Buying Large Tracts of Land

Every transaction in real estate is different, but the ones that will surprise most is those dealing with more than five acres of land.  First of all, choose a lender in the area where you are purchasing a tract of land.  Be sure to ask up front if that lender makes loans on acreage, especially anything over five acres.  I just recently tried to complete a deal with a lender from out of state on a large tract of land with a home in a neighboring county.  In the eleventh hour the lender tells my client that they will only lend a percentage of the sales price because they don't lend money on large tract of land.  They would only lend on the house and five acres.  The lender will not return my phone calls and has yet to send me a denial letter, which left my buyer and me in a bind.  However, the seller and his agent agreed to terminate the contract with the return of my buyer's earnest money.  I will also share with you that large tracts of land may not have comparable sales that go back only six months as they are sometimes considered unique properties. Tax records may have to be searched for FSBO's (for sale by owners) or the appraiser may do a cost analysis.  However, most lenders use the comparables.