Neighbors

How to get access to a landlocked parcel: the basics

You notice a landlocked parcel for sale, and you think, “Gee, that’s a nice parcel at an amazing price”. But after reading the fine print you realize there’s no road to it, and it doesn’t have an easement. The parcel is “landlocked”. “How will I ever get access” you wonder?

This is an important question, because access is needed to build. Here I describe the steps you can go through to obtain legal access.

You notice a parcel of land for sale and think, “Gee, that’s a nice property at an amazing price.” But after reading the fine print, you realize there’s no road to it, and it doesn’t have an easement.

The parcel is “landlocked”.

“How will I ever get access?” you wonder. This is a good question because you will need access to build.

Here, I describe the steps you can take to get legal access.

This is an “Intro 101” examination of the basics, not an advanced discussion. I describe the process in a super simple manner to those buyers who have no idea how to arrange access to a landlocked parcel. If you have more advanced questions, you will want to discuss those with a real estate attorney.

Key things to be aware of first

A “landlocked” parcel does not have access to a road because it is surrounded by property owned by other people.
The existence of a physical “road” that you can see with your eyeballs does not necessarily mean you have legal access.
Your aim is to get an “easement for ingress and egress” (access to go in and out). Once you have an easement, you can cross over your neighbor’s private property to get to your property.
An easement is the right to use the real property (real estate) of another for a specific purpose. The owner of the underlying land keeps the legal title.
Easements “run with the land”. That means the easement stays in place when you sell your property. It also remains when your neighbor sells his property. Humans come and go. Land and easements stay where they are. So, any future owner of your land would also have access via the easement, and any future owner of your neighbor’s parcel would still have to provide access.

Step 1: Verify that the parcel is truly landlocked

It does not make sense to go to the trouble of trying to create an easement if you already have access. So, the first step is verifying that the parcel in question is genuinely landlocked.

If the land is on an official paved or dirt road, you probably have legal access and do not need an easement. If the property is on an unofficial road or path, you may or may not need an easement. You cannot tell with your eyes whether the existing road is official. You also cannot tell by looking whether there is a legally recorded easement. The “road” could be unofficial and not an easement.

Order a title report to learn whether you already have access. When title companies decide whether to insure the title, they also consider whether to insure for “marketable access.” In my experience, “marketable access” corresponds to what I will call “legal access” about 99% of the time.

If the title company says that they will insure the title and will also insure for access, you can be pretty sure you have legal access.
If the title company says they will insure for the title but will not insure for access, you can usually assume you have no legal access, and your parcel is landlocked.

So, the easiest way to determine whether a property is landlocked is to order a title report.

When the title company agrees to insure for the title but declines to insure for access, a phrase like “The lack of right of access to and from the land” will appear in the exceptions section of the title report. When this phrase does not appear, the title company is basically saying they will insure for both title and access.

Step 2: Gather information on the history of access

If the owner of a parcel for sale has already tried to get access from a neighbor and failed, you need to know this. Maybe the seller has been feuding with his neighbor over access for years. This scenario suggests that you, the future owner, may also find the neighbor challenging to work with.

On the other hand, the history might offer good news. Suppose the seller subdivided his 10 acres back in the day. He sold 5 acres next to the street to his best friend from high school and kept the 5 acres in the back for himself. He forgot to create an easement across his friend’s land to his land. That’s a different situation. Creating an easement in a case like this should be easy.

Understanding the history will help you, as a buyer, to understand the likelihood that your efforts to negotiate an easement will be successful.

About 90% of the time, you will discover no history. The seller has never attempted to arrange an easement. This is because people commonly buy land as an investment, not to build. They have no reason to visit the land, so they never tried to create access. They bought it “as is” and are selling it “as is.”

Ask about the seller’s history of trying to establish access. You never know when you might learn something helpful.

Step 3: Consider who will create the easement and when

Will the city create the easement? No. The county? No. The transportation authority? No. The broker? No. The title company? No. The neighbor? No. The seller? Usually no.

So, who will create the easement?

You, the buyer, that’s who.

About 97% of the time, buyers of landlocked parcels must buy the land the way it is, close escrow, own it, and then start working to create an easement after closing.

About 2% of the time, the seller will entertain an offer with a contingency on the easement. This means the buyer can try to arrange the easement during their contingency period (part of the escrow period). If the buyer is unsuccessful, they can cancel escrow, get their deposit back, and walk away. If the buyer is successful, the buyer will close escrow. I say this happens 2% of the time because it is rare for sellers to entertain such a contingency. It can take months, a year, or more to go through all the steps to create an easement, and sellers typically want to close escrow in 21–45 days.

In unusual instances, like 1% of the time, the seller will agree to create the easement for the buyer before closing. Sellers may entertain this option when creating the easement is super-duper easy for them. An example of this situation is when the seller happens to own the adjacent parcel. He can easily create an easement across his own land. Another example is when the neighbor is a family member or close friend of the seller. A final example is when the seller has already negotiated access with the neighbor and only needs to put it in writing, get it signed, and record the easement with the county.

In my experience, buyers commonly want an easement before closing, and sellers seldom agree. It’s just wishful thinking on the part of buyers. Generally, buyers must buy the land and roll up their sleeves — in that order.

Sometimes, buyers who have not even submitted an offer on a parcel ask me for contact information for the neighbor. They think I can give them the neighbor’s phone number or email, and they can contact the neighbor and say, “Hey man, can I have an easement?” They hope the neighbor will say, “Yeah, sure, no problem,” and it will be easy.

Dear buyers, that rarely works.

First, I don’t have the neighbor’s phone number or email, and the seller does not have their contact information either. I can access title records, but those show only the neighbor’s name and mailing address, not their phone number or email.

Second, negotiating an easement takes more effort than a simple phone call. It can take months. So, a “hey man…” conversation is unlikely to be fruitful.

Third, you don’t own the parcel yet and are not even in escrow. So you don’t have the authority to negotiate an easement.

Fourth, more than one buyer will generally have this same idea, and it’s not good for many buyers to call the same neighbor.

So, buyers, please put this idea out of your mind. Landlocked parcels are being offered at a low price precisely because they are landlocked. If it were simple and easy to create an easement, the seller would have done it already. Further, he would have priced that $20,000 parcel you are eyeing at $200,000.

You must buy the land “as is” and work through the steps in this blog post to seek an easement after closing. Or don’t buy it. That’s the other option.

Step 4: Figure out where you want the easement

To seek an easement from the neighbor(s), you must figure out which parcel(s) you wish to cross. Get a map that shows your property and the neighbors. This map might be a plat map or an aerial map.

Say neighbors B, C, and D surround your land. If you cross B, you will reach the road. Alternatively, if you cross C, you must also cross D, and then you will reach the road. In the first case, you will need one easement. In the second case, you will need two easements. So, figure out which direction makes the most sense.

Also, assess where you want the easement on the neighbor’s parcel(s). For example, is there a well-worn dirt path you will try to follow? Do you want to travel along the boundary of a property? Is your desired easement straight or curved? How wide will it be? Ask the city/county what width they require to grant a building permit. That will dictate the easement width you will try to arrange.

Step 5: Get contact information for the neighbor(s)

You will need the neighbor’s name and contact information. Their mailing address might differ from the address of the adjacent property you want to cross.

