A Step by Step Guide for Buying Land with Cash

By: ROS Team

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Buying a house is an achievement, but constructing one is the dream. While many people end up buying a house, only a few can see the dream through into reality. Why is this so? Well, in most cases, it is due to finances. In other cases, the dream doesn’t become a reality because people lack information.

A step by step guide for buying land with cash

One may explore various ways of arranging finances for a house. Here is all the information you need to know about buying land with cash.

1- Finding the Location:

Buying land is not going to be a one-visit operation; it’s unlikely that you will find exactly what you want at first-pass, especially if you’re taking on the task without the professional assistance of an agent. Bear in mind that simply finding a location could be a long-term project.

Here is How:

  • First, figure out how much you can afford to allocate for the living space of your family. You should also factor in closing costs like agent’s commission (if you hired an agent), costs associated with preparing the land for construction such as adding electricity and water to your home site. Don’t forget to factor in costs associated with building the home.
  • Once you resolve the financial issues, you’ll want to find land suitable for your new home. For that purpose, consider looking for available land in newspaper ads and real estate publications.Finding the location
  • You may also explore online platforms where commercial and residential land is listed for sale. You can find available land on general real estate websites as well.
  • If you still aren’t finding land it may be worth hiring an agent to assist.
  • Sometimes the government initiates special residential projects on accessing land, so check government websites like real estate sales for more information.
  • If you know someone personally who is interested in selling their land, talk to them about it.

Hopefully, by exploring these options, you’ll be successful in finding land for your next home.

2- Get Familiar with Zoning Laws:

There are other details that you’ll need to know before buying land. Research the local zoning laws so you’re familiar with any building restrictions ahead of time.

There are different laws governing residential and commercial land, so be sure to focus on the laws related to residential land. You can find out more about zoning laws for given areas from city or county government offices.

3- Get the Cash:

When you buy land with cash, the seller is going to ask for proof of funds. Prepare your financial documents in advance to ensure the process goes smoothly. The seller will also be interested to know whether you can cover the closing costs.

The best way to counter this is to keep hardcopy evidence of your financial information. You can arrange to get an official letter from your banking institution that states the number of funds in your account(s).

4- Make an Offer:

It’s now time to make an offer. It’s best to make your offer in writing.

Before making an offer, make sure you’ve asked the owner any questions you may have about the land. Once you’re comfortable, proceed with making the offer.

When writing an offer, include information such as the price of the land you are offering, the location of the land as well as any contingencies.

Make an offer

Adding a contingency is a way to protect yourself from unforeseen circumstances. Contingency means that the deal is off if anything unsatisfactory turns up later. It also helps ensure you can get your earnest money refunded.

5- Pay Earnest Money:

If the seller accepts your offer, you’ll be required to pay the seller earnest money. Earnest money is a small portion of the total cost that you pay to show that you mean business and are serious about buying the property.

Earnest money is kept in an escrow account. If you walk away from the deal for reasons not mentioned as a contingency, you are likely to forfeit your earnest money.

6- Get a Survey:

This is an important step that many people underestimate. Before closing on the deal, you need to get the land that you plan to buy surveyed. Hire a professional to measure and mark the corners of the land. Make sure you are getting the space you are paying for.

Get a survey

7- Confirm the Title:

Equally important as getting a survey is making sure the title to the land is clear. Does the seller have complete authority over the land to transfer or sell it? Are there any restrictions or mortgage due on the land?

You might have to spend a few dollars on the title search but it is worth the investment to avoid issues later.

8- Tour the Land:

Before you move on to close the deal, take a final tour of the land. Make sure to match the findings of the survey and title insurance.

Confirm all the facts and see that all contingency conditions are met. This is your last chance to check all facts before closing on the property.

Close the deal

9- Close the Deal:

You’ll have to sign the purchase agreement to close the deal officially. For this purpose, If you did not hire an agent earlier, you might need the services of the real estate attorney at this stage; he or she will prepare the official documents and will confirm a clear title.

The agreement will contain information such as the final sales price and payment method. Both the buyer and seller have to sign the purchase agreement.


This is how to buy land for cash. It is always better to check off every box to make the whole process runs smoothly.

It bears repeating that buying land in cash is not a short-term project; allocate enough time to do it the right way.

Related Article:

Buy Land With Joint Property Ownership?
What is a Land Survey, and How Much Does It Cost?