Top 10 Tips on What to Look for in Buying Land

Thinking of buying land? Whether 1/2 acre for a house or 1,500 acres of farmland, you’ll need to consider budget, location, zoning laws, soil quality and utility access and more. This article will help you know what to look for when buying land so you can make an informed decision.

Quick Facts

• Set your budget before you start looking at land, including upfront costs, property taxes and the need for a survey. Be sure to include maintenance and unexpected expenses for the next few years of owning the land.

• Research zoning laws, environmental features and utility access to make sure the land meets your intended use and avoid headaches.

• Research future development potential and local market trends to make smart decisions for your land investment.

Determine Your Budget

Creating a budget is a crucial step in any land purchase process. Lot loans are riskier for banks and generally require higher down payments and interest rates. They are also riskier for you as well.

Construction loans may be bundled with lot loans if building starts shortly after purchase. Also know that property taxes usually increase after a home is built on the land.

Before you start looking at properties, make sure you have a clear picture of your financial situation. Research the different mortgage options to know how much you can borrow and the interest rates from lenders. Being pre-approved for a loan will give you an idea of what price range you can afford and avoid looking at land that’s beyond your means.

We have a local lender in your area that can give you advice based on your situation and let you know what is possible and give you all of your options.

When setting your budget for buying vacant land, include higher upfront costs and property taxes that come with these types of transactions. Owning more acres means more space for structures, gardening or recreational areas but also more fiscal responsibilities. These should be factored into your overall budget to avoid financial shocks later.

Know that many land purchases are often done in cash because lenders are less inclined to provide funds for undeveloped land. While you have options we can help with, you need to know what is possible for your specific situation to make sure you do not miss out on the perfect property.

Having owned multiple larger tracks of land over the years, I assure you that there are often more unexpected expenses than with traditional home or property ownership. A small property line dispute with a neighbor could require a survey ($5k+) and even a lawyer.

Remember that securing a mortgage usually requires a survey to be done before funds are released for buying vacant lots as this will protect against future disputes on construction loans on the property. Make room in your budget for a comprehensive survey that will confirm the legal details of the parcel and reveal potential issues like easements or boundary oversteps.

Even if a survey is not required for your loan, it can be helpful to budget for one after. A friend of mine in Michigan bought a parcel they thought was 14 acres for a new farm in 2024. A survey after the sale was completed showed that the property markers they and the seller had been looking at were not at the full boundary of the property. After verifying everything with the plots and land history, they realized they had acquired an addition 3.1 acres for a total of 17.1 acres. Both sides were still happy with the purchase, but without my friend having budgeted for and having a survey conducted, they would have missed out on a large portion of the property.

Location and Accessibility

The value and usability of your property is greatly determined by its location. Properties in areas with good road access and near amenities like grocery stores and parks are more attractive and therefore more valuable. When choosing a piece of land whether in the midst of city life or rural landscapes make sure accessibility is top priority.

In isolated areas having public transportation nearby can greatly impact residential properties. Real estate agents and others looking to buy or rent will be drawn to locations that reduce travel time due to proximity to public transportation—this not only improves daily living but also increases both immediate appeal for potential occupants and long term real estate investment return.

And lastly, check how pedestrian friendly the neighborhood is or will be and other local infrastructure like walking paths and bike lanes which can increase interest in a property. Investing in areas that are planned for infrastructure development will increase land value and attract more residents and businesses. Be aware of upcoming urban development projects so you can make an informed decision when investing in real estate.

Zoning Laws and Restrictions

Understanding zoning laws and restrictions is key when buying land.

Yes, even if you are buying land outside of an incorporated city or town, zoning laws and restrictions likely still approve.

I have friends that purchased land in a rural Tennesse with the plans of purchasing a tiny home only to find out after having it delivered that they could not get a certificate of occupancy because of a state law.

There may also be laws governing what can be done with the property and how. I live in Georgia, and while harvesting of trees for timber is a common occurance and part of fire safety and forestry maintenance, you have to have a state certificate for any work done in a:

“Protected mountain” means all land area 2,200 feet or more above mean sea level, that has a percentage slope of 25 percent or greater for at least 500 feet horizontally, and shall include the crests, summits, and ridge tops which lie at elevations higher than any such area. – GA R&R Department 391 » Chapter 391-3 » Subject 391-3-16 » Rule 391-3-16-.05

These rules dictate how the property can be used, whether it’s for living spaces, business operations or manufacturing activities. Since these laws vary greatly from one place to another, it’s essential to know the rules specific to your piece of land.