Vacant land sellers rarely have contact information for their neighbors. Remember, they’re selling land, not a house, so they don’t live there. But your Realtor can look up the neighbor’s contact information in title records. In California and some parts of Oregon, agents have access to title records in Realist through the MLS. To do this, you must give the Realtor the address or assessor’s parcel number (APN) for the neighbor’s parcel(s) you want to cross.

You can use the official plat map (not a Google map) to figure out the surrounding APNs. For example, if you are purchasing APN 1234–567–89, the plat map will have an 89 in a circle corresponding to the parcel you want to buy. If you plan to seek an easement across a lot with a 90 in a circle, the APN for that parcel will be 1234–567–90. Give your Realtor that APN. Then, she can look up the name and mailing address of the owner of that parcel.

Another way to find the neighbor’s contact information is to use a geographic information system (GIS). GIS systems are available free online. To find a GIS system for your area, Google “GIS <city name>” if the parcel is in the city. Or Google “GIS <county name>” if the land is in the county. Enter the neighbor’s APN into the GIS and see if their contact information pops up. Note that not all GIS systems have contact information for property owners — some do, and some don’t. Also, if there is contact information, it will be limited to names and addresses. There will be no phone number or email.

Armed with the neighbor’s name, you might be able to find the neighbor’s phone number and email just by using Google. This works best if the name is distinctive. Try it.

If that doesn’t work, skip-trace the neighbor. You can find skip-tracing services online.

Step 6: Ask the neighbor(s) for an easement

Now that you have the neighbor’s contact information, the next step is to contact them. You can send the neighbor a letter, call, email, or try going in person. Or, if you prefer, you can have your attorney do any of these things.

Explain to the neighbor that you are seeking an easement. Be prepared to explain to them what an easement is. Reassure the neighbor that they will still own the land under the easement. You just want to cross it. Let them know that the easement “runs with the land.” So, it remains in perpetuity and does not disappear if you sell or your neighbor sells. Describe where you want the easement to go. State how wide it will be. Discuss who will improve and maintain the easement.

If the neighbor objects, offer to pay them for it. How much should you offer? It depends on the value of the land…$500, $5000, $50,000. I don’t know. It’s negotiable.

When considering what you are willing to pay for an easement, factor these things into your thought process:

An easement will significantly improve the value of your land. This is because parcels with legal access sell for much more than those without access. Easements improve land value by 10–1000%. Ask your Realtor to estimate how much an easement might increase the value of your specific parcel.
The alternative to paying the neighbor for the easement is going to court to resolve the conflict. Attorney fees are expensive, $200-$500/hour. Compared to paying attorney fees, paying the neighbor for the easement might feel like a bargain.
By burdening your neighbor’s parcel with an easement, you might be reducing the value of their parcel. It’s only fair to pay him enough to compensate him for any loss in value that he might incur.

If the neighbor agrees to offer an easement, go to step 7 and consider skipping step 8. If the neighbor declines to provide an easement, go to step 8.

Step 7: Hire a surveyor

Easements should be recorded with the county. To record an easement, you and the neighbor must sign an agreement. That agreement must specify the precise location of the easement.

The description of the location of the easement cannot be casual like “along the existing path on the west side of John’s land at 1234 Main St”. A proper legal description is often complicated and looks more like this:

An easement and right of way for a road, sewer, water, gas, power, and telephone lines and appurtenances thereto under, along, and across a 60.00 foot strip of land lying within Section 10 and 11 all in Township 9 South, Range 2 West, San Bernardino Meridian, in the County of San Diego. State of California, according to United States Government Survey, the centerline of said 60.00 foot strip being described as follows: Beginning at the Northwest corner of the Northeast Quarter of said Section 11; thence along the Northerly line of said Northeast Quarter, South 86° 05’ 24” East 577.98 feet to the True Point of Beginning; leaving said Northerly line, South 5° 37’ 14” East 310.00 feet; thence South 04° 36’32’ East 164.03 feet to the beginning of a tangent 300.00 foot radius curve, concave Westerly; thence Southerly along the arc of said curve, through a central angle of 27° 07’ 51” a distance of 142.06 feet thence South 22° 31‘19” West 133.34 feet to the beginning of a tangent 100.00 foot radius curve, concave Northwesterly; thence Southwesterly along the arc of said curve through a central angle of 60° 02’ 43” a distance of 104.80 feet thence South 82° 34’ 02” West 174.36 feet to the beginning of a tangent 400.00 foot radius curve concave Southerly; thence Westerly along the arc of said curve, through a central angle of 13° 33’ 30” a distance of 94.66 feet; thence South 69° 00’ 32” West 115.77 feet to an intersection with the Westerly line of the Northeast Quarter of Section 11, Township 9 South, Range 2 West, distant thereon South 05°54’22” East 926.55 feet from the Northwest corner of the Northeast Quarter of said Section 11; thence along the Westerly line of said Northeast Quarter, South 05° 54’ 22” East 397.68 feet to the Southeast corner of the Northeast Quarter of the Northwest Quarter of said Section 11 South 05° 22’ 54” East 13.10 feet; thence South 30° 35’ 51” West 281.12 feet to the beginning of a tangent 180.00 foot radius curve, concave Easterly; thence Southerly along the arc of said curve, through a central angle of 29° 17’ 17” a distance of 92.01 feet thence South 01° 18’ 34” West 264.21 feet; thence North 88°41’26” West 30.00 feet; thence South 13°19’28” West 66.15 feet of the beginning of a tangent 100.00 foot radius curve, concave Northwesterly; thence Southwesterly along the arc of said curve, through a central angle of 70°31’28” a distance of 123.09 feet; thence South 83°50’56” West 43.41 feet to the beginning of a tangent 200.00 foot radius curve, concave Northeasterly, thence Northwesterly along the arc of said curve, through a central angle of 47° 02’ 06” a distance of 164.18 feet thence North 49° 06’ 58” West 117.28 feet to the beginning of a tangent 50.00 foot radius curve, concave Southerly thence Westerly along the arc of said curve, through a central angle of 77° 08’ 23” a distance of 67.32 feet; thence South 53° 44’39” West 59.15 feet to the beginning of a tangent 150.00 foot radius curve, concave Southeasterly; thence Southwesterly along the arc of said curve, through a central angle of 28°58’14” a distance of 75.85 feet; thence South 24° 46’ 25” West 609.78 feet to an intersection with the Southerly line of the Northwest Quarter of said Section 11; thence along said Southerly line, North 87° 41‘ 25” West 61.94 feet to the Southeast corner of the Southwest Quarter of the Northwest Quarter of said Section 11; thence along the Southerly line of said Southwest Quarter of the Northwest Quarter, North 87° 41’ 25” West 193.45 feet to the beginning of a tangent 50.00 foot radius curve, concave Southeasterly, thence Southwesterly along the arc of said curve, through a central angle of 57° 08’ l0” a distance of 49.86 feet; thence South 35° 10’ 25” West 169.73 feet to the beginning of a tangent 100.00 foot radius curve, concave Northwesterly; thence Southwesterly along the arc of said curve, through a central angle of 36° 19’ 10” a distance of 98.30 feet thence North 88° 30’ 25” West 31.23 feet to the beginning of a tangent 150.00 foot radius curve, concave Northeasterly; thence Northwesterly along the arc of said curve, through a central angle of 42°51 ‘10” a distance of 112.19 feet; thence North 45° 39’ l5” West 138.04 feet to the beginning of a tangent 189.53 foot radius curve, concave Northeasterly; thence Northwesterly along the arc of said curve, through a central angle of 29° 27’ 20” a distance of 97.44 feet to an intersection with the Southerly line of the Southwest Quarter of the Northwest Quarter of said Section 11; thence North 16° 11‘ 55” West 482.67 feet to the beginning of a tangent 500.00 foot radius curve, concave Southwesterly; thence Northwesterly along the arc of said curve, through a central angle of 12° 50’ 50” a distance of 112.11 feet; thence North 29°02’45” West 376.18 feet to the beginning of a tangent 300.00 foot radius curve, concave Southwesterly; thence Northwesterly along the arc of said curve, through a central angle of 22° 07’ 00” a distance of 115.80 feet; thence North 51° 09’ 45” West 168.16 feet to an intersection with the Westerly line of said Section 11 distant thereon South 03° 25’ 35” East 194.19 feet from the Southwest corner of the Northwest Quarter of the Northwest Quarter of said Section 11; thence continuing along the last described course North 51° 09’ 45” West 122.20 feet; thence North 14° 09’ 45” West to an intersection with the Southerly line of the Northeast Quarter of the Northeast Quarter of Section 10, Township 9 South, Range 2 West.

