When you are aware of what questions to ask when buying land, you are on the right track. No investment is risk-free. You need to do your due research before making a deal. So, if you have decided to buy land, always keep in mind that land-buying tip always revolve around research and market study.
Investing in rural land is a smart move to diversify your investments while holding real assets. Don’t miss out on this opportunity to make your investment portfolio stronger. Buying land is a big and challenging task, but we have got you covered.
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What are the Risks?
There are many options available when it comes to finding land for sale. Whether you want it from Oregon, Florida, Arizona, Klamath County, New Mexico, Tennessee or the world-famous Grand Canyon State. You can always look through land listing sites and pick a few acres of land in a perfect location.
While vacant land may appear like a perfect deal when you see it in person. However, it is very important to ask some land related questions before purchasing the property. A thorough research presents the success factors for potential buyers before buying a piece of land. It assures them to acquire the right land, for the intended purpose.
It is important to understand that each rural land is different and its cost will vary based on factors like location and potential uses. Consider asking the questions mentioned below to secure your first or another land investment.
What is the Chain of Title?
One of the land-buying tips emphasizes the chain of title. In simple words, the chain of title is a record of past ownership transfer of the property. A buyer must have related questions to ask when buying land. It provides a history of who owned the property before. Potential buyers can even use the chain of title in their research to find out about the previous owners, easements, and other restrictions on the property.
Nonetheless, land buyers often overlook checking whether the seller is the true owner of the land or not. There is always a chance that the previous owner did not clearly transfer the ownership to the seller, or the seller is intentionally selling the land that they don’t own.
To ensure the land you want to purchase, you should check the proper chain of title and reap all the benefits of land ownership. Ask the seller to provide you with a copy of the deed. If they do not have it prepared, check the deed history with the county.
What Can You Do with the Land You Intend to Buy?
When purchasing land in different regions, it is important to consider a few questions. One of the most important questions is about zoning and HOA/POA restrictions. Vacant land can be classified into three categories: residential, recreational, and undeveloped. It is essential to understand the restrictions on the land to determine its best use.
It is advised to buy land that is zoned according to your needs. Zoning is the process of dividing land into zones for specific purposes, such as commercial or residential areas. Unlike land planning and land use where people adapt vacant land as per their needs, zoning regulations are predetermined.
To get accurate information about the land you are planning to buy, it is crucial to reach out to the Planning and Zoning Department. Since every state and county has different zoning regulations, it is important to get the right information before buying land.
If you are looking for land for recreational purposes, seek out areas that are zoned for recreation. These areas will be suitable for camping, hunting, fishing, and other recreational activities. On the other hand, residential land will be suitable for buyers who want to build their dream house.
Are There Any Conservation Easements on the Property?
A topic that should be included in your list is the issue of conservation easements concerning land ownership. Landowners often establish conservation easements to take advantage of tax benefits. A conservation easement is an agreement that specifies the portion of land that cannot be developed and allows a government agency or local land trust to oversee it. Usually, conservation easements are permanent and prevent owners from clearing, hunting, and planting on the land to preserve natural resources.
If you are purchasing land for farming, hunting, or any other purpose, it is important to verify it with the county or city authorities. Check if there are any conservation easements on the land or any breach! If you decide to buy a property with a conservation easement, make sure to ask relevant questions about how the easement affects the land.
What Are Property Back Taxes and Zoning?
One essential tip for land buyers is to be sure of the property’s back taxes and zoning regulations. Past taxes refer to the outstanding taxes that the previous owner has not paid, and a potential buyer must know about them to avoid any extra costs in the future. Understanding the zoning regulations of the property is equally important as it will determine what kind of activities can be conducted on the land.
What Utilities Are Available to Add to the Property?
It’s always important to have a list of questions to ask when purchasing land. This is because vacant properties may or may not come with all the essential utilities, such as water, electricity, and sewer systems. Before making a purchase, it is important to conduct proper research on utilities that are available on the property or need to be installed. This will help you make an informed decision and avoid any unexpected complications in the future.
If you are into off-grid property and privacy, it is a good idea to utilize natural resources. Those who are planning to buy land in a rural area can rely on solar energy and preserve rainwater to diminish costs.
