Home prices are continuously rising in the USA due to lack of availability and growing demand. The shortage of single-family homes The shortage of single-family homes shifted investors’ attention to the land. In the meantime, many homeowners are planning to get away from subdivisions and buy acreage for higher profits. Whether you are investing in land for profits or purchasing a piece of land for personal reasons, it would be beneficial to read all the tips for buying land provided in the blog. It might look easy to locate and purchase a land parcel at a reasonable price. However, there are plenty of details to keep in mind to limit the risks involved in this niche of real estate investments. Many single-family home buyers might have never thought about it. Here we will give you a detailed overview of the land buying process and provide you with tips to help you experience all benefits of land ownership.
Most investors prefer buying land instead of putting money into stocks or bonds. You might have heard many times that buying a land parcel is less complicated than buying a house. Besides that, we must be aware of the problems of house flipping. You might discover termite damages, roof leaks, foundation issues, electrical or plumbing issues during inspection. Everything mentioned above is true. However, the land also comes with a set of problems. In house flipping, you must fix all the issues before flipping a property. So when buying a lot, it’s crucial to identify and deal with problems associated with the land parcel. Let’s dive into tips for land buying to help you make well-informed decisions, negotiate better land for sale deals, and avoid risks.
1. Investigate the Region
It might seem a complicated and time-consuming process. But you only need Google maps, satellite images, and terrain filters to do it quickly. Also, it’s imperative to visit the property yourself. You can get a clearer picture of what the terrain is. We’d recommend you see the land before buying, even if it’s far from your place. Visiting a property in person gives you a better understanding of its quality, value and determines the best possible uses.
2. Is the Land Cleared or Treed?
When we use Google maps to check out the property, there is a chance we are looking at the older satellite picture. Therefore, it’s always crucial to see it in person. You can find out whether the land is cleared or treed while you’re looking at the area. Clearing a treed land can be troublesome as there are regulations. For example, In Florida, you need to get a permit if you want to cut down a tree that is more than 12 inches in diameter. You need the approval to cut big trees. Moreover, you may need to plant new trees to compensate for the trees you cut down. Be very mindful when buying a land parcel and ensure you know the features of the land you intend to purchase.
3. Find out if the Land has Wetlands on It
What is a wetland? We can understand it this way. Wetlands are regions where the soil is flooded by water seasonally or all year long. It significantly reduces the value of the land since you can’t do anything on it. Luckily, we can make use of a tool, Wetlands Inventory Mapper. It allows you to search and see where wetlands on lands as per government and prevent buying a property with wetlands on it.
4. Check If the land is in a Flood Zone
FEMA settles what land falls under the flood zone and has a flood map in which you can find out if any part of the land you intend to buy is in a flood zone. If your land comes into a flood zone, you may dig a pond in the flood zone, use that clean fill to develop neighboring land, and build a house there. On the other hand, wetlands are protected-you can not modify that land. Knowing your flood zones help you avoid the unpredicted problems and be aware of challenges that could arise when selling or doing something on the property you are buying.
5. Make sure the property has Legal Access
When you purchase land in a rural area you need to verify access to the road. Legal access may or may not be cleared or improved. Access is usually either by direct access to a county or city road or by easements define in deeds or other legal filed documents. We recommend land buyers ensure access to the county-maintained road.
6. Is There Access to Utilities?
Depending on what you are doing with the land you may want access to electricity or other utilities. It can be expensive to bring electricity to your property. We’d recommend you choose a Land that fits your needs. If you want utilities, we recommend you buy a property with utilities already nearby.
7. Cell Service
Whether you plan to sell your land or build a house in the future, cell service may be on your list of needs and can make your land more valuable. When you’re out examining the region to see if the land is treed or cleared and find wetlands, be sure to check cell services. Another thing to pay attention to is the internet.
8. Endangered Species
Endangered species are another concern that needs your attention. In Florida, for example, there are endangered gopher tortoises. You need to pay approximately $6,000 to legitimately get them off your property. Ensure there aren’t any endangered species when buying land.
Land can be zoned for commercial or residential use. As a buyer, you need to check the property you are buying to build a house zoned residential or be aware of zoning when you buy a piece of land for any purpose.
Related: Land Maps with Property Lines – Why It Is Important to Include?