As you can see, it’s complicated. Do not try this home!

Hire a surveyor to write a proper legal description of the location of the easement. The surveyor will also prepare documents for you and your neighbor to sign. After you sign, go to the county and record the easement.

Step 8: Hire an attorney

If the neighbor refuses to allow an easement, hire an attorney. You might also consider hiring an attorney long before this stage to help you with steps 1–7.

Choose an attorney who specializes in real estate. To find one, Google the American Bar Association for the county where the land is located. Call and ask for a referral to a local real estate attorney.

Your attorney will help you negotiate with the neighbor. They can also draft your agreement with the neighbor about who is responsible for the maintenance and improvement of the easement.

If the neighbor is uncooperative, your lawyer can advise you on whether the specific circumstances of your situation mean that you have a legal right to an easement. Then, your attorney can make this case in court if necessary.

Alternative approaches

You might be wondering if there are things you can do to address the lack of access without seeking an easement and without the expense of hiring an attorney. Here are some possibilities:

Offer to buy the neighbor’s property outright. Once you own it, you will have control and can create an easement on your land!
Offer to buy part of the neighbor’s property, enough to get you to a road. This would require subdividing the parcel or a lot-line adjustment. Sometimes the city/county will allow this, and sometimes they won’t. Before suggesting this to the neighbor, check with the city or county planning office to see if it’s allowed.
Ask the neighbor’s family member to convince the neighbor to give you an easement. This has worked for me.
If you’re not vibing with the neighbor for personality reasons, ask your spouse, significant other, family member, friend, or attorney to negotiate. They may have better luck.
Offer something of value to the neighbor. Examples include a) more money than you initially offered, b) “first right of refusal” so that he can be first in line if you ever sell your land in the future, c) a gate/road that you will install at your expense, d) fencing between your properties that you will install at your expense or e) that chain saw he keeps borrowing, etc. You get the idea. This is the “carrot” approach.
Explain your next steps to the neighbor if he declines the easement. For example, you will hire an attorney, so he will have to hire one. This will cost him money, and there will be a long, drawn-out court fight, etc. This is the “stick” approach and is not recommended unless you’re ready to burn all other bridges.
Offer to pay for a professional mediator to assist both parties in negotiating the easement.
Offer to sell your property to the neighbor. This will not achieve your goal of getting an easement, but it will get you out of the situation.
Wait for the neighbor to sell their property or pass it on to their heirs. Statistically, houses turn over every seven years on average. The next owner might be more accommodating.
Wait for the neighbor to put their property on the market for sale. List your land at the same time with the same Realtor. Buyers won’t be too concerned about your lack of access if they purchase both properties. This is because they will own the neighboring property.
Ask the neighbor for “personal permission” to cross. This is different from an “easement”. It applies only to you (and your family, guests, etc.) and does not “run with the land.” This means that the permission will disappear when you transfer the property or the neighbor transfers his property. It will not allow you to build or increase your property’s value when you sell it. But it will enable you to put your feet on your land for now.
Sell your land on the open market in its current landlocked state for whatever price you can get. Be sure to disclose the lack of access to the next buyer. This disclosure is a legal requirement.
Try arranging an easement in a different direction across another neighbor’s property.

Conclusion

Buyers purchase landlocked parcels every day. It is very common because parcels that lack access are offered at a bargain price. By studying this basic outline of the steps needed to create an easement, buyers unfamiliar with the process can assess whether buying a landlocked parcel makes sense.

Due diligence when buying California land: Answers to frequently asked questions

by Tammy Tengs

What is Due Diligence?

Due diligence means doing your homework on the property before you buy.

Who Handles Due Diligence?

Vacant land buyers are responsible for conducting their own independent due diligence.

Won’t the Seller or Agent Tell Me Everything I Need to Know About Land?

The answer is no. The seller and agent do not have all the information that might interest you. Sellers and agents are legally responsible for disclosing facts they are aware of. But they can’t disclose facts they are unaware of.

So, what kind of information will you get?

The seller will complete disclosure forms. They will write down everything they know about the land they consider a “material fact.” The agent will give a copy to you. If the seller has relevant documents, such as an engineering report or survey, they will also provide those.

In California, the seller will also provide a natural hazard report. The report discloses things like whether the land is in an area prone to earthquakes, floods, or wildfires. Companies such as Property ID or PDQ generate these reports from publicly available information. They charge a small fee, usually under $100.

The agent will tell you what they know about the land. The title company will provide a report so that you will know if the title is clear. Upon request, the title company can also provide a map of plotted easements.

That’s it! That’s all you get!

The information provided by the seller, agent, and title company will not be enough.

The agent and seller will tell you what they know. But, beyond that, it is your responsibility as a buyer to research other matters on your own.

For example, the seller may not know the precise location of corners of the land. If it’s not in the agreement, it is not the seller’s responsibility to mark the corners for you. If you want to know where the corners are, it is your responsibility as a buyer to pay for a survey. It’s not the seller’s responsibility to provide a well report. If she has one, she will give it to you. But if she doesn’t, you must arrange and pay for it yourself.

It is not your Realtor’s responsibility to determine if you can build a second unit on the parcel. You must study the zoning description or speak to a city or county Planner to see if zoning allows a second unit. It is not your Realtor’s responsibility to research the cost of a water meter. You must call the water company if you want to know that.

Dear buyer, you must do your own independent due diligence.

Won’t My Agent Do All This Research For Me?

No. Your agent’s role is to help you by advising you on where to get the information you need as you conduct your independent due diligence.

A key point here is that your agent, who has your back, knows it is in your best interest for you to do your due diligence. Any information you receive will be more accurate and helpful if you get it straight from the information provider. Information filtered through your Realtor will be less reliable. In fact, information filtered through any human intermediary will be less reliable.

