Purchasing Undeveloped Land: QUESTIONS

[Jake616]

I have never purchased "land" with nothing on it. I found some locally for what I feel is a really good price, and am definatley interested in it for future investment or building opportinities.



What do I need to know?
Is there good/bad to this idea?
What questions should I ask?

I went and viewed the area today, and will check it out again tomorrow in better lighting but I figured I would ask up for those who may know more than I can think of to ask.

Thanks!
-jake

[Jake616]

I found this and used this so far but any additional would be great!


10 Questions to Ask When Evaluating Land
1. Has the land been surveyed?
A proper survey is critical to any land purchase. Be sure it includes an exact identity of all lot corners and survey pin locations.

2. Are there protective covenants in place? What are they?
Protective covenants outline what can be done with the land that surrounds the homesite you’re considering. They are important protections to help maintain the quality and value of your property.

3. How is water supplied?
Water supplies vary greatly. Find out if you have to provide your own well or water supply, or if you can tap into a city/county/township supply.

4. Is there physical access to the land?
Be sure the land has good access to it with roads that have adequate clearance and support for contractor vehicles.

5. Is there legal access to the land?
Be sure that the easements allow clear, legal access to the land.

6. Who maintains the roads?
Find out who is responsible for maintaining upkeep of roads that lead to the land. Some roads are maintained by counties, others are maintained by private landowners.

7. Is the land approved for a septic system?
Costs of septic systems can vary depending on soil type. Be sure soil tests have been run in the area to determine the composition of the soil, and find out what type of septic system can be put on the lot you’re considering.

8. Are you able to build on the property?
If you plan to build, request a guarantee of buildability from the seller before buying.

9. Is the title clear?
A clear title confirms that the selling party has clear and legal right to sell it and provides information critical in the purchase decision. Always ask if title insurance is provided before entering into the purchase process.

10. Is power available?
If you require power, ensure it’s there before you buy, or know in advance the cost to provide it


http://www.naterraland.com/10_questions.asp

[ErikLS2]

I have some experience purchasing investment real estate, although never bare land as it provides no income while it sits there (doesn't make it a bad investment). One of the many things I've learned so far is the value of a knowledgeable attorney. My last deal was a seller financed deal and without the attorney I would have gotten the short end of the stick. Believe me it's money well spent and you will get quite an education to use in the future as well.

Also, real estate is usually "cheap" for a reason but lots of people are in trouble right now and banks hold a lot of stuff they want off the books so you never know in these times. Do your due diligence and make sure you know why the price is low. Sometimes a better investment is something on the more expensive end of the spectrum. All things need to be considered.

Good luck and I'll be interested to read about how you make out.

[Racerxtx]

Absolutely the first thing to check is the current zoning/allowable land use to be sure you can build what you want. A zoning change can be expensive should the surrounding owners or even the municipality opposes your proposed use.

Everything Jake616 said is correct. You should be able to go into the municipality's engineering/planning department to view all the zoning and infrastructure maps for the area to see what you've got to work with as far as water, sewer, storm drainage, zoning, etc. Depending on the municipalty, you may even be able to view some of the data online. Just make sure you go in to view the most up to date information, as sometimes the online info can be a little out of date.

[Keith]

The real absolute first thing to check is for the presence of any HazMat or other polution. The second you are in the title chain of ownership on land, you become liable for potential clean-up!

[Jim Nilsen]

Always look into how hard it is to change the zoning for the property. I only had to go to 2 city council meetings while getting a business permit for having the right to sell cars and car parts on the property. It took 30 days for the city to do a survey of the neighbors and get the approval from them. It was the easiest thing to do because the neighbors already liked us and plenty of the other properties were being converted over to businesses with special zoning permits.

It changed the value of the property overnight with just 60 days worth of time and about 10 hrs worth of work.

Goodluck

[Gitter Dun]

looks like your research has covered a lot of important imformation. Keep in mind, if this is a commercially zoned property alot of the time the county or city will require you to build accessable infastructure such as sidewalk, curb, gutter, street lights, signs, fire hydrant, sewer, storm drain, etc. on your dime.

The best land to buy already has all those things mentioned and I dont know what area you live at but there are alot of those properties available right now in California. Many developers have gone under and these properties can be bought up for pennies on the dollar.

Buying a piece of property can be exciting but do your homework and dont settle or rush into one until you've done all your home work.

[JEFFTATE]

Check the zoning !

[lnirenberg]

I'm in the RE development business and the absolute 1st thing I need is more info regarding the intended purpose--investment or for your own use? commercial or residential? what are the uses of the surrounding properties?

[joejaze]

I own investment Real Estate in New York. I'm currently working on the development of a piece of land in NYC for mixed use. The first thing I did was hire an architect to do a zoning analysis. A good architect will be able to tell you exactly what you can and cannot build on the land. If you don't go this route you run the risk of buying the land and having the city planning department deny your project plans. I've heard some horror stories about people losing a ton of money due to poor planning this way. Bottom line, do your due diligence before you purchase. Good luck.