Last Updated on Thinking of owning land is a huge challenge for many people because of the various factors involved in getting one. You’ll spend a lot of time searching online, exploring land deals and inspect neighborhoods but you may still not find something sufficient. Perhaps your dream home hasn’t been built yet. In this case, the perfect option may be to purchase a vacant plot of land through local real estate agent and build your desired structure.
Purchasing undeveloped land can be a very complicated process and cost money, from easements and zoning limitations to environmental challenges that could turn your dream home into a nightmare. There is a good chance that you are already searching, only to discover that bare land is scarce in many parts of the country and that available lots can be very limited. However, that doesn’t mean you should choose the first parcel shown to you by a real estate agent or make an impulse buy immediately.
If you want to do land purchase to build your house on, to avoid issues and challenges with buying vacant land, you have to follow these tips for buying land we are giving below to avoid buyer’s remorse.
What do I need to know before buying land?
It’s easier to find a good place to build your home when you work with a real estate agent who specializes in buying and selling plots over one who sells existing properties or houses. The right agent can keep track of available land and notify you when the land purchase moment is ready. In addition, you’ll have access to an expert who’s familiar with the types of financing available for buying land.
In many communities, raw land that’s ready to build on is scarce and is often limited to lots where only identical homes can be built. However, potential buyers frequently overlook a valuable resource when searching for land. As these properties are often listed for less than the land value, you could wind up with a great lot in an established neighbourhood by demolishing the existing house and building a new one.
As for those who are looking for long-term investment, build houses that are comparable in value to those nearby. When you build a $500,000 house in a neighbourhood where other houses are selling for under $200,000, it’s going to be difficult to find a buyer especially when you want to sell it later on.
If you’re taking out a land loan to make land purchases, a lender may find it difficult to finance a house within a price range that is too high or too low compared to other houses in the neighbourhood. If you have an exact house plan in mind, choose a plot of land in a neighbourhood with homes of similar value.
How do I decide to buy land?
A vacant piece of land is one of the most undervalued and misunderstood investments in the world of real estate. The vast majority of real estate investors and real estate agents fail to recognize the advantages of owning raw land. The myriad of problems that are certain to occur with other forms of real estate is no match for the simplicity and stability associated with owning a piece of land purchased at the right price.
While vacant land can be an absolute banker to invest your funds, there are certain things you should consider before you make up your mind to purchase land. These factors include;
The zoning on the property
Before any other consideration, it is important to understand what a property can be used for, and what its highest and best purpose could be. You can usually find out the answer to this question in a matter of seconds by calling your local planning and zoning department.
Inquire about what kind of property is allowed under your subject property’s zoning classification. Once you find out, you can quickly determine if the land fits your need or those of who you plan to sell to in the future
Property Topography
In evaluating a vacant lot, one of the things considered is the property topography. The world is full of places with mountains, irregular elevations, ravines, valleys, and more. When it comes to the usability of a property, a property’s topography can make a big difference. You can determine a property’s topography by using Google Earth or the topography map from Earth point.
Required building setbacks
After knowing the dimensions of the land you’re considering, consult the local planning office to find out the building setbacks for the property. Taking into account the setbacks and regulations with the property, ask yourself if the property still has enough potential to build something worthwhile on it, or it’s useless.
13 Tips you should consider before buying a land
Now that we have finished addressing all the basic stuff, let’s face the main issues and address the tips people need to consider before buying land anywhere.
Share this Image On Your Site
1. Is the property subject to any conversation easements?
The purpose of conservation easements is to restrict some uses of the property while retaining ownership and control of the property. The conservation easement runs along with the property, meaning it applies to multiple generations of landowners. You can find records of the property conservation easements in the county recorder of deeds office, just as with other real estate interests. When you confirm the status of the conversation easements, you can decide to continue with the property if it has one or not.
2. What taxes will be due on the property?
Almost every property in America pays taxes on their properties as it is required by the federal government. Private residences, commercial properties and office buildings are all considered as real estate assets by the government and are charged various tax rates. Before buying a property in any county, you need to confirm the taxes that will be due on the property from the county recorder’s office. That way you’re informed about the tax debt on the property before purchase and can determine if you should go on or not. These days, many counties have provided users with the option of paying property tax online so in case you decide to purchase the property with its tax debt, making payments would not be a hard tax.
