My partner and I are buying some unimproved land that is attached to the seller’s property. The seller owns 15 acres and is selling us six. We are able to pay the total amount in cash. The seller says that is not his preference and wants to go through a bank. I have bought property upfront before, without taking out a loan (I live in a low cost of living area). Why might the seller not want us to buy it outright? Are there tax incentives I don’t know about, or is that state-dependent? I probably don’t even know the right questions to ask, but I’m hoping someone here can help me understand, and help me ask the right questions. I have a mortgage on the house I currently own, my partner has a mortgage on the house he owns, and the other properties I own (by myself), I paid for outright.
This is the first time I’ve bought any real estate with a partner and I want to make sure I’m well informed.
The seller likely wants a paper trail to verify your funds are legitimate. A title company or real estate attorney can handle a cash sale with a title search and proper exchange, so no bank loan is needed. I’ve seen this work smoothly, even when people are buying new homes in Miami. Just provide proof of funds and use the right legal channels.
