Middlesex County, Ontario | Don't let the real estate agent intimidate you. They might be playing games or they might be busy. Don't be too too polite to them, I mean be courteous but don't let them walk all over you. When they apologize for not calling you back don't right away say "oh thats ok," because its not ok. Be professional and completely honest with them, but its ok to say "I'd rather not answer that right now."
Ask about any easements or mining rights. Ask what property taxes are. Taste the water in the house. Request yield and tile data. Just ask any questions you want.
The real estate agent works for the seller and makes commission; so DO NOT TELL HIM WHAT YOU THINK YOU WILL OFFER OR WHAT ITS WORTH. The only thing this guy needs to see numbers wise is your actual offer. Don't give him any inside info because he will milk you for it and use it against you.
Eventually you would make a conditional offer based on ability to find financing. Basically "I will buy this for 1m dollars if I can get financing, do you accept or no?" Seller will accept, deny, or counter your offer. Don't feel bad about a deny, its really the same as a counter without numbers. If the numbers are right the seller will likely counter with the condition that you don't have first right, meaning that while you are running around trying to find financing they can sell to anyone else.
You should sit down with a banker and see what you can offer. This decreases the time that someone else can snatch the property from you while your offer is conditionally accepted. Ideally you should have a complete business plan with accurate cattle/crop budgets. KNOW YOUR COSTS OF PRODUCTION. I have a 100? page business plan and another 60? pages of crop and livestock budgets in a big binder that I keep up to date. Kinda sucks but thats what it takes. Seeing a great property is great motivation for sitting down and doing the plan/budgets.
Around here if a property is listed with an agent, and you show up with your own agent, they end up splitting the commission. I don't know if this is the law here or just a regional thing. If you have a real estate agent (family friend maybe) you trust, take him along. It won't cost anything extra, he'll know what questions to ask, and you can't get better advice. Assuming the split commission thing happens where you are. |
Another stupid question about land purchasing.