3. Is there electricity & Wi-Fi everywhere on the property?
Another tip to consider is the electricity and WIFI situation of the property. When purchasing the property, you need to test for electricity and WIFI connection in every nook and cranny of the house to ensure that the connection works and to ask for repairs on any part that isn’t connected to electricity or getting the WIFI connection easily. This would save you the stress of going over these repairs after you’ve bought the property by yourself.
4. Does the land have any environmental hazards?
There are different types of environmental hazards you should look out for when you want to buy a property. These hazards include chemical hazards, biological hazards, unseen hazards, ergonomic hazards, and electrical hazards. You have to ensure that the property complies with the Occupational Safety Health Act’s which means the property has to be safe to be inhabited. Before making that purchase, ensure that you identify the environmental hazards of the property. If you don’t find anyone then the property is safe to inhabit.
5. Are the boundaries of the property fully marked?
Knowing where the limits of your property lie are essential to property ownership. A dispute will arise if clear boundaries are not established, whether on private property, commercial property, or drilling and mining land. To get a clear picture of the boundary lines, landowners may need to conduct a boundary survey on the property to get an idea. The cost of the boundary survey may differ due to the size of the property, Seasonal variations of the land, the terrain of the land, and your reason for the boundary survey. Whatever your reasons may be, you should find the survey affordable.
6. Is there access to utility sources?
Utilities such as water, electricity, and gas are essential services that have a direct impact on comfort in a home. To use your property effectively, these utilities have to be available. You need to ensure that these utilities are functioning without interruption before you conclude the purchase deal. If the utilities don’t work and you want to purchase, you can ask that they be fixed or you will do the fixing yourself if you don’t carry our proper inspection
7. Why is the property for sale?
This is another tip you should consider before concluding a deal. Sometimes the property was put up for sale by fraudulent acts who defraud unsuspecting people of their hard-earned money. You need to ensure that the property is been sold by the rightful owner and that you’re getting the right value for your money.
8. Who are the neighbours?
The neighbours of any property you want to buy matter especially if you’re one to consider who leaves next to you before moving in. You will need to acclimatize yourself with the area to know if the area suits you perfectly and if it’s up to your target. Accepting to purchase a property without making proper research about the owner can be disastrous in the long run.
9. Is there any nearby future land use planning pending?
You need to know if there’s going to be a future land use of the area you’re considering in the works. This would help you know the plans for the property in case you’re interested. That way you don’t wake up one day and get evicted out of your rightful property. You can get this information at the county recorder’s office as they keep all the files regarding the county.
10. What are the adjacent properties land uses?
What plans do the owners of adjacent properties have for their land? Do they want to drill minerals in the future? Do they want to start a farm? Or what plans do they have for their land? This would help you be decisive with your plans for the property and you’ll get to make the right choice.
11. Is the property in an HOA or POA?
You also need to know what category the property you’re considering falls under. Many counties usually have a property owner’s association or a home owner’s association or even both. You need to know where the property is categorised so you’ll know how to go about issues that arise if you eventually purchase the property.
12. Why owns the mineral rights to the property?
This is another important factor to consider when applying to buy a property. Many properties in the US have had their rights sold off or leased to companies who would later come to claim these rights when they are matured. You need to know if the mineral rights are still intact or they’ve been sold off before you purchase the property to avoid any future challenges or disagreements. You can check with the county recorder to know the status of the mineral rights of the property you want to buy.
Conclusion
The trick with owning property or vacant land is to know the reason why it was vacant initially. Few vacant lots appear appealing at first glance, but experience has taught us that the reason nobody was using them was that they could not be used. If one (or more) of the issues above stop someone from using their property effectively, then, believe me, there is no point in learning this after you’ve got the property.
FAQs
1. What is the best way to buy land?
The best way to buy land in any part of America is to go and see the land and even go further to make enquiries at the county recorder’s office about the property before engaging the agent. Sometimes you can even ask one or two neighbours about the property to ensure you have all the proper information.
2. How do you know if you can build on land?
You would know if you can build on land after it has passed all the tips stated above. If you put the land through these factors and you get enough positive feedbacks then you know the land is ok to purchase.
3. How long after buying land do you have to build?
There is no specified time you have to wait before you start building. You the owner is in charge of the timeframe and speed at which you would set up a structure on your recently acquired land.
Leave a Reply