Purchasing land is an exciting opportunity, and the possibilities are endless. When it comes to buying land, there are several important factors that you need to consider before making a purchase. This guide will provide you with all the necessary information to ensure that you make an informed decision when purchasing property.
Why are you buying land?
The first step in buying land is understanding your need. What do you plan on using the land for? Although this first step seems obvious, it will guide the remainder of the land buying process, so it is very important to be clear on your intent behind purchasing a property. Here are several common land use examples:
Agriculture
Leasing to wind energy companies for wind farms
Recreation (Fishing and Hunting)
Leasing to solar energy developers for solar farms
Ranching
Commercial development
Have you researched the land market?
Understanding the current land market is crucial in determining your budget and if you are getting a good deal. Factors such as location, zoning regulations, and surrounding developments can greatly affect the value of land. It is essential to conduct thorough research on the local real estate market and consult with experts or individuals who have recently purchased or sold land in the area. Working with a locally licensed land broker can provide you with these insights as well!
Have you determined your budget?
Once you have a general idea of what similar properties are selling for in your area, you will need to determine your budget and ensure that you have enough capital to purchase the land, including any costs for down payments on loads and property taxes. If you are purchasing rural land with the intention of developing it, you will also need to consider future costs such as bringing electricity to the land.
Other considerations when buying land
Purchasing land is a large investment, so it is important that you conduct due diligence on any property that you are interested in purchasing to avoid uncovering any hidden problems in the future. These considerations are heavily tied to what it is that you're interested in doing with the property that you purchase, but here are a few general issues to investigate:
Access to Utilities
Property Taxes
Zoning and Restrictions
Adjacent Properties
Land History
Topography
Water Features
Mineral Rights
When it comes to purchasing land for a specific purpose, conducting due diligence is crucial. Determining your ideal use case for a property, setting a budget, and researching the land market are all crucial first steps for a successful purchase.
Along with the ability to view and filter through thousands of land listings, LandApp can help prospective property owners conduct due diligence on properties that they are interested in purchasing. LandApp contains lease and sale estimates for every U.S. parcel, along with sale & mortgage history data, topography data, information about soil types, and more.