To make sure your plans are in line with local requirements, talk to the local building department to get clarity on zoning restrictions. Zoning categories like agricultural zones exist to preserve farm land from incompatible uses—knowledge that will help you avoid legal issues and future problems with property development.

You need to get the right zoning permits as proof that your use of the land complies with local ordinances. Failure to do so can result to heavy fines or severe legal consequences including demolition orders for unauthorized structures. Prioritize checking if your plot’s zoning fits your planned project — this includes verifying that any setup involving utilities conforms to municipal regulations.

Soil Quality and Composition

The usability and value of your land is greatly determined by the quality and composition of its soil. By doing soil tests at different depths you can determine the soil’s makeup and make informed decisions. Soils like sandy, silt or clay each have unique properties that affect their drainage and nutrient retention. These characteristics will determine what type of development is best for them.

To check the soil profile and quality of specific areas use the USDA’s Web Soil Survey—a useful tool for that. Also check for hard pans in the soil as these layers can restrict root growth and water permeability—problems that can be solved by deep ripping to improve overall soil condition.

Knowing these will help you confirm that your land fits your intended use. These uses can be from agricultural to construction projects and others.

Water Supply and Sewage Options

When buying land, make sure there is a water supply and sewage disposal system in place. Check if there’s a municipal water supply available. This is usually available in areas near towns. If not, you may need to drill a well—usually requires at least 20 feet of casing—to get access to clean water.

My well at our mountain property is ~600′ down, with water having been reached at approximately 325′.

Groundwater availability and quality can vary greatly depending on local conditions.

For properties not serviced by city sewers, septic systems are used. But depending on the rules in your area and where your property is located, alternatives like composting toilets or graywater pits or even hookups to nearby sewer lines may be options too. Knowing these options and their costs will help you make informed decisions and avoid costly mistakes when buying land.

Utility Access

When buying land, priority is given to utility availability. The viability and financial plan for your property can be greatly affected by potential connections to utility services. Especially with electricity, the cost of extending power lines from existing grids can vary greatly depending on distance. In remote areas, while alternative energy like solar or wind is a greener option, it requires big upfront investment.

You should consult local utility companies to determine the cost of bringing utilities to the property.

Let’s also not forget about cell signal. Having good cell reception is important, as lack of service can affect daily life.

For those buying land in remote areas, getting reliable connectivity for internet and telephone services is key. Having access to these modern conveniences not only makes your property more marketable but also attractive to future occupants or investors. You need to consult with experts who can give you insight on the logistical and cost implications of setting up utilities that fits your intended use of the property.

I have quite a few friends in our area and across the country have added a microcell from their cell provider to have coverage at their house. Even then, the range of a microcell is less than two kilometers wide, so we have to take walkie talkies when out on property.

Mineral Rights

Buying land requires understanding of mineral rights. Having the surface does not automatically give you access to the minerals underneath. These can be held separately or transferred. It is actually uncommon in many states to have mineral rights held with the above ground owner of the property.

In areas where mining is common, it’s important to know if you have ownership of the underground resources especially with frequent mining or drilling activities.

Is this news to you? It likely will not impact your ownership but it could. Don’t worry, we have an article for you with everything you need to know about mineral rights.

Consult with a real estate attorney knowledgeable in mineral law to unravel the complexities of mineral rights. Mineral rights may have restrictions that can limit excavation depth or impose extraction timeframe as protection for those who own the surface.

Knowing these rights will prevent disputes and give you full control of your property.

Property Boundaries and Surveys

Make sure you know the exact boundaries of your property to prevent conflicts and use the land properly. Properties may have setbacks that dictate how far structures must be from property lines. Hire a professional surveyor to uncover potential hidden issues like easements or encroachments on the property. For vacant land, get an ALTA survey for a detailed analysis of legal boundaries and obstacles.

When you’re eyeing that perfect piece of land, it’s crucial to know exactly what you’re getting into. That’s where an ALTA/ACSM survey comes in handy. Let me break it down for you:

• ALTA stands for American Land Title Association
• ACSM is short for American Congress on Surveying and Mapping

This survey is like the Swiss Army knife of land assessments. Here’s what it does for you:

• Maps out every nook and cranny of your potential property
• Highlights any easements or encroachments you need to know about
• Gives you the most detailed picture of the land’s legal boundaries

Think of it as your property’s biography – it tells you everything about its past and present. This survey is especially useful if you’re:

• Buying a complex piece of real estate
• Investing in commercial property
• Just want to be extra sure about what you’re buying

By getting an ALTA survey, you’re arming yourself with knowledge. It can uncover hidden issues that might cause headaches down the road. So, if you’re serious about your land purchase, especially for vacant land, this survey is your best friend. It’ll help you make a smart, informed decision and avoid any surprises after you’ve signed on the dotted line.

