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Monday, 26 August 2019
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This Old House - Do-it-Yourself

Plot Purchasing: The Top Tips for Buying Residential Land

Written by Posted On Saturday, 20 July 2019 00:30

Are you thinking about purchasing residential land? Before you do, read this guide to learn the top tips for buying residential land.

Buying commercial and residential land is hot right now. Land has always been a worthwhile investment for people looking to buy and hold. If this is your goal, it's a solid investment.

For those who buy for the purpose of building new properties, its value tends to increase significantly over time. Whether you're buying and building as a real estate investor, or just want a good place to put up your own home, the process can be quite overwhelming.

This is even more so when you're buying the first one. So, to avoid common pitfalls and expensive mistakes, make sure to follow the tips outlined here. 

Get the Land Surveyed

Carrying out your own survey on your intended residential land is important. It doesn't matter if the seller had already done it. It's not a smart idea to rely on their survey. Instead, get your own done.

This is even more important when you're looking to resell the purchased land in the future. Buyers tend to look for your name in the surveyor's certificate.

Once it's not your name, the survey certificate isn't reliable. Even more, this will help a lot if a boundary dispute ever comes up. 

Make Sure it Has No Liens

The title and deed of the residential land you intend to buy shouldn't have any liens. If it does, it means you're at risk of losing the land in the event of a default or something similar.

The best thing to do, therefore, is to hire an attorney to investigate the title and deed that comes with the land. Existing liens mean you should avoid the title or seek out the terms.

We recommend outright avoidance until the seller settles his issues. Once that's done, you can then buy the land from them.  

Pay Attention to Rising Trends

Where's the new housing allocation going to be? Where does the city plan to start selling residential lands? This is something you need to check out before buying your land.

While you can buy land in a developed area, people who buy for the sake of holding and selling later will get good deals from going to new sites. 

Go check out the newly developing parts of town, and see if there are good land deals there. Check out the city's planning commission and see what their housing allocations are like.

This will give you an idea of where they intend to start building on next. The returns from investing in newly developing or soon to be developed areas might take a lot longer than buying available lots in the developed parts of the city. 

Look for Dilapidated Structures

If you're hell-bent on buying in developed areas, look for rundown apartments or dilapidated buildings that you can tear down. Naturally, the land here will be more expensive, but the returns can be huge.

And it can move fast too if it's properly located. If you're lucky though, the price of the rundown property may be even less than the land. You never know. 

There's hardly any undeveloped land in densely populated metros or downtown areas. So, this should be your plan of action if buying in a city is mandatory. 

Always Do Your Due Diligence

Some sellers will probably tell you just about anything to sell their land. Take everything they say at face value and doublecheck them. Do your due diligence.

Check for things like zoning requirements if you intend to put up a pretty sizable structure. For instance, if you intend to put up construction companies in Hawaii, you need to be sure that the area is zoned for that kind of commercial activity.

It's a known fact that you can't put up a gas station in a residential area. The same goes for skyscrapers in areas zoned for two-story buildings.

Every city has zoning areas for specific property types. Check with the zoning commission before you do anything. And if you want to build a residential home, find out who your neighbors are.

It may not look like an issue in the beginning, but it almost always does later on. You want to make sure that you have likeminded folks as neighbors.  

Adjust Your Expectations

As a rule, be patient if you're investing in residential land for the sake of reselling. Most newbies think they can buy the land and flip it in a few months. We're not saying it doesn't happen.

We're just saying be mindful of the state of the market and how land appreciates in value. Most times, land takes years to appreciate significantly. If you can't wait that long, you might want to reconsider.  

Avoid Flood Plains, Eriosions and Mudslides

As much as possible, find out the topography of the area and land you're buying. Pay attention to things like flood plains, erosion-prone areas and areas with past incidents of mudslides.

This is even more important if the residential land is considered cheap for its location and size. This is not to say you won't occasionally get good deals from sellers who have an urgent need for cash.

All we're saying is find out why the land might be considerably cheaper and why. The topography is very crucial.

Get a Land Specialist

Sure, you can lookup residential land for sale offers, and go buy without anyone's help. But, it's always better to hire a land specialist who understands the intricacies of land buying.

At least, do that for your first few lands, until you understand the business completely. This will save you a lot of headaches in the future. 

Is That All on Buying Residential Land?

Well, the aforementioned tips should help you secure good residential land.

But, if you need a few extra tips, consider road access, get your financing together, and find out the value of surrounding properties.

If you need more proven tips that will help you buy land successfully, check out Realty Times. 

Listing Additional Info

  • State: Indiana
  • Address: 3613 Heliport Loop
  • City: Bloomington
  • Zipcode: 47408
  • SOLD: no
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Stacy Stein

stacy is a real estate writer, and she would like to real estate, business-related topics, she would like to go out with her friends. she studied business management from California University and she presently lives in California.  

 

 

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