Buying your first piece of land is an exciting milestone. Unlike purchasing a house, buying land offers a blank slate to build your dream home, start a farm, or simply own a piece of the great outdoors.
However, this process comes with its own unique set of challenges. To help you get started and avoid any early costly mistakes, here are four essential tips to guide first-time land buyers through the process.
1. Start with a Land Inspection
Before you make any commitments, it’s crucial to walk the property and inspect it thoroughly. Get a feel for the terrain, note its key features, and check the property boundaries. This is your chance to identify any potential red flags that might not be obvious from a listing.
Pay close attention to signs of flooding, such as water marks on trees or marshy areas. Also, confirm that the property has clear and legal access. A beautiful plot of land won’t do you much good if you can’t get to it easily. A thorough inspection will give you a clear picture of what you’re buying and help you avoid future surprises.
2. Research the Location
The old real estate mantra “location, location, location” is just as important when buying land as it is when buying a house. Look into the surrounding area to see what amenities are nearby, like grocery stores, schools, and hospitals. It’s also wise to research any planned infrastructure projects, as new roads or developments could impact your property’s value and your quality of life.
Additionally, you need to check local zoning laws and land-use restrictions. These regulations will determine what you can and cannot build on your property. Understanding these rules up front will ensure your plans for the land are legally permissible.
3. Understand Utility Access
Having access to essential utilities like water, electricity, and internet can make a huge difference in your building plans and budget. Don’t assume these services are readily available. For example, there’s a lot to know about water rights for land. Just because you see a river doesn’t mean you have access to it or any of the groundwater below your property.
If basic utilities are not already in place, get quotes for the cost of connecting them. Running power lines or drilling a well can be expensive, so you’ll want to factor these costs into your overall budget. Knowing this information ahead of time will help you make a more informed financial decision.
4. Verify Legal and Title Details
Finally, something to keep in mind when buying land for the first time is that it’s your responsibility to ensure the property’s legal and title details are in order. A clear title means the current owner has the undisputed right to sell the land, and there are no outstanding liens or legal claims against it. Hidden disputes can create major headaches and financial burdens for a new owner.
Since this is a lot to ask of a first-time buyer, it’s best to hire a professional, such as a real estate attorney or a title company, to review all legal documents. They can perform a title search and examine survey reports to confirm that everything is as it should be. This step is a small investment that provides significant peace of mind.
