Why We Love Buying Maryland Land in Cash

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Why We Love Buying Maryland Land in Cash
By

Bart Waldon

Maryland is known as "America in Miniature" for its diverse geography and habitats. From the beaches and marshes of the Chesapeake Bay to the mountains of the west, Maryland encapsulates a wide range of landscapes and ecosystems. The state also has a rich history as one of the original thirteen colonies and played a pivotal role in early American history. Today, Maryland is an attractive place for homebuyers and land investors alike. Its location near major cities like Washington D.C. and Baltimore makes it a popular commuting destination. At the same time, there is an abundance of pastoral farmland, rolling hills, and forested mountain areas that appeal to those looking for scenic beauty or recreational land. Purchasing land in Maryland is simpler and often more affordable when buying with cash. Here’s why:

Reduced Pricing

Selling land quickly for cash allows sellers to bypass real estate fees and the hassles of securing finance options for buyers. This means cash buyers can often negotiate a lower purchase price, making land ownership more accessible. Companies that specialize in land buying are experienced in accurately valuing land in order to make fair cash offers that work for both parties.

Flexibility

Cash purchases aren’t dependent on securing loans and going through lengthy underwriting processes. This makes for a smoother, more flexible transaction on both sides. Cash buyers can close quickly when opportunities arise, while sellers enjoy faster access to funds without financing contingencies putting the sale at risk. Whether you’re an investor seeking to flip land or a homeowner needing to sell inherited property, cash deals add versatility.

Less Hassle

Between showings, open houses, and qualifying buyers, selling land through traditional channels takes significant time and effort. Listing with an agent or selling it yourself means handling paperwork, advertising, negotiations and more. Closing the sale can take months after finding an interested party. However, working with cash buyers streamlines land deals by handling all the legwork of purchasing directly. The ability to directly sell land without the typical sales costs and disruptions is a major perk.

Mitigating Risk

From recessions impacting buyers’ ability to secure mortgages to natural disasters stalling development plans, many unpredictable factors can derail land transactions. All-cash deals remove contingencies that put the sale at risk, letting both parties close with confidence. Cash offers also make buyers less susceptible to rising interest rates and fluctuating market conditions. Lower risk gives landowners greater certainty that the sale will successfully complete.

Navigating Market Volatility

Experienced land professionals recognize the volatility of real estate markets in Maryland and nationally. Pricing land appropriately relies on in-depth comparable sales analysis and intimate knowledge of local market trends. Simply listing land on the open market does not guarantee recouping the desired resale price. In slower markets, it can take upwards of two years just to generate interest. And there are hefty agent commissions, closing costs and carrying fees associated with traditional sales that cut into profits.

Reputable cash buyers aim to make fair market offers reflecting the realities of selling vacant plots and acreage. While some see direct purchase companies as “low balling,” their offer amounts often just mirror the property's current true value based on development costs, holding fees, and probability of sale. Paying top dollar isn’t prudent for buyers, but substantial discounts aren’t fair to sellers either. Finding an equitable price is key.

Top Reasons Cash Buyers Target Maryland

Profit Potential - Paying reasonable discounted prices allows room for cash buyers to earn attractive returns through land development or resale down the road. Maryland offers solid upside.

Market Growth - Major metropolitan regions like Baltimore and suburbs near D.C. offer expanding real estate markets attractive for investing.

Desirability - Maryland provides an exceptional quality of life from the mountains to the oceanfront, driving demand. Cash buyers capitalize on rising interest.

Stability - Steady population growth and business friendly policies help support stable real estate markets more insulated from downturns.

Diversity - With agriculture, tech sector growth and tourism, Maryland delivers economic diversity that fuels real estate across sectors.

Innovation - Emerging industries focused on biotech, medical research and more are expanding Maryland's footprint and growth potential.

Logistics - Two major ports, international airports and infrastructure create advantages as a strategic hub location on the Eastern seaboard.

Mistakes to Avoid When Buying Maryland Land for Cash

Rushing Due Diligence - Cash buyers still need to verify property lines, existence of liens, permit status, deed restrictions and more. Fully vetting land protects your investment.