Understanding the access to the lot is crucial, as landlocked properties can create significant difficulties. If buying undeveloped land, you may need to create and maintain access roads. Land can be effectively landlocked if there is no legal access from a public road.

Surveys will confirm that the legal description of your land matches what you are buying, including the correct amount of acres. This survey will show you the rights-of-way and intrusions that will affect how you’ll use your property.

Doing a thorough title search is crucial to uncover existing claims against ownership like liens or encumbrances and conditions on use of the land. This will give you no surprises when you buy the property and will prevent future litigations.

Environmental and Topographical Features

The characteristics of your vacant land, including environmental and topographical features, will greatly affect its developability. Building in mountainous areas requires advanced construction methods to deal with shifting soils and extreme weather conditions. Tackling hilly terrain requires extensive grading and planning to address slopes.

Our driveway is a little less than a mile long to the top of the mountain and required 400 tons of gravel – that is a lot of 23 ton dump trucks.

Be aware of environmental hazards when developing land. Being in a flood plain or adjacent to wetlands is one of them. Checking the prior use of the land is critical to avoid purchasing contaminated property. Buying land typically requires more research than purchasing a home due to unique factors involved. Environmental tests will reveal these issues that will guide the development process.

While flat land may be easier to build on since you don’t need to manage slopes, they often require more elaborate drainage systems. Keep these in mind so you won’t make expensive mistakes during development.

Local Ordinances and Building Permits

Make sure you understand the rules and permit requirements of your local building department to avoid problems with enforcement agencies or inspectors. These community rules may include requirements for roof and wall insulation, proximity to bodies of water, water systems, livestock care, and waste management. Follow these closely so your construction project won’t have legal issues.

Hire a permit facilitator to expedite the process of getting permits and ensure compliance with local building codes and zoning ordinances. Contact your local building office to find out the specific requirements for your property. This will keep you in compliance with community rules.

Future Development Potential

Consider the future development potential of the land when making your decision. Property taxes can vary greatly depending on the location and use of the land and will increase after you build. Talk to a real estate agent or neighbors with similar properties to research the typical property tax rates in the area.

Job growth and population growth are economic indicators to consider when thinking of the future value of the land. Local news will tell you of upcoming developments that will increase land value. Consider these so you won’t make costly mistakes and your investment will be sound.

Next Steps

Now that you know what to look out for when buying land it’s time to take action so you don’t miss out on your dream property. Start by setting up a property search that’s tailored to your needs and wants. This will keep you up to date with the latest listings and what’s happening in your local market so you don’t miss out on new opportunities.

Talk to our local vetted real estate agent who can give you expert advice and insights into market trends, zoning and environmental hazards. They will be your guide through the land buying process.

Also keep an eye on local news and the local council for any changes to zoning laws or upcoming infrastructure that may impact your decision. By being proactive and doing your research you can make an informed decision and get the land of your dreams for your new home or investment.

Remember, the secret to a successful land purchase is being informed and prepared. Happy hunting!

Now, let’s go find some land to buy.

FAQs

Why do I need to determine my budget before buying land?

You need to determine your budget before buying land so you can afford it and won’t be disappointed. This will give you clarity to explore financing options and prepare for additional costs so you’ll be ready.

How does the location of the land affect its value?

Land value is greatly affected by location. Properties with good accessibility and proximity to facilities command higher market prices.

Invest in prime real estate locations and get returns for years to come!

What are zoning laws and why are they important?

Zoning laws are important because they govern land use so areas are developed for residential, commercial or industrial use.

Knowing these laws will help you plan your projects and avoid legal issues.

Why should I do soil test before buying land?

Before buying land, you need to do soil test. These tests will reveal the nature and capacity of the soil and if it’s good for construction.

This will impact how you’ll use your land and its value so you can make a smart decision.

How do I determine the future development potential of the land?

Research property taxes, job growth and local news about upcoming projects to determine the future development potential of land.

You’ll make smart decisions that will lead to great investments!