Cheap Land and How to Find It
Cheap land or anything else is not always best of course, but in this case we are discussing getting a good deal on land.
Utah Tax Sale
In a Utah Tax Sale the delinquent tax property is sold at public auction. The county keeps the amount owed for delinquent taxes, plus penalties and interest, any remaining money is forwarded to the owner.
You can attend the tax sale auction to buy property. You need to research the property ahead of time, to find out the approximate value, any title problems that the property might have (that aren’t extinguished by the tax sale), and other details such as legal access, water rights, etc.
Many people get an excellent deal on property at a tax sale. Others pay several times what the property is worth, so do your research to get the best price possible.
Another option is to contact the owner before the tax sale and make them an offer on the property. You will avoid the auction itself and often pay less than you would at the auction. A county waits until there are several years of delinquent taxes before selling the property. You can contact the owner before this time and often get a good deal.
Foreclosures may be the best for how to buy cheap land. There are three basic stages in a foreclosure.
During the default stage the property has not been foreclosed, but the seller has been notified that a foreclosure is in progress. During the early part of this stage the foreclosure can be automatically stopped by paying the overdue amount or a negotiated amount. You can contact the owner and offer to buy the property. Owners in foreclosure can be very motivated to sell.
2. Foreclosure Sale
If the delinquent amounts are not resolved during the default phase the property goes to a foreclosure sale. Anyone can bid on the property at the sale. Contact the company handling the foreclosure and ask what their requirements are.
Similar to tax sales, you need to do your research before the foreclosure sale. Know what the property is worth before bidding.
3. Foreclosed Property
The lender usually receives the property after the foreclosure sale for a variety of reasons. Few people show up at foreclosures and often the minimum bid is more than the property is worth.
The Lender is motivated to sell the property quickly and will entertain any reasonable offer. Contact them and make an offer.
Assume The Existing Loan
Although this is more difficult to do, it can be an excellent way to buy land. The current owner may be tired of the property and willing to sell it for little or no money, if you will assume the payments. This only works if the property is financed by an individual. Banks don’t usually allow anyone to assume their loans.
This method of buying cheap land can be combined with the tax sale or foreclosure methods above. You can contact the owner, pay the delinquent amounts, and take over the payments. Use an attorney or title company so the proper paperwork is filed, and the land is properly transferred to you.
Bankruptcies are public. You can contact the court or attorney handling it and offer to buy property involved in the bankruptcy. You will need to research what property is owned by the person filing bankruptcy.
This method is more difficult to use than the others, but can be an excellent way to buy property below market value. There are many methods to learn about how to buy land cheap. The above are just a few.
Buying Real Estate at Tax Sale. How to buy Real Estate at a tax sale. This is a great way to get a good deal on property, but auctions are a buyer beware place. Know before you buy.
Buying Real Estate at Foreclosure Auctions. Buying Real Estate at Foreclosure Auctions. To be successful you need to know the property, its value, and any liens or other title problems.