If you own land, you've probably gotten letters, postcards or texts from companies offering to buy it. Some are real buyers. Some are middlemen who never plan to buy it themselves. Here's how to tell the difference.
The middleman problem
Some companies put your land under contract at a low price, then try to sell that contract to another buyer for more. If they can't find someone in time, they may back out, ask to lower the price, or let the contract expire. Meanwhile, your land has been tied up for weeks or months.
That's not always illegal, but you deserve to know who you're dealing with.
Questions to ask any land buyer
- Are you buying this with your own money? A real buyer will say yes.
- Will you assign or sell this contract to someone else? Get the answer in writing.
- What title company will we close with? A legit buyer uses a licensed title company and is happy to tell you which one.
- How much earnest money will you put down? Earnest money held by the title company shows the buyer is serious.
- Can you show me land you've bought and closed? Real buyers have a track record.
- How long is the due diligence period? Very long inspection or feasibility periods can be a sign they need time to find someone else.
Red flags
- Pressure to sign today
- Vague answers about who is actually buying
- A contract that lets them walk away for almost any reason with no cost
- Asking you to pay fees up front
- No clear title company
Green flags
- A local or regional buyer who will talk to you directly
- Clear answers and a straightforward contract
- A licensed title company handling the money
- A track record of closed deals
Where 77 Land Group stands
I buy land myself with my own money. I don't flip contracts. I close through a licensed title company and pay the standard closing costs, and I've bought and closed over 3,300 acres since 2022. Ask me anything on the list above.
Request a free cash offer or call or text Noah at 530-829-8258.
