Offer, Due Diligence & Closing

The Offer

You've found a property you want to pursue. Now we need to put together an offer that protects what matters to you while still giving the seller something they're willing to accept.

Making an Offer

Price matters, but it isn't the only part of a land offer. We'll also look at the closing date, earnest money, due diligence period, financing, contingencies, seller concessions, and anything else that needs to be addressed in the Purchase and Sale Agreement.

I'll help you think through the entire offer before you sign it, including which terms are important to your plans for the property and where we may have room to negotiate.

Counteroffers

Counteroffers are a normal part of many real estate transactions. The seller may accept your offer, reject it, or propose changes via a counteroffer.

Price is often part of the conversation, but the seller may also counter the closing date, earnest money, due diligence period, contingencies, concessions, or other terms. We may go back and forth more than once before everyone reaches an agreement, or decides not to.

Seller Concessions

A seller concession is something you ask the seller to pay for or provide as part of the agreement. That might include a contribution toward closing costs, a credit, or another negotiated expense.

Sometimes asking for a concession makes more sense than simply asking for a lower purchase price. I'll help you look at how the request affects the offer as a whole rather than treating each number separately.

The Due Diligence Period

The due diligence period gives you time after the contract becomes binding to take a closer look at the property and decide whether you want to move forward. During this period, you can terminate the contract for any or no reason, as long as you do so within the time and according to the terms stated in your contract.

When we're preparing the offer, we'll consider how much time you may realistically need to confirm the condition of the property, make calls, review information, schedule inspections or testing, and get answers to the questions that matter to you.

Earnest Money

Earnest money is money you deposit after the contract becomes binding to show the seller you're serious about moving forward. The amount, deadline, and party holding the earnest money will be stated in the contract.

If everything goes as planned, the earnest money is credited back to you on your settlement statement at closing. If the contract terminates, what happens to it depends on the terms of the agreement and the reason for termination.

Contingencies

Some inspections, testing, and other due diligence work can't always be completed within a short due diligence period. Surveyors, soil professionals, well contractors, and lenders all work on their own schedules. When something is important enough that you need protection until it can be completed, we may address it with a specific contingency.

Common land contingencies may include financing, survey, soil or septic suitability, and testing of an existing well. These can require specific contract language describing what needs to be completed, the protection you have if the results aren't satisfactory, and enough flexibility to allow for realistic scheduling, completion, and review of the results.

If you can confirm a professional's availability before making the offer, we'll have a better idea of what timing is realistic. I'll explain the contingency and its deadlines before you sign the offer.

Financing & Lender Requirements

If you're financing the purchase, talk with your lender before we choose the closing date. Land loans can work differently from traditional home mortgages, and your lender may have requirements involving acreage, access, appraisal, utilities, or the type of property you're buying.

Your lender will have the best idea of how long they need to complete underwriting and appraisal work, so we'll use that information when setting realistic contract dates.

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Under Contract

Congratulations, your offer has been accepted. Now the Purchase and Sale Agreement becomes our roadmap to closing.

This is usually the busiest part of a land purchase. You'll be working through due diligence, contingencies, financing, and the other requirements that apply to your particular property.

Important Dates & Deadlines

Land contracts can have several deadlines packed into the first few weeks, including earnest money, due diligence, soil or septic, survey, well, financing and appraisal deadlines, and the closing date. Once the contract becomes binding, get any inspections, testing, surveys, or other contingency work scheduled promptly. The earlier you start, the more room you have if someone is booked or an unexpected issue comes up.

Keep track of your contract deadlines and stay in contact with the professionals you've hired. I'll also be working in the background and checking in for updates, but we're dependent on third-party response times, and contractors typically prefer to communicate directly with the person who hired them. Keep me updated on your progress, and I'll do the same. If timing starts to become a concern, I want to know before a deadline expires.

Due Diligence & Research

Do Your Research. Due diligence is about confirming the condition of the property and whether it will work for what you want to do with it. This is the time to make calls, request information, review documents, schedule inspections or testing, and get answers to the questions that matter to you.

Walk the Property With Your Builder. If you're planning to build soon, your builder's opinion can be especially helpful. A site visit may identify costs such as a longer driveway, retaining walls, tree removal, site preparation, drainage, or construction access and can help the builder give you a more realistic idea of what it may cost to build your plan on that lot.

Walk the Property With the ACC. If the property is in a community with an Architectural Control Committee (ACC), ask whether someone from the ACC will walk the property with you. This is a good time to ask whether trees may be removed to open a view, how your home may be oriented, where setbacks apply, and whether your plans fit the community requirements.

You'll generally contact your builder and the ACC directly to schedule these visits. If an on-site meeting isn't available, try to get your questions answered by phone or email. By the end of due diligence, you should have enough information to decide whether you want to move forward.

