Looking to invest in vacant land? Here are the most common things you need to watch out for.
When purchasing vacant land, the most common question for buyers is “do I need to conduct a due diligence?” Due diligence is the process of examining and verifying information about property ownership, title and other factors that can impact the value of property. The advantage of doing a good search on your own is that you get all the documents in one place, which saves time and money. This way you will ensure to purchase and develop a property without financial risk.
In a nutshell, you want to make sure the property is deed-able and safe for future development.
Vacant Land is a property that isn’t improved. When it comes to land, you will have a number of things to consider. It may be empty or it may be covered by trees and brush. And though every property is different, there are a few factors you should always look for when considering the purchase of a vacant land like: What type of property you are considering? Does it answer your needs? Why do you want to buy this kind of property? Is it worth your investment? Are you sure about the location, price, and value of the vacant land? and more!
Vacant land due diligence is not that difficult, but there are a few things you need to watch out for.
To perform due diligence on your property, you will have to perform the following steps:
- Ideas of Getting financing
- Visiting the property
- Understanding geometry and terrain
- Perc test
- Checking flood zone and flood risks
- Checking Utilities
- Checking building requirements
- Checking Taxes, delinquent taxes & liens
- Verifying Deed - Easements and Restrictions
- Home Owners / Property Owners Association (HOA / POA)
- Building on Wetlands
- Deed - Easements and Restrictions
Don't forget to check out our blog to get more tips about property analysis.
When inspecting a property, it is important to take note of all information. Do not let the seller rush you into making an offer after close inspection as this may result in an offer that you might be uncomfortable accepting.
If you'd like to learn more about some additional points to consider have a look at buildingadvisor.com tips.
References:
https://easterntitle.com/tips-for-buying-vacant-land-dos-and-donts/
https://rethinkrural.raydientplaces.com/blog/due-diligence-how-to-make-sure-your-land-is-buildable