Did you ever play the telephone game as a child? Here’s how the game goes: One child whispers a sentence to another child. That kid whispers it to the next kid, and so on. The last child at the end of the chain says the sentence aloud. It’s funny to see how convoluted it becomes.

Don’t play the “telephone game” with your Realtor in the middle. Cut out the middleman. Go straight to the electric company, water company, planning department, etc. Let them put the information directly in your ear!

Another benefit of talking to information providers is that you can ask follow-up questions and have a complete conversation. You may even learn things “you didn’t know you didn’t know.” For example, when talking to the water company, they may tell you that district water is available, but sewer is not. Wow, you might think. You were assuming water and sewer always go together! Now you’re aware that’s not the case. Or, suppose you ask the city Planner whether the zoning would allow an accessory dwelling unit in addition to a house. The Planner says yes and mentions that the zoning will allow you to subdivide the land and build two homes. Wow, that’s awesome. You didn’t know that, and it would fit your family better! One question will lead to answers, more questions, and more insight. The entire conversation will be very helpful to you.

Your Realtor knows it is in your best interest to get information “straight from the horse’s mouth.” That’s why your Realtor encourages you to “go direct” to each information provider to ask questions.

What if I Don’t Want to Do My Own Due Diligence?

Um, then maybe now is not the right time to be buying land?

Of course, you do have the option of buying land without a thorough evaluation. In rare instances, this can make sense. For example, extensive research may be optional if the property is a $5,000 parcel in the middle of the desert.

But it’s especially unwise to skip due diligence when:

The parcel is expensive,
The price is so low it seems “too good to be true,”
You want to build on the land,
You have a particular use in mind for the land and don’t know if the city or county allows that use or
You’re not familiar with the area.

When Should I Do My Due Diligence?

Do as much research as you can before even submitting an offer. If you get deal-breaking bad news, you can walk away. This will save you the time and effort associated with submitting an offer and negotiating with the seller. Plus, you can avoid sending a deposit to escrow.

Another benefit of researching before submitting your offer is that you can use any negative information you discover to negotiate a better price. For example, you can say, “Hey seller, I see that the price on your land is $100,000, but I found out it is in a flood zone. Building will be more expensive, so will you take $80,000?” That kind of thing.

With houses, it is common for buyers to go into escrow, get an inspection, and then ask the seller to make repairs. If the seller declines, buyers often ask for a price reduction.

That tactic is rare with vacant land. It may work for due diligence items that the buyer could not have been aware of in advance. For example, if you paid for a perc test during escrow and learned that the land requires a more expensive engineered system, the seller might give you a price reduction. However, if you try to negotiate the price down during the escrow period based on negative information that was publicly available to you before submitting an offer, such as zoning or property taxes, that will not be well-received. I recommend that you not try it, or you might get kicked to the curb.

But it is common and acceptable to negotiate the price when you submit your offer. Use negative information that you find to your advantage up front.

Include a contingency period in your offer. This will give you a way out if you discover something bad during escrow. The contingency period is sometimes called the due diligence period. The clock on the contingency period starts ticking “upon acceptance”. The acceptance date is when the last signature appears on the contract.

For example, suppose you sign and submit your offer on June 1st, and the seller signs and accepts it on June 3rd. Your agreement states you have a 17-day contingency period inside a 30-day escrow. You should complete your research by June 20th. At the end of the contingency period, the Realtor will ask you to “remove your contingencies .” In California, after you remove your contingencies, your deposit is non-refundable. So, for this reason, you should finish all research before your due diligence period ends. The contingency period usually ends well before the escrow closing date. So don’t get those two dates confused.

Will I Have to Go Somewhere to Do My Due Diligence?

You can do a lot of research at home in your pajamas!

You can review zoning descriptions on the city/county Planning Department website. Most provide an online Geographic Information System (GIS) with tons of information. You can email the city/county Planner to ask questions (this works best when the city/county is small). You can study aerial maps to get a sense of boundaries. You can review the title report, seller’s disclosures, and the natural hazard report. You can learn about crime statistics and weather in the area. You can phone the electric company, water district, well drillers, and septic providers.

Certain things are best done in person. Obviously, it’s best to go see the land in person. If you can’t do that, e.g., because you’re in another state, hire a service like We Go Look to take photos or videos.

If the land is in a big city or county, it may be hard to reach someone in the Planning Department by phone or email. In that case, you must get in your car and go speak to the Planner in person. Usually, you won’t need an appointment. Walk in.

Will Due Diligence Cost Me Money?

Most of it is free. But, if you want to do any of the following, you will have to pay for it:

Arrange a perc test for septic.
Ask a well driller to inspect the well.
Have a surveyor mark the corners so that you can understand boundaries.
Order a phase I environmental review.
Hire an engineer to investigate developing the land.
Retain a contractor to tell you whether a parcel is buildable.

No, the seller is not responsible for paying for these items unless agreed to in the contract. Sometimes, you can negotiate with the seller to pay half. But most of the time, sellers decline.

Buyers, it’s your due diligence, not the seller’s, so you must pay for it yourself.

What Information Do I Need to Have at My Fingertips Before Starting My Research?

Get out a piece of paper. Write down the assessor’s parcel number (APN). The APN is sometimes called the tax ID number. If there is an actual address, write that down as well. If there is no address, common for vacant land, write down the street the parcel is on plus the nearest cross street. Find out if the property is inside or outside city limits in the county. If it’s in an incorporated city, write down the name of the city. If it’s outside of an incorporated city, write down the county. If there is a Homeowners Association (HOA), write down the name of the HOA. If you know the name(s) of the current legal owners, write those down as well. Now that you have identifying information ready, you can start making those calls!

How Do I Even Know If There are Building Restrictions on the Land?

That’s easy. If it’s dirt, there are building restrictions! In other words, every parcel of land in California has building restrictions.

Who Governs Building Restrictions on the Land?

Restrictions may come from the following:

City
County
Homeowner’s Association
Other entities, such as the Coastal Commission or Historic District

If the land is within the limits of an incorporated city, then building restrictions are set by the city. If it’s outside city limits or in an unincorporated area, then restrictions are set by the county.

To determine if a city is incorporated or unincorporated, search the city name and state in Wikipedia. If unincorporated, go to the county. If incorporated, search Google maps to see if the land is inside or outside city limits. Type the city name and state into Google maps, and Google will show you the city’s boundaries. If inside, go to the city. If outside, go to the county.

Are There Electric and Water Meters Already Installed?

The chance of finding installed meters on vacant land is close to zero. I have only seen installed meters when someone lived in an RV on the property.

Even when there is no installed water meter, it could be that a previous owner already paid for it. We refer to that as “on the shelf” at the water company. To find out, you can call the water company and ask if there is a paid meter.

Since the odds of a meter is less than 1%, what you should be researching is whether utilities are available. Note that “available” does not mean that utilities are on the land running to the building site. Usually, the best-case scenario is that you find utilities “in the street.”

How Can I Research Whether Electricity is In the Street?

Get in your car and drive to the land. Look for the nearest electric wires and poles. Plot their location on a map. Find out the name of the electric company that covers that area. To do that, Google this: electric company <city or county name>. Phone the electric company and give them the parcel number (APN), address, or whatever they ask for. Inquire about the availability and cost of electricity.

