When you buy farm land in North Florida, your real estate agent will most likely build a financing contingency into your contract. But what does that do for you? This guide explains.
The Financing Contingency When You Buy Farmland in North Florida
Your real estate agent’s primary job is to look out for your best interests, and in doing that, they’ll build contingencies into your contract. Contingencies are conditions that must be met in order for your deal to go through, and your agent puts them in your contract to protect you.
One of the most important contingencies is the financing contingency.
The financing contingency says that if you can’t secure financing to buy the property, as long as you’ve made a good faith effort to do so, you don’t have to purchase the property. This contingency comes into effect if you apply for a loan (or multiple loans) and don’t get approval.
Usually, you’re entitled to get your earnest money deposit back if you have to back out of the deal because you couldn’t secure financing.
Related: 3 critical tips during calving season
What Happens if You Can’t Secure All the Financing But Still Want to Buy the Farm?
If you can’t secure the full amount to purchase a farm, you may still have options. You may want to discuss owner financing with your real estate agent and the seller, or you may want to ask the seller to come down on the sales price.
Owner financing is often a good option for people who don’t qualify for traditional financing. In an owner financing agreement, you make your payments directly to the seller for a predetermined period of time. At the end of that time, depending on your agreement with the seller, you may need to make a balloon payment for the remainder of the property’s value.
Related: Land loan FAQ
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
Check these out:
- Paved road frontage for sale in Columbia County
- Non-deed-restricted land for sale in Columbia County
- Wooded oak tree land for sale in Columbia County
- Land-for-land home combo in Lake City
- Waterfront residential in Lake City
- Waterfront land in Columbia County
- Bank-owned homes and foreclosure in Columbia County
- Short sales in Columbia County
