Are you a first-time land buyer? Does the whole process seem overwhelming? Or do you need help figuring out where to start or what is essential to consider? You have come to the right place if this is where you are. In this blog, we will cover some things you need to think about BEFORE buying land. These tips are great if you are worried about getting scammed or afraid that you could invest in a bad land deal.
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Tip #10: Where are You Looking for Land?
A Google search will suffice, but it will yield what seems like an endless amount of results. To avoid information overload and the stress of infinite scrolling, try looking at websites that specialize in posting land for sale. An excellent example of one is LandHub.
Tip #9: Look into the Property Taxes of the Places You are Interested In
When searching for land to buy, you want to ensure low property tax rates. For example, the property taxes in Idaho are much lower than other states at .69%. You also want to ensure that the property has no property back taxes. If they do, avoid those. Those are the current landowner’s mistakes, and you don’t want to be responsible for them.
Tip #8: Think About Whether You Want Your Property to be Linked to Any Associations
I can guarantee that almost anything you have heard about the HOA is negative. No one likes the HOA (Homeowner’s Association). They have too many rules on how your property should look, which stifles many people’s creativity and preferred aesthetics. On top of telling you how your property should look, they will ruthlessly harass you over them.
There is also a POA which stands for Property Owners Association. If you only want land, this association may target you. Their primary purpose is to support other associations and their members. They also combine their fees with the HOA and COA (Condominium Owners Association). If you don’t want to deal with any of these, avoid properties linked to any associations.
Tip #7: Make Sure the Seller has the Deed or a Chain of Title
There are a lot of scammers out there. Believe it or not, people will put up land for sale that doesn’t belong to them. Why? They want to get their hands on your hard-earned money. This kind of scam is said to be rare, but it does happen.
To avoid things like this, ask the seller if you can see a copy of the deed. It could be a red flag if they don’t have it. There is something you can do to help the situation. You can check the county’s website for the deed history. You will need the APN (Assessor’s Parcel Number) to do this.
Tip #6: Know What the Zoning Laws Are
One of the most important things to ask a seller about is the local zoning laws. Something is amiss if someone is trying to sell land and avoids the topic of zoning laws. The seller may not know the local zoning laws. If that’s the case, they are probably not trying to pull one over on you. However, they need to look into it to be an honest seller.
On the scummy side, they could realize how restrictive the zoning laws are for landowners and don’t want you to know about it. You can call the local county if you suspect this is the case.
Tip #5: Will You Have Access to Utilities?
Most people want access to utilities whether they buy land or move into a new home. It most likely comes down to what you’re using the land for, but you should ensure all these things are available at the location.
Tip #4: Working with an Agent May be a Good Idea
Working with a real estate agent could benefit you, especially if you’re a first-time land buyer. Agents can help you work out the more complicated parts, such as negotiations, due diligence, and closing the deal. When searching for an agent, it would be in your best interest to find someone that has experience with land deals.
Tip #3: Make Sure Your Finances are in Order
This tip may seem like a no-brainer, but it is still important to note. You need to know how much you can afford without breaking the bank. Calculate a reasonable budget and stick with it. Did you know that most land purchases are made with straight-up cash? That’s another reason why knowing how much money you can shell out is vital.
Tip #2: Get a Survey
Having a surveyor look at the property is a smart move. You want to know where your boundaries are so it doesn’t become a problem later. To make things easier on yourself, you could purchase land that has already been surveyed.
Tip #1: Don’t Let a Seller Try to Rush You
Buying land anywhere is an investment. You will want to take your time with making the decision. Taking time to scope everything out, look into the history of the land, and read up on surveys and soil reports will allow you to spot any unforeseen problems with the land. If a seller is trying to rush you, there may be a reason they want to get rid of the land so fast.
Hopefully, these tips will make you feel less stressed as a first-time land buyer. It may sound like a lot to handle, but ensuring you have all your ducks in a row will make the transaction smoother. You will also be less likely to close on a bad deal.