How Can I Research Water?

To determine if district water is available, look for fire hydrants. Also, look for water meter covers. These offer evidence that water may be in the street.

If you don’t see evidence of district water, start looking for evidence of wells. Is there a tiny storage unit on the land? It might house well equipment. Walk around the land and look for a large round pipe poking up from the ground. It could be a capped well. From the street, look at the neighbor’s properties to see if they have tiny buildings that could house a well. Ask a neighbor if they have a well. If the neighbor has a well, this area likely has no district water available.

Based on your in-person research, phone the water district to verify. To find out the name of the water company, Google this: water company <city or county name>. Phone the water company and give them the parcel number (APN) and/or address or whatever they ask for. Inquire about the availability of water and the cost of a water meter.

If neighbors use wells and there is no well on the land, you must drill a well when you are ready to build. Phone a local well driller. Ask about the cost of drilling a well. To find a local well driller, Google this: well driller <city or county name>. If they express reluctance to offer estimates over the phone, ask for a range or a general sense.

How Can I Research Sewer/Septic?

Even though water is available, this does not mean that sewer is also available. So, when talking to the water company, ask if public sewer is in that area. If sewer is unavailable, you will need a septic system for waste. Like water and electric meters, a septic system on vacant land is rare. The only time I have seen that is when a house was there before, demolished or burned down. If there is a septic, you will want to get it inspected by a septic professional.

Not all land can support a septic system. To determine if a septic system is viable on your land, you can order a percolation test or “perc test .” Sometimes, you will see “perc” spelled “perk.”

If you want to do a perc test during the escrow period, write this intent into your offer to get the seller’s approval. It involves digging big holes in the ground, so you will need the seller’s permission to do that.

Before submitting an offer, ask a septic professional how long the perc test will take. Also, ask what their schedule is. Then, include the time you need for the perc test in your original offer. You want to avoid writing a 20-day contingency period into your offer only to discover later that it will take 60 days to get a perc test. Make your offer contingent on a successful perc test.

Perc tests cost money. To get a rough sense of septic viability without performing a perc test, talk to the neighbors. Ask if they had any trouble getting a successful perc test. You can contact a local septic installer to ask if he has ever had a home in this area fail a perc test. Finally, you can visit the county and find out if a historic perc test result is already on file. If the county has a record of a successful perc test, ask the county if the test would need updating due to age. If it’s a failed perc test, that’s important to know.

How Can I Research Zoning?

The first step in researching zoning is determining whether a parcel is in the city or the county. The location will dictate which planning office you go to for zoning information. Start your zoning research online. Instead of going to the city or county website and spending precious time poking around to find the correct department, it is faster to search Google like this: zoning <city or county name>. The zoning section of the official city or county website should pop up.

If the land is in a city or county with a common name, specify the state in your Google search. You don’t want to spend an hour looking for zoning on the Portland, Maine, website when the land is in Portland, Oregon!

Also, specify in your search whether you want the planning department for the city or county. This is to help Google distinguish between:

· Los Angeles city and Los Angeles county,

· Riverside city and Riverside county, or

· Fresno city and Fresno county.

To find a zoning map fast, go to Google and enter: zoning map <city or county name>. Sometimes, searching Google Images is a more direct way to find a map because a map, after all, is an image. Another good way to research zoning is to use the free Geographic Information Systems (GIS) provided by most counties and cities. You can search the GIS system using the parcel number or address and uncover a wealth of information. This information will include helpful maps and zoning. To find a GIS system for your land, search Google like this: GIS zoning <city or county name>. Include “zoning” in this search string because the city or county might have many GIS systems. Some will have zoning information. Some won’t.

When searching a GIS system using the assessor’s parcel number (APN), a helpful tip is to omit the dashes. For example, do not enter APN 1234–567–89. Instead, enter 123456789. If that doesn’t work, add zeros at the end, e.g., 1234567890000. Try one zero at the end, then two zeros, then three, then four. If that doesn’t work, add a zero to the beginning, e.g., 0123456789. If that doesn’t work, enter the address for the parcel. If none, enter the neighbor’s address.

A final way to figure out the zoning is to ask the planning office. Email, call, or go in person. Give them the APN. They will usually respond to email requests for information when it’s a small office. If it’s a large, busy office, it will be almost impossible to get an answer by email or phone. In that case, you will have to go in person. Before going in person, be sure you’re going to the correct office. If the land is in the city, go to the city. If the land is outside city limits, go to the county.

Buyers often make certain assumptions about the relevance of zoning. For example, they might assume that if zoning is residential, and allows a house, then some trusted entity has verified that a house is definitely buildable on that property. Not true. Building requires many things not covered by zoning. These include acceptable slope, water, and access for ingress and egress. Zoning does not take these factors into account. A parcel can have residential zoning and yet a building a house is not practical.

One last tip is to research both “zoning” and “land use.” They might conflict, and it’s good to know both.

How Can I Research Building Requirements?

If you’re interested in building, the first step is to research zoning. The zoning will tell you what kind of structure the zoning permits, if any. For example, if the zoning allows only homes, you cannot build a commercial office. If the zoning allows only one home, you cannot build two. Then, get in your car and drive to the city or county offices to learn what you can about building restrictions. If applicable, also check with other entities that have rules about what you can build. Examples include the HOA, Coastal Commission, etc. If you still have questions, pay a licensed contractor a consulting fee to advise you.

Remember, your Realtor is an expert in real estate sales, not building. Realtors will sell you the dirt, but building on the dirt is a whole separate thing.

How Can I Research the Homeowner’s Association?

If there are conditions, covenants, and restrictions (CC&Rs), the title company will provide them. Bear in mind that there could be CC&Rs even if there is no HOA.

The agent, or the escrow officer, will also order HOA financials, architectural standards, bylaws, etc. You will receive these during the escrow period.

For some reason, these documents are rarely available online. Maybe that’s because HOAs like to charge for them.

How Can I Research Property Boundaries?

Walk around the land near where you think the corners might be. Look in the dirt for markers. Markers might be anything:

vertical white PVC pipes
wood sticks poking up out of the ground
unusual piles of rocks
florescent pink tape hanging from a tree or
remnants of fence or old wood post.

Search for something unnatural that looks like a human put it there. But remember that humans make mistakes, so any markers you find may not be accurate. If you want the corners marked accurately, the only option is to hire a surveyor. To find one, go to Google and enter: surveyor <city or county name>.

Free GIS systems will also show you boundaries layered over aerial maps. I use paid software from LandId. Note that all computer-generated maps are inaccurate. The boundary lines can be off by 1, 10, or 30 feet. This is why you may see lines going through roofs and swimming pools. Don’t fret that the neighbor is encroaching on your land. It’s likely a computer error. Use these maps as an approximation only.

How Can I Research Easements on the Land?

Easements recorded on the land you are buying will restrict how you can use it. One example is a utility easement (no, you can’t build your garage under those tall utility wires).

If there are easements on the land, they will almost always appear in the title report you will receive during the escrow period. But, in the title report, the location of the easement will appear in some gobbledygook way. So, if you see easements mentioned, ask the title company for a map of plotted easements. That way, you can see their location and judge how they might impact your building plans.

