract. In most land transactions, that will be at closing unless the agreement says otherwise.

Once the documents are signed, the closing attorney will step away to complete the transaction, disburse the funds, and process the appropriate documents for recording and distribution. When the attorney returns with the signed copies for the parties and confirms the transaction is complete, ownership has transferred according to the terms of the agreement.

You've officially sold your land.