Overpaying - Work with appraisers familiar with the area to accurately assess fair market value. Don’t waive contingencies that give outs for overpaying.

Lacking Exit Strategy - Map out your plans post purchase - build, flip or hold long term. Factor timeline, costs and market conditions into price negotiation.

Ignoring Regulations - Research zoning, usage laws, permitting, and development requirements in the specific county early when evaluating land parcels to buy.

Not Confirming Utilities - Verify that electric, water, sewer and other utility infrastructure either exists on site or can be readily accessed for your intended use.

Poor Access - Inspect ingress/egress easements on paper and in person. Ensure usable road frontage suitable for your activity or budget costs to improve driveways.

Environmental Issues - Have possible contamination professionally assessed. Flood zones, wetlands and forestation also impact land use.

Weighing benefits against common mistakes will steer cash buyers toward wise land investments in Maryland. Performing due diligence, accurately valuing parcels, and understanding regulations helps buyers capitalize on stable growth and innovation tailwinds across the state. Partnering with experienced real estate professionals can further mitigate risks when navigating suitable land deals paying equitable prices.

Should You Invest in Maryland Land in 2023?

Maryland offers appealing stability and growth drivers encouraging real estate investment in 2023. Here are factors to consider when evaluating land deals in the state this year.

Steady Appreciation

Despite economic uncertainties, Maryland land values continue appreciating at over 5% annually in both rural fringe and metro areas. Prices are predicted to keep rising through 2023 as demand outpaces limited supply.

Innovation Driving Demand

Major innovation hubs focused on biotech and medical research concentrated around Baltimore, Bethesda and Rockville will lift real estate across sectors. The resulting job creation attracts new residents and developers.

Infrastructure Projects

Ongoing infrastructure initiatives including public transit expansions, port enhancements and major highway improvements will bolster Maryland’s business appeal and interconnectivity.

Tourism Rebound

As pandemic impacts fade, Maryland’s tourism industry is primed for a strong comeback given the state’s cultural attractions, historical sites, scenic beauty and accessibility. Hospitality sector real estate will benefit.

While broader factors like inflation and climbing interest rates temper forecasts, Maryland provides relative stability for land investors. Demographic and job growth tailwinds plus increasing scarcity of developable land make strategic plots a smart long-term hold.

Final Thoughts

Based on projections for steady appreciation and demand in both rural acreage and metropolis-adjacent property, Maryland represents a winning real estate investment play for 2023. The state continues proving its resilience amidst economic fluctuations. Drivers like an expanding innovation economy, infrastructure upgrades unlocking development potential, and the maturation of new neighborhoods position discerning land investors to reap stable long-term gains. With tourism and agriculture also powering growth, strategic parcels in designated zones offer diversity and downside protection. Position yourself ahead of accelerating interest and development by acquiring Maryland land this year. The market outlook remains bright, even if a modest cool-down hits broader property segments.

Frequently Asked Questions (FAQs)

Why should I look at buying land in Maryland right now?

With solid home price growth predicted through 2023, Maryland offers stability for real estate investors worried about a cooling national market. The state also benefits from increasing demand outside major metro areas as remote work trends decentralize from cities.

What kind of returns can I expect on rural land investments?

In the hottest zones near Annapolis and the Eastern Shore, vacant plots have seen 10-15% annual appreciation recently. More typical rural fringe areas deliver 5-8% returns. Strong demand from D.C. commuters and retirees lifts values.

Are there downsides to developing land in Maryland?

Challenges suburban developers face include conservation regulations around the Chesapeake Bay watershed and inconsistent zoning restrictions between counties. Know your county’s rules before investing.

What development projects are driving growth?

Maryland’s investment in infrastructure including highways, public transit and ports strengthens real estate fundamentals. An expanding biotech sector around Bethesda also lifts the metro economy.

Is now a bad time to buy with interest rates going up?

Any cooling of demand from higher mortgage rates should be offset by Maryland’s stable employment outlook. Weigh financing costs against projected medium-term appreciation if buying land to develop residential or mixed projects.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.

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