Occasionally, there is a conservation easement blanketing the whole parcel, preventing building anywhere on the land (yikes!). There is a National Conservation Easement Database where you can look up them up online.

How Can I Research Access?

In California, it’s not uncommon for parcels to lack access. The property is landlocked. Also, physical access and legal access are different. A parcel might have one, both, or neither.

To research physical access, study aerial maps or get in your car and see if you can drive to the land.

The easiest way to evaluate legal access is to order a title report. If the title company says they will insure for title and access, then it’s likely the parcel has legal access. But what if the title company says they will insure the title but will not insure the access? That is usually because there is no legal access. There, you have your answer!

When there is no road going to the land, there may be an easement for access. Note also that easements on the land differ from easements used to access the land. The former are recorded on the property you are buying, while the latter will be recorded on the neighbor’s parcel. Easements recorded on land you are buying will not help you get from the road to the land. Easements recorded on the neighbor’s property for ingress/egress to your parcel may not appear in the title report because the report is specific to the property you are buying. So, you may want to ask the title company to research easements for access recorded on the neighboring property. If the title company discovers an easement for ingress/egress, ask them for a map of plotted easements showing the route.

How Can I Research Environmental Problems or Endangered Species?

If you have concerns about possible environmental pollution, you can pay for a Phase I Environmental Site Assessment. Generally, this is only needed when the land hosted something like an abandoned gas station, junk yard, auto repair site, or if you see evidence of pollution, such as leaking oil drums. To find a local firm, Google: Phase I Environmental <city or county name>.

And while we’re on the topic of nature, did you know that there are rules about removing certain trees in California? If there are oak trees or joshua trees on the land, look into that. If they are right where you want to build, that could be an issue.

How Can I Research Neighbors?

Get a crime statistics report for the City or County. To do this, Google: crime statistics <city or county name>. You can also research predators living near the land at the Sex Offender Registry.

But don’t freak out and conclude that the land is in a sketchy area just because you find a certain number of burglaries and pedophiles. Sorry to be the bearer of bad news, but almost every neighborhood has crime. The best way to realize that is to research the community you live in now, and you will see what I mean. Evil-doers are everywhere! Bleh!

Another way to learn more about the neighbors is to stop and talk to them. Say “hi” to the guy bringing in his groceries or the lady working on her car in the driveway. See if they’re the kind of people you want to have as neighbors.

How Can I Research Local Amenities?

In Google Maps, search for the property you are buying. If there is no address, because it’s vacant land, enter the address of a home down the street. Then click on “nearby”. Several options will pop up, such as Restaurants nearby, Hotels nearby, Bars and pubs nearby, etc. Choose one or enter what interests you, e.g., grocery stores, hospitals, schools, etc. Google will map them for you.

How Can I Research Climate?

One of my favorite places to research climate is BestPlaces. I like to compare two cities. The site offers helpful information for two cities on weather, crime, economy, housing, health, education, people, transportation, religion, voting, jobs, etc.

How Can I Research Real Estate or Rental Prices?

Search Zillow or ApartmentList. There are no Zillow-generated Zestimates for vacant land (thankfully). So, search for similar properties for sale and properties that have sold. When checking prices, remember that the most important reason a property is for sale, and not sold, is that it is over-priced.

How Can I Research Whether the Title is Clean?

As a buyer, you do not need to research the title. Leave it to the professionals, the title officer.

During the escrow period, the title company will investigate the chain of title. They will produce a title report. You can review that. The title company will not insure the title unless it is “clean .” So, if they say they will insure the title, that’s your best indicator that it is in good shape.

If there are blemishes on the title report, the seller can often correct those during the escrow period. So, if the preliminary title report says the title is not clean, don’t assume that’s the end. Wait for the final title report after the seller and escrow officer have worked to address questionable items. For example, if there is a judgment or lien, the seller can arrange to pay that off. Then, it will disappear from the title report, and you will not be responsible for the lien.

How Can I Avoid Making Mistakes on My Due Diligence?

One way to avoid errors is to get with your Realtor and create a list. The list will include all items you, the buyer, must research. Also, put on the list where you can go to research each item. By creating a list, you will be less likely to forget something,

Another way to minimize error is to get all critical information directly from various information providers, not second-hand from Realtors or sellers.

A final way to reduce error is by practicing redundancy: Get the same question answered in multiple ways or by several different people. For example, if you are trying to figure out if the land is likely to perc for septic, you can:

Ask a neighbor if they had any trouble with their perc test,
Check with the county to see if a historic perc test is already a matter of public record,
Call a local septic installer to ask about the viability of septic in that area and/or
Pay for an actual perc test.

That is, do several of these things, not just one.

Storytime: I once phoned a county planning office to ask about the zoning for a parcel I was selling. The Planner I spoke to said the zoning was commercial. A few days later, I called again to get some clarification on what commercial uses were allowed, e.g., office, restaurant, or what? I talked to a different planner. That Planner said it was actually zoned residential. So, I went to the planning office in person. The third Planner walked me over to a large zoning map on the wall. That map showed commercial zoning along the street and residential zoning in the back. I could see from the map that it was the correct answer. Finally! Making several phone calls, and going in person, and looking at maps was the key to getting accurate information at the end of the day. Redundancy rules!

What if I Mess Up on My Due Diligence?

Once, I was selling a piece of land, and the buyer received all seller and agent disclosures but did zero additional due diligence before buying. He then asked to “rescind” the sale after closing escrow.

Um, that’s a “no”.

There is no way to rescind a sale after escrow has closed and a change of ownership is recorded with the county.

Buying real estate is different from shopping in a retail store. You can’t walk up the return counter with a copy of your receipt and get your money back. With that said, if, after purchasing land, you decide that you don’t want to own it for any reason, you can always resell it. But be sure to disclose all material facts to the next buyer, especially any adverse ones you discover. The law requires this.

It’s All Very Overwhelming. What Strategies Will Make it Easier?

Remember, all you’re trying to do now is decide if you want to buy the land. You won’t be building a house next week — that’s in the future. So, focus on the mission-critical items, i.e., the things that affect whether you want to buy it. If you think about it, you will realize that some things are not critical right now.

For example, do you really need a surveyor to mark the exact-exact-exact corners on those 40 acres? Or will studying boundaries in an aerial map do for now? If you discovered that the property line is 10 feet from where you thought it was, would that affect your buying decision? If so, hire a surveyor. If not, it can wait until after you buy the land.

Or, suppose you’re buying a lot in a densely populated urban neighborhood. You observe a fire hydrant at the nearest intersection. The house on the left of the lot has water, and the one on the right has water. In this situation, do you need to research the cost of a water meter right now? After verifying that there is no moratorium on issuing new water meters in that area, you might put that item on the back burner until you’re ready to build. All you’re trying to do right now is trying to figure out if there are any bad-news-deal-breakers. You can put off the rest ‘till later.

If you think along these lines, you can cross some things off your immediate To-do list. Resolve to tackle them after you buy the land. For now, focus on those key items that affect your buying decision.

Summary

When purchasing land, yes, you do have to do your independent due diligence. Further, there is no “one-stop shopping” for all the information you need. No single person will provide all the answers for you.

Not the seller.

Not the Realtor.

Not the escrow officer.

Not the title company.

