I’ve been learning from mistakes (mine and others) for a long time
A client of mine recently went under contract on a tract we think is prime for an acreage lot development. It’s outside any city limits—thankfully—so we’re dealing with the county instead of some slow-moving municipal planning department.
County processes? Still not fast. But we’re talking 1–2 months for plat approval instead of 5–6. That’s a win.
Even better, the seller had already started working with an engineer, so we’re ahead of schedule compared to most deals like this.
But before you do anything with a plat, you have to confirm the local water co-op has capacity to serve the project. If they don’t, you need to know what has to happen to get service.
That starts with paying $1,000 to their engineer—just for them to look at it. Seems like a few hours of work, right? Nah, they’ll quote you “a few weeks.” Feels like a racket because it kind of is. But here we are.
Knowing this, I negotiated a 60-day option period for my client to complete due diligence. And in case we needed more time, we got two 30-day extensions built in—for a nominal fee that gets credited toward the purchase price. So, effectively free if the deal closes.
Now here’s where things really went our way:
The engineer came back quickly (shocker) and confirmed there is capacity—without needing system upgrades. That never happens. But we’ll take it.
Phase I of the plat has already been approved. It just needs to be filed, and we can start selling those lots—they don’t require new streets. The rest of the plat is moving toward approval too.
Now the seller wants to know: “Are you going to skip the extensions and close sooner?”
I haven’t even asked my client, but I can already tell you the answer—hard no.
Here’s why:
When you’ve got a property under contract, you control it—without paying for it yet. That means we can start talking to builders and buyers, even write contracts on the lots. We just can’t close those until we officially own the land.
Meanwhile, the purchase money? Sitting in my client’s bank account, earning interest.
No brainer.
When negotiating, I honestly expected the seller to insist that any extension fees be added to the price, not credited toward it. And that it be new money, not just a release of funds already at title. Nothing too crazy—just enough to make it worth our while to forgo an extension we don’t really need. And we’d have agreed to it.
Why didn’t he? No idea. Maybe he didn’t think it through.
Why didn’t I point it out? I’d have been breaking my fiduciary duty to my client. Plain and simple. It’s my job to get my client then best deal, not the other way around.
So here are two takeaways:
- If your contract gives a buyer extension options, assume they’ll use every single one and close on the last day possible. That’s just smart business on their part.
- If you’re not experienced negotiating land contracts, there’s a good chance you’ll put yourself in a non-ideal but avoidable situation. This can cost you time, money or both.
Having the right person on your side matters. Not every deal is perfect, but if I’m representing you, you’ll know exactly what you’re getting into—before you sign anything. Not after.
Thinking about selling? You know where to find me.
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