Consideration When Buying Land

To paraphrase Will Rogers, put your money in land, because they're not making any more of it. But did Will give sound advice? If you're considering the purchase of a piece of property as the site for a vacation getaway, retirement cottage or simply as the next chapter in your personal history as a homeowner, there are a few things you should consider before making an offer on a yet undeveloped piece of America.*

Make a Wish (List)

There are plenty of ways to find land for sale. The Internet you can get a general sense of the market from the internet, but there's no better way to get a feel for an area you're considering than to drive around. You may even find a sign posted offering property that appeals to you. Be sure to check the classifieds in the local paper, and ask the locals for leads.

Once you've zeroed in on a specific area, there is seldom a better way of locating just the right parcel than working with a real estate professional who understands the local market. With superior knowledge and access to listing information, networking among agents, negotiating skills and experience with local authorities and area contractors, an agent can be an invaluable resource in your search for the "perfect" property.

Even if you are interested in a FSBO (For Sale By Owner) property, putting the skills and experience of a real estate professional to work for you can bring your transaction to a successful conclusion smoother, faster and on terms that are favorable to you.

If you're looking at building lots, is the site truly "Buildable" – A lot that is represented as "buildable" may not allow for the construction of the home and amenities you've envisioned on the site. Ensure that your offer is contingent on architect/engineering inspection/approvals for suitability for your project.

Utility Easements – Review the survey of the property to determine what utility easements exist, their location and the potential impact on construction, and on aesthetic issues that could affect your enjoyment and/or resale of the property.

Lot Coverage & Other Restrictions – Local zoning typically includes restrictions on the size, building materials, placement and height of fences, and positing/setback of structures on a property.

Homeowners' Association – Purchasers of property sometimes learn of the existence of a Homeowners' Association after the deal is closed. Homeowners' Associations can impose deed restrictions and other regulations that may prevent the eventual construction of your home from going forward as planned.

Proposed Public Works Projects – Proposals for public works projects such as overhead utilities and highway construction are usually filed years in advance.

Utilities – Make sure you are clear on what utilities are available on your lot and what the approximate costs will be to supply them. Often, in more rural settings, you will need to bring power from a somewhat distant pole to your lot, dig a well, and install a septic system. If you are a high speed internet user, check to see if service is available.

Change in Tax Status – The owner of land that is currently zoned for other than single-family residential construction (farmland, for example) may incur unfavorable property tax consequences upon approval for a change in use.