Savvy buyers will want to make a list, roll up their sleeves, and do their own research before buying land.

Selling land? Write to the neighbors!

by Tammy Tengs

People who already own real estate in your neighborhood don’t need as much convincing about the fabulosity of the area. After all, they already bought real estate in the same area, right? When selling land, your neighbors may be your best prospects!

How can you make them aware that your land is for sale? Maybe you have a sign on your land. The neighbors surely see the sign, don’t they? That’s what you’re assuming anyway. Plus it’s in the MLS and advertised all over the Internet. So why write letters to the neighbors too?

Six Reasons to Write to the Neighbors

Your vacant land parcel probably has other vacant land parcels near it. By definition, the owners of those vacant parcels don’t live on their land and might even live in another state. They will not see your sign. So write to them!
The neighbors who do live nearby may have glanced at your sign when it went up. But now your faded sign doesn’t even register with them anymore. To them, it’s become more debris stuck in the weeds as they rush off to take the kids to soccer practice. But if they receive personalized invitation to buy your land in the mail – now that will have impact!
Mailing a letter sends a message that you are serious about selling your land. Why? Because not every seller does it. Your neighbor will likely realize that you are sending letters to all the neighbors. That’s a good thing. It will start to dawn on them that if they don’t buy your land someone else will (!) and then they may have a McMansion blocking their view. Or they may wake up one morning and find a single-wide mobile home and bunch of barking dogs on the parcel that they’ve been thinking of as their informal side-yard all these years, yikes.
Even if the neighbor isn’t interested in purchasing your land, they may know someone who is. If they have a paper brochure they can easily hand it to a friend or relative.
A letter gives your neighbors a kind of “heads up” that they should expect to see strangers (potential buyers and their agents) out walking on your land. This way they are less likely to fret about unusual people in the neighborhood. Warning the neighbors reduces the chance that they will disturb buyers, causing buyers to feel unwelcome.
A mailing gives your broker the opportunity to indirectly market their services to the neighbor in the event the neighbor wants to sell their property too. Now wait a minute, you wonder, why the heck is this good for you, the seller? There are many reasons: a) If your parcel is landlocked (i.e., does not have road access or a legal easement) and the neighbor owns the parcel between your land and the road, it would benefit you to have your Realtor list the neighbor’s land for sale at the same time. b) Buyers might want larger acreage. By offering two parcels for sale, buyers can purchase both, increasing the odds of selling your land. c) Your neighbor may have a well while you do not. Buyers might purchase their parcel for the well and yours for the additional acreage. d) The neighbor may have a structure or fence encroaching on your land or visa versa. Sell both parcels together to the same buyer and the problem is basically solved. e) With two listings, there will be twice as much marketing for land in your neighborhood. Buyers could see an ad for the neighbor’s parcel but submit an offer on your parcel….I could go on and on with examples on how this could be in your enlightened best interest.

My Letter to the Neighbors

Dear Mary Jones,

I am writing to let you know about the availability of a parcel of land near property that you own in SomeCity, California. The parcel for sale (parcel number 1234-567-89 at 987 Main St and your property (parcel number 1234-567-90 are shown on the map in the enclosed brochure.

I find that neighboring property owners are sometimes interested in acquiring nearby land. With that in mind, I am writing to ask whether you might be interested in purchasing my client’s parcel? The asking price is only $200,000.

More information is available at www.land22.com.

I would be happy to answer any questions you might have. Thank you for considering this opportunity.

Sincerely,

Tammy Tengs, Sc.D.

Principal Broker

Land22 Real Estate

Important Features of the Letter

Keep it short. Include a longer brochure with the letter that has all the details on your land. Don’t repeat those details in the letter.
Direct the letter to each neighbor by name, not to “Dear Neighbor”.
Your neighbor may own more than one parcel of land so orient them right off the bat to which of their parcels you’re writing to them about. Include the city and state. If it’s in a well-known area or neighborhood within a larger metropolitan area, mention the local area in addition to the the city. For example, you might say that it’s in “Silver Lake, Los Angeles” instead of just “Los Angeles” in case the seller owns other parcels in the greater Los Angeles area.
It’s critical to include not only the parcel number (APN) of the property you’re selling but also the APN of the neighbor’s parcel. This way the neighbor can easily see that the APNs are very similar. This allows them to gain insight that the two parcels are near one another. For example, if you’re selling APN 1234-567-89 and the neighbor’s APN is 1234-567-90 you want the neighbor to say to herself “hey, those numbers are almost the same so that lot for sale has to be right near my land!” People are more likely to buy land that is close to the land they already own.
If the land you’re selling has a street address, include that too. If an address is unavailable, include just the street name. If the parcel is not on a legal street but it is near a legal street say “off <street name>” instead of “on <street name>”. Again, your goal is for the neighbor to immediately realize “gee, that’s (just around the corner from) the street my property is on.”
The letter must be well written with no typos. Use the spell- and grammar-check features in your word processing software.
Use the mail merge feature in your word processing software so that you don’t have to draft a separate original letter for each neighbor. Create a little data file of the names, addresses, and parcel numbers and merge them into a single form letter so that the letter appears customized for each recipient. I enter my neighbor-addresses into my Filemaker Pro database and then I export them into a file that I use for mail merge into a Microsoft Word letter.

Important Features of the Envelope

Envelopes that appear to be junk mail will end up in the garbage. Direct marketing researchers actually study the features of envelopes that increase response rates. Based on what I have read about direct mail research, and my own experience, here are my tips for your envelope:

Use colorful stamps. Do not use the standard flag stamps and never meter the envelopes. Any crazy stamp will do. The less staid it is the more likely your letter will look personal and the more likely the recipient will open it. Remember, you’re not trying to look professional here – you’re trying to get your letter opened.
The return address should be the Realtor’s first and last name and mailing address. Do not include the real estate company name or the neighbor might toss it without even opening it thinking that it is just another general solicitation from a Realtor. (The letter inside should be on company letterhead however.)
Do not use address labels or see-through window envelopes. There is research showing that if you hand write the address on the envelope the recipient is more likely to open it and not discard it as junk mail. If the mailing is small, and if you have time, consider handwriting addresses on each envelope. (I don’t hand-write because I don’t have time – I feed envelopes through the printer for addressing but if you do you might improve your response rate.) The goal is clear though: it to should look like personal correspondence not a mass mailing. This way the neighbor is more likely to open the letter.
Use the neighbor’s actual name whenever possible. Try not to use impersonal entity names. For example if the property is officially owned by the “Mary Jones Separate Property Trust 1998”, address the envelope (and direct the letter) to just “Mary Jones”. If it is owned by “Bob Anderson Construction Inc.”, address the envelope to “Bob Anderson”.
Omit Mr., Ms. or Mrs. The reason for this advice is that title records do not include gender and you don’t want to get it wrong. A Mr. named Leslie will almost certainly be offended if you mess up and call him Ms. Also a Ms. might be unhappy to be called Mrs. and a Mrs. might be miffed to be called Ms. So just omit this stuff entirely. Start your letter with “Dear Leslie Thompson” not “Dear Mr. Leslie Thompson” or “Dear Mary Jones” not “Dear Ms. Mary Jones.“

Single Most Important Feature of the Brochure

The brochure should include things like the price, size of the parcel, zoning, availability of utilities, photos, contact information for the Realtor, etc. Here I will mention only the single most critical feature of the brochure for the purpose of writing to the neighbors: You should add to the brochure a map where both the property for sale and the neighbor’s property are highlighted.

