Who here knows about buying land? (negotiating, agent, mortgage, price)

[kitty3]

Hi everyone- I am looking to buy 5 acres of semi-wooded, rural land to build on. There is a lot I am interested in that has been listed over 6 months, and the price has not dropped. Does land normally take a lot longer to sell than a land with a house on it? Also, how much lower should my offer be if I pay cash, rather than financing?
thanks-

[Silverfall]

Yes land typically takes longer to sell, and your agent should help you figure out what to offer. It has been my experience with large parcels like that, that owners don't give very much, not out here in Oregon anyway.

For Oregon, I wouldn't expect to see a parcel like that drop a price for 9-12 months.

[oldmanbob]

Kitty3, land like any property, usually has some room to negoiate, and you will need to have it surveyed , and have a perk test done, to see if it will accomadate a septic and drain field. If the listing price was done with the local comps, then cash is no different than you having a mortgage, as it spends the same to the seller. Cash would make it happen faster, but be sure and know what your buying. Ask if anyone has done a geo search, as you want to be sure you can use it, and not full of rocks, and or sinkholes or such. Let us know the asking price, and have you researched it to the area. Good luck.

[WendyK]

Six months for land is not that long to be on the market. The thing to remember about negotiating on land is that the seller often has minimal expenses related to keeping the property. Property taxes are lower with no improvements, there are no utility costs, and no insurance. You may have room to negotiate if the seller has monthly payments they're making, but if it's owned free and clear they may not be as willing to come down much off of their price.
You will find it difficult to get financing for vacant land in the current market anyway, so sellers expect cash buyers or if there is financing involved, it would be a construction/perm type loan.