Soil & Septic

If you plan to build a home that will use a septic system, soil suitability may be one of the most important things you confirm. Sometimes a previous soil evaluation or septic information is already on file with the county, so that's a good place to check first.

If nothing is on file, the existing information doesn't answer your questions, or you simply want additional reassurance, you may hire a soil professional or work through the appropriate local process to evaluate the property for the septic system you need. Because scheduling can vary, a soil contingency should allow enough flexibility to get the work completed and review the results before the contingency expires.

Survey

A survey can answer questions that photographs, plats, mapping programs, and visible markers simply can't settle. It may confirm boundaries, acreage, road frontage, easements, access, encroachments, or how a planned homesite relates to the property lines.

If your contract includes a survey contingency, contact a surveyor promptly. Surveyors can be booked well in advance, which is why the contingency should allow realistic time and flexibility for scheduling, completion, and review of the results.

Well Inspection & Testing

If the property has an existing private well, it's a good idea to have it tested. On vacant land, there may be no pump or power available, so testing can require a well contractor with the specialized equipment needed to evaluate the well.

Depending on what you want tested, that may include the well's operation and flow rate. If your contract includes a well contingency, confirm that the contractor has the capability and availability to perform the testing within your timeframe and get the appointment scheduled promptly.

Access, Easements & Restrictions

We'll also look at available information affecting access and use of the property, including private roads, shared access, easements, restrictions, setbacks, or encroachments. The seller may provide some of this information, recorded easements may appear in the deed, and additional matters may be identified through the attorney's title search.

I'll gather what is available from the seller, deed, and property records. If that information raises a legal question about access, title, easements, restrictions, or another recorded matter, you'll review it with the closing attorney.

Utilities

Utility service isn't always obvious when you're standing on vacant land, especially where services are underground. Depending on your plans, you may want to confirm electric service, internet availability, well or septic requirements, and whether public or community water or gas is available.

The seller may provide contact information for the current service providers. If not, I likely know who serves the area and can get you the appropriate contacts. If public or community utilities are available, you'll also want to ask about connection requirements, tap or connection fees, and what it will take to extend service to your homesite.

Your builder may also be able to help answer some of these questions, particularly when it comes to getting utilities from the road or existing service location to the home and how that may affect your building costs.

Financing & Appraisal

If you're financing the purchase, stay in regular contact with your lender throughout the transaction. I recommend checking in at least weekly, even if you haven't heard that anything is needed. Respond promptly when the lender requests documents or information and keep track of the financing and appraisal deadlines in your contract.

The appraisal is part of the lender's process and helps them determine whether the property's value supports the loan. Land can sometimes take more work to appraise because there may be fewer truly comparable sales nearby. If an appraisal or financing deadline is approaching and you haven't received an update, contact your lender to find out where things stand.

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 buyer information form. Take care of that as soon as possible. The attorney needs your information before they can begin ordering the title search and moving the closing process forward.

The attorney will perform the title search, prepare the closing documents, coordinate with your lender if you're financing, and address recorded matters such as legal descriptions, easements, restrictions, access, or liens. If they ask for additional information or documents along the way, respond promptly.

One very important warning: Wire fraud is real. Never send money based 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.

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The Closing

Most of the decision-making is behind you. Once your contingencies are satisfied, financing is ready if applicable, and the attorney has completed the title work, we're headed to the closing table.

Your Settlement Statement

Before closing, you'll receive a preliminary settlement statement that gives you a breakdown of the financial side of your purchase. It will show the purchase price along with the credits, prorations, closing costs, lender charges if you're financing, brokerage compensation when applicable, and other adjustments that make up your side of the transaction.

Most importantly, it gives you a chance to see where the numbers came from and how much money you'll need for closing. If you see something you don't understand or that doesn't look right, call me or the closing attorney so we can get the question answered or a correction made.

You don't want surprises at the closing table, so take a few minutes to review the preliminary statement when you receive it. The final settlement statement will reflect any corrections or final adjustments.

Closing Day & Documents

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

If you're financing the purchase, you'll have additional loan documents as well. If you don't understand something, ask before you sign it. If you can't attend closing in person, let me and the closing attorney know as early as possible so another signing arrangement can be discussed if available.

You're the Owner

Once the closing documents are signed, the closing attorney will complete the transaction by disbursing the funds and processing the appropriate documents for recording and distribution to the county, lender, and other parties involved. When the attorney returns with signed copies for the parties and confirms the transaction is complete, ownership has transferred according to the terms of the agreement. Congratulations...the land is yours.

If the property is in a gated community, there may be gate access, HOA information, keys, remotes, or other items you'll need as the new owner. I'll help make sure you know what needs to happen next.

And then comes the fun part: figuring out what you're going to do with it.