As a real estate agent, you make recommendations daily to your clients about homes, neighborhoods and other real estate dealings. But if you’re dealing with a client who is purchasing or selling land, the conversation changes to a degree. Whereas it used to be much easier to acquire land, these days it takes a lot more work and money to accomplish. There are also a lot of rules to contend with, which is likely why your client came to you in the first place.
Here’s a look at three areas that these kinds of clients will need more information about, and how to best advise them.
CC&R: Covenants, conditions and restrictions can specify just about anything, and a good real estate agent will review these for any neighborhoods in which they sell. They stipulate things like what you can park in your driveway, what kind of fencing you can put up, and more. When you’re working with your land-buying or selling clients, make sure you sit down and discuss the CC&R’s with them. There may be restrictions on renting out the property, and the CC&R’s will discuss the ramifications if any of the rules are broken.
ARC- Architectural Review Committee: ARC’s, or architectural review committees, are put in place to ensure your neighbor doesn’t paint his home bright turquoise with mustard trim and maroon windows. Generally speaking, ARC’s will only be a nuisance if you’re building a new home in a new community. While your job as a real estate agent technically ends after your client purchases a lot, good form is to discuss the ARC ahead of time and prepare them for what might lie ahead.
Development Costs: It’s a good idea to sit down with your clients who are buying land and have an honest conversation about what they plan to do with it. As the real estate expert, you should check the zoning forward and backward. Additionally, things like a land survey and a soil sample will likely benefit your buyers, so advise them of that. Things like utilities, easements, access, and more should be topics of conversation.