Inexperienced Buyers
Should Consult an Expert
Question: I own a home in a rural development, and am considering buying 10 acres of land in a nearby development. The seller has a broker, but I'm considering handling the transaction without one. What will I need to take care of if I decide not to use a broker?
Rex: You should reconsider your decision. If you're inexperienced in land purchases, the services of a broker will prove invaluable. The broker will insist that the seller provides a land survey that shows exactly where the land you are buying is located and determines if there are any encroachments. He or she also will order a title report and check with utility companies to confirm that connections will be present on your land. If the broker is familiar with the area and knows of geological problems, he or she will also seek a soil report.
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These services come at a cost, but brokers often negotiate with the seller to be paid half of the selling commission. If your broker can strike a deal like this, his or her services wouldn't cost you anything. The broker also may be able to negotiate a better price or better terms for you, effectively paying for his or her services.
Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Power Tips for Buying a Home for Less," (McGraw-Hill, 2000).
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Rex, Savannah, Ga.
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