Many people choose to purchase land as an investment or for a future dream home. We work with clients to find the right lot, at the right price, for their needs.
A survey is an important first step in buying any vacant land. This will help you determine the exact property boundaries of the lot.
1. Location
Buying new lots as an investment can be a great option for people looking to build homes in the future. Since land doesn’t require a mortgage and is not subject to annual property taxes, it can be a cost-effective alternative to purchasing traditional real estate. However, it’s important to understand that managing a lot of land can be time-consuming. It’s also a good idea to invest in raw land that’s located close to where you live because this will make it easier to manage.
If you’re interested in investing in raw land, look for listings on websites that specialize in selling vacant properties. These sites can help you find land that meets your price range and acreage requirements. They may also offer other search filters, like location and zoning information.
2. Acreage
When shopping for a home, you’ll likely want to consider the size of the lot and acreage. A larger lot gives you more space to grow a garden, raise livestock, or entertain friends and family. It also gives you more privacy because it is farther from neighbors’ homes.
One acre is 43,560 square feet, or about the size of a football field. It was originally defined as the amount of land that a yoke of oxen could plow in a day.
The cost of land per acre varies. The best way to find out how much an acre of land costs in your area is to speak with a local real estate agent who specializes in land parcels for sale. They will be able to provide the most current information based on recent sales in the region.
4. Utilities
There’s no one-size-fits-all answer to this question, as utility availability can vary greatly depending on the location of the lot. For instance, city lots are more likely to have municipal water and sewer than rural vacant land.
Bringing utilities to a lot can be an expensive proposition, so it’s important that you consider your budget and timeline when assessing whether a parcel with utilities is right for you. Fortunately, there are resources available to help you find out if a lot has access to public utilities.
For example, you can check out the DOT database and MapRight to see if the property has easements that permit public utility services. Similarly, you can use online tools to learn more about back taxes and tax liens that may be owed on a lot.
5. Taxes
There are a few costs that you, as a buyer of land, will likely incur. These include a survey and appraisal. These fees are usually covered by the buyer. You also might have to pay for a percolation test, which is done on raw land to determine whether it can support the installation of a septic system.
Sellers of land must also pay closing fees, which include a title search and insurance. If the property has back taxes or liens, these can affect its value. Fortunately, these fees can be offset by an election to add carrying expenses to your cost basis, or “capitalize” them in tax jargon. This can significantly reduce your capital gains tax on the sale of your property. This is particularly important for investors who require financing.
