Indiana’s patchwork of farmland, wooded acreage and rural real estate offers buyers plenty to choose from. The state’s land market is active year-round nowadays, but ideal inventory varies seasonally. The best way to avoid pitfalls and maximize returns is to do your homework before making an offer.
Indiana land purchasers should walk a property first-hand to traverse acreage, snap diagnostic photos and note easement gotchas difficult to spot remotely. A thorough survey is also important to verify and establish legal boundaries. These nuances could affect where you build, run utilities or fence off property lines. Lastly, a comprehensive title search is essential to catch any claims, liens or unpaid taxes that would complicate transfer.
The state’s heirs and estates are a rich source of valuable acreage, with some parcels offering multi-generational ownership opportunities. However, navigating the process of inheriting or selling a parcel can be complex and time-consuming.
A burgeoning number of families are unable to obtain traditional financing for their home or land purchase, and that’s where the “land contract” has become increasingly popular. According to Amy Nelson, executive director of the Fair Housing Center of Central Indiana, this approach to purchasing real estate has few consumer or realty law protections, but remains attractive to buyers looking for a low initial investment followed by affordable monthly payments.
If you’re thinking of buying a property on a land contract, work with a knowledgeable real estate broker & agent who understands the pros & cons of these sales. Also, make sure to account for additional expenses like clearing trees, running utilities, completing perc tests or addressing boundary issues. Buffer at least 20% of your budget as padding in case these costs exceed your expectations or unforeseen complications arise during inspections.
Another issue with a land contract is that the seller retains legal title until all payments are made in full and a deed has been transferred to the buyer. In the event of default, a land contract owner can evict the buyer in small claims court just like any other landlord and retake the property. This reversionary power is a key difference between land contracts and traditional mortgages and home loans.
While cash purchases are a great way to sell a property, the most successful Indiana land purchasers are patient and prudent. Monitoring diverse listings, researching regulations and presenting a value-based cash offer fast-tracks success. Forego the pratfalls that trip up novice investors, and you’ll quickly turn soil into success.