I usually do this in color on a black and white plat map but you could do it on another type of map such as an aerial map. The purpose of this is to show the neighbor where their property is located relative to the land for sale. For example, if their property is adjacent to the one you’re selling it’s especially important that they see clearly that the borders of the two properties touch. Use colored highlighting to accomplish this.

In theory you could do the highlighting neatly on the computer but I do it by hand with a colored highlighter pen. The rest of the brochure is computer generated so this hand-drawn touch draws attention. I highlight the parcel for sale as well as the neighbor’s parcel in two different colors. Be sure to write a note such as “your adjacent property” or “your land across the street” and draw an arrow pointing to the neighbor’s real estate. It is important to include this note because you don’t want the neighbor to get alarmed thinking that you’re mistakenly trying to sell their parcel.

Here is an example. The property for sale is highlighted in orange and the neighbor’s property is highlighted in blue:

You might wonder: Why am I showing the neighbors where their own land is located? Don’t the neighbors already know? No, many do not! And even if they do, most could not locate it on a plat map. They still need to be shown where their land is relative to the land you’re selling. Plus you’re trying to get them to think visually “hey, the acreage our house sits on could be twice as big if we only bought that land!” Or “Gosh, that would be a sweet spot for Grandma’s doublewide, I can see it’s right near our house!” The parcel number (APN) is helpful but not sufficient. So pull out that colored highlighter!

Where Do You Get The Mailing Addresses?

If your land is listed for sale with a Realtor, your agent can easily access the names and addresses of your neighbors from an online title records database. One such database is Realist. Realist is integrated into California MLS systems so available to most California Realtors. Since sellers cannot log into the full MLS, Realist is not available directly to sellers. Realtors in other states may also have access to Realist or something similar or can get addresses from title companies or other online sources.

One way an agent can locate the names and addresses in Realist is to use the parcel number (APN). For example, if your parcel number is APN 1234-567-89 and the Realtor wants to locate a number of parcels near by, she can search on just APN 1234-567 (omitting the -89 at the end). This will generate a list of owners with APNs 1234-567-01, 1234-567-02, etc.

If the parcel you’re selling is located at the corner of a plat map you may wish to search for neighbors on adjacent plat map(s) too. The way I do that is to poke around using the aerial map feature in Realist. I locate the parcel I’m selling on the Realist map and then click on the map depiction of adjacent and nearby parcels to see who owns them, one by one.

Then I enter each address into a database manually: Name, mailing address, parcel number (APN). This takes about 30 minutes. For all of you computer aficionados or millennials, wondering why I do this manually, it’s because there is no simple way I could translate my thought process on neighbor selection criteria to create data export rules. It varies by parcel and it’s an art. I could probably automate the process, cast a wide net, and blast out a huge number of letters to everyone within a mile or something. But then I’d be spamming a bunch of people who would have no interest in this parcel and I don’t want to do that. It’s not nice. Better to be more selective.

Which Neighbors Should You Write To?

The number of neighbors that your broker should write to depends on the circumstances. Here are some rules of thumb:

Always send a mailing to every adjacent property owner.
Send a mailing to the property owner(s) across the street.
Mail to any property owner who would be disadvantaged for any reason by someone building on this parcel, e.g., because their view would be obstructed. These neighbors may be motivated to purchase.
Send a mailing to “like” property owners on the same or adjacent plat map. For example, I am currently listing a commercial-zoned parcel that is near other commercial lots but also near residential and multi-family property. I reasoned that the commercial property neighbors may be investors interested in expanding their commercial holdings (they are “like” neighbors) but the single-family homeowners may not be so interested so I skipped them.
Don’t hesitate to write to neighbors some distance away if you think they may be buyers. After all, it’s only costing you a postage stamp and the time to enter one more name into your data file. For example, if you’re selling agricultural acreage, it doesn’t hurt to write to other farm owners a mile away.
Skip owners who are not going to buy your land. An example would be a bank. The reason a bank owns a parcel of land in your neighborhood is because they foreclosed on the previous owner. They do not want more land. They want less land.
I often send mailings to 50-100% the property owners on the same plat map and several who are on the adjacent plat map. I write to 2-25 neighbors per property, depending on the circumstances. Sometimes I will do this in two stages: I will write to a small handful of the closest neighbors and then, if I don’t get any response from them, I will do a second mailing, enlarge the pool, and write to those farther away.
After the first mailing, if the seller later drops the price, I will send another mailing to the same neighbors. This time I only send the brochure with the new price clearly shown. I do not include a letter and do not repeat the highlighting of the two parcels. The purpose of this second mailing just to get the new lower price in front of the neighbor.

Examples of Success in Writing to Neighbors

Example 1: A couple years ago I was listing a Gold Country parcel in Northern California. I wrote to nine neighbors. The seller lived in the state of Nevada and was not in communication with his California neighbors. Two neighbors who received my letter called me to express interest. One neighbor submitted a full price cash offer. The seller accepted it. Afterwards, the second neighbor’s daughter asked to submit an offer but the parcel was already in escrow.

Example 2: Title records revealed that only two landowners dominated ownership of all the lots in the immediate area of a Central California lot that I was listing. Since there were only two neighbors I sent only two letters. Of the two neighbors, it was the landowner who owned the fewest parcels who called to submit an offer. The seller accepted it. The buyer lived several hundred miles away. I had advertised the land widely all over the Internet. However, in the end it was the money I spent money on two postage stamps the caused the land to sell.

Example 3: When I told the seller of this Riverside County parcel that one of my common sales practices was to write letters to neighbors inviting them to buy the land, my client seemed a little alarmed. She agreed that I could write to the neighbors but instructed me NOT to write to a particular neighbor. I didn’t ask why but I said OK. I sent out the first mailing. Unfortunately, none of the neighbors responded. Later the seller lowered the price. As I was preparing a second mailing, the seller told me I could now write to the excluded neighbor, so I did. The originally excluded neighbor contacted me and asked to buy the land. It turns out she was the seller’s estranged sister! The sister wanted to fold the acreage back to the “family farm” that she had inherited so that her parent’s farm would be intact once more. I assisted the sister with a full price cash offer. By close of escrow, the two sisters were on cordial speaking terms.

Example 4: I was listing a parcel in a fancy gated community in Southern California. I wrote to 9 neighbors. Some of the neighbors called me to let me know that they did not like “strangers” (buyers and agents) coming through their community gate to view the land for sale. (Sigh, oh well…) The owner who lived adjacent to the land I was selling had a cool log home in a private location at the end of a road. He was tired of all the people coming down “his” road to look at the land for sale. So when he received my letter, my e-mail address was conveniently at his fingertips. He immediately sat down at his computer, negotiated a price by e-mail, submitted an offer via electronic signature in DocuSign, and closed escrow 30 days later. The seller was happy and the buyer was pleased to have no more “strangers” coming down “his” road.

Conclusion

As you can see, writing to the neighbors works! Try it. When selling land, encourage your Realtor to write to the neighbors!