The Munn Brothers

At Windermere Hood Canal, Quilcene WA

Most land is purchased with a Seller providing the financing. There are two ways to do this, with a promissory note & Deed of Trust or a Real Estate contract. The most commonly used is the note and D. O. T. With a D.O.T. the note terms are negotiated between the Buyer & Seller. Typically, the minimum down is 25% with the interest rate now about 8% +/-. The monthly payments are determined by ammortizing the balance over 20 or 30 years. A date for a cash out in the near future can sweeten the deal for the Seller. They usually want as much cash as soon as possible. This is unless they can’t beat the interest rate, secured by real estate when they receive their proceeds.

It costs the Seller nearly 14% to sell the property (land) so they need to at least have this amount down or it will cost them money to sell the property. It also shows the financial ability of the buyer. The less down the more risk the seller may be open to.

With an all cash purchase of raw land, you can typically reduce the purchase price by 10%.

There also is the possibility of a land loan from a mortgage company. They require a potable water source, an approved septic design, power & phone nearby. They need the property to be marketable if the buyer happens to default. The interest rates are slightly higher and short-term cash out is typical. A good credit rating and an appraisal are required as well as the usually paperwork and loan fees.

Selling

For determining a market price for a property to sell, we perform a comparative market analysis. With this we search like kind properties that have recently sold in the area. In rural locations such as South Jefferson County, an experienced agent is able to draw from experience to conclude the best prices. With the unique properties we deal with, it can be hard to “match apples to apples” so a working knowledge of the immediate area is important. This applies to homes and land in our area.