If your land is closer to the city, the chance of getting access to all the utilities that comes with the property is higher. It is a good idea to contact the utility service provider if you need information about property utilities like land boundaries, county’s GIS maps, and related details.
With various utilities and benefits of buying land check and the best deals.
How Do You Approach Someone When Buying Land?
Seeking help from someone while buying land comes under land buying tips. Make sure that you look for someone knowledgeable and experienced. You have the potential to listen to you well and with whom you have a good rapport.
When Should You Buy a Piece of Land?
Certainly, buying land is always a great investment when it comes to real estate. You can consider buying land at any time as it’s a versatile option with many benefits. Before investing, it becomes crucial to understand the land value you must consider in buying.
However, as the government policies are getting better both at the macro and the micro levels, the prices are getting low owing to the low liquidity. Hence, it is a great time to make a buying decision.
What Are the Rights Associated with This Property?
As a property owner, you can have the privilege to enjoy the benefits associated with your property. These benefits include road access, development rights, mineral rights, and many other rights. To ensure that you make the most out of your investment, it is important to ask the right questions when purchasing land. This will help you gain a better understanding of these factors and make informed decisions.
Are There Any Environmental Hazards That I Should Be Aware Of?
It is important to consider environmental hazards when purchasing land. Toxic runoff in water, chemical deposition, and underground pipes containing soil can all negatively impact your land and pose a risk to your health. Therefore, it is crucial to ask environmental questions before buying land.
Has the Soil’s Percolation Test Been Done?
This helps you to know whether the land can absorb water from the septic system. For this, you can hire a soil scientist to study soil types, their topography, and their ability to absorb water.
Are the Property Boundaries Marked?
This is one of the most important questions to ask when buying land, because, if there are any uncertainties regarding your property boundaries, you need to ask whether any sort of survey has been done recently.
Are There Any Water Features Available on the Property?
A property is worth buying where basic amenities are accessible such as water, roads, and electricity. A water feature refers to a creek, river, lake, spring, or pond that already exists on the property. The water feature can likely increase or decrease the potential value of the property. So a buyer must prioritize these things to consider in buying property because these factors can affect profitability.
Ask About the Property Location and the Area.
Location is one of the important factors that you need to consider before buying land. If you are planning to buy land, you should make sure it has some resale value. Check for the surroundings, environmental hazards, schools, and hospitals’ accessibility, and proper drainage channels.
Is There Proper Access to Electricity and Water?
One of the land buying tips reveals a buyer should make sure that the land has good functional utilities. You must not buy land in an area that has no light for several years or doesn’t have good water drainage.
What Is the Reason for Selling the Land?
You must know the reason for selling the land that you are purchasing. Who are the adjoining neighbors? Are there any property line disputes with owners and neighbors? You must prepare such questions to ask when buying land.
Has the Land Been Registered Under Conservative Easements?
This means that you won’t be eligible for planting or cutting trees. Though this rule is beneficial for the environment, it directly restricts the usage of your land. Apart from that, there are few things you should check with the county or city and then you should have questions to ask when buying land, such as:
- Any Tree-Cutting or Land-Clearing Restrictions?
- What are the required permits and fees for your intended use?
- Are there any restrictions due to water frontage, steep slopes, wetlands, historical or cultural sites, floodplains, endangered species, or other issues?
- Are there any laws that affect your intended use?
- Will roads need to be constructed to reach the property?
- What are the annual property taxes?
- Who owns the minerals rights?
Bottom Line: Do your research and ask land related questions.
Those are some of the essential questions to consider when purchasing land, whether you are investing in real estate for the first time or buying your first rural land. Having answers to those questions will help you determine whether your deal is profitable. Once you are satisfied with those answers, you are ready to purchase the property of your dreams. When it comes to buying land as an investment, APXN Property offers unparalleled expertise for seasoned investors. They provide a wide range of prime land properties carefully selected to diversify your portfolio and gain high appreciation. Count on APXN Property as your reliable partner in land investment, opening up endless opportunities and maximizing the benefits of buying land.
