Vacant land can be a great investment, providing a base to build your dream home or simply accruing value so you can sell it later on. Still, there’s a lot to consider between zoning laws and soil quality. Our guide walks you through the key factors to consider when shopping for vacant land to help you avoid costly surprises and make a smart purchase.
The Importance of Land Surveys
Before finalizing any land purchase, get a comprehensive survey of the property. This will give you vital information about its boundaries, topography, and existing features.
Types of Land Surveys
Several types of land surveys are available, each serving a specific purpose:
- ALTA/NSPS (American Land Title Association and National Society of Professional Surveyors) Land Title Survey: Provides detailed information about property boundaries for title insurance purposes.
- Boundary surveys: Define the exact property lines based on state and local guidelines.
- Floodplain surveys: Used to define the location of floodplains and any related building restrictions.
- Subdivision surveys: Necessary for dividing land into smaller parcels.
- Topographic surveys: Show the land’s elevation and natural or man-made features.
Key Information Provided by Surveys
A thorough land survey will reveal several key details about the land:
- Easements and rights-of-way
- Existing structures or improvements
- Natural features such as streams or wetlands
- Precise property boundaries
- Zoning restrictions
Evaluating the Land’s Potential
When assessing vacant land, look beyond its current state and imagine its future potential. Consider the land’s natural features and how they might impact your plans and possibilities for future development.
Assessing Natural Features
Thoroughly inspect the property in person. Walk the entire parcel to get a sense of its layout and characteristics. Pay attention to these key features:
- Soil quality: Is the soil suitable for building and landscaping?
- Topography: Is the land flat or hilly? Will grading be necessary?
- Vegetation: Are there trees that need to be cleared?
- Water features: Are there streams, ponds, or wetlands?
“I had a hard time envisioning what it would look like at first,” says Paulette Downs, who purchased six acres in West Woodstock, Connecticut. “But now, I would never trade it for a house on a small lot in a suburb.”
Considering Future Development Possibilities
Think about how the land might be used in the future:
- Access: Is there adequate road frontage, or will you need to create an access point?
- Building potential: Is there enough suitable space for your needs?
- Expansion opportunities: Could you add outbuildings or expand later?
- Views and privacy: How might future development in the area affect these?
Navigating Legal and Zoning Restrictions for Vacant Land
Before you buy, make sure you understand the property’s legal and zoning restrictions. These regulations can significantly alter your plans and dictate what you can do with the land.
To research zoning, we recommend the following:
- Visit the local planning commission or zoning office
- Request a copy of the property’s zoning ordinance
- Check if the land is zoned for residential, commercial, or agricultural use
- Inquire about any planned changes to zoning in the area
Easements and Covenants
Easements and covenants can further restrict your use of the land. Easements give others the right to use part of your property, while covenants impose restrictions on how you can use or develop the land. Check with the local assessor’s office to learn about any existing easements or covenants.
Other Questions To Ask the Assessor’s Office
Ask the assessor’s office for tax information for the property. The office can also give you records of flood-zone boundaries and wetland proximity, both of which will influence where you can build.
Utilities and Infrastructure for Vacant Land
Utility and infrastructure access impacts the cost and feasibility of developing vacant land. Research these aspects thoroughly before committing to a purchase.
Water and Sewage Considerations
Determine how water and sewage will be handled on the property. Here are some important factors:
- Public water and sewer: Is the property connected or can it be connected?
- Well water: Will you need to drill a well? Is the water quality good?
- Septic system: Is the soil suitable for a septic tank? Will you need a permit?
Electricity and Internet Access
Investigate the availability and cost of connecting to essential services:
- Electricity: How far is the nearest power line? What’s the cost to connect?
- Internet: Are high-speed options available in the area?
- Phone and cable: Can these services be easily installed?
If you’re far enough off the beaten path that you’ll need to dig a well, install a septic tank, or create new power, phone, and cable hookups, costs can add up quickly.
Analyzing the Financial Implications of Purchasing Land
Make sure you understand the financial implications of buying vacant land. This includes not only the purchase price but also potential development costs and long-term financial considerations.
Land Valuation Methods
Several methods determine the value of vacant land:
- Comparative market analysis: Based on similar properties sold in the area.
- Cost approach: Considers the cost to build an equivalent building.
- Income approach: Estimates value based on potential income generation.
We recommend working with a real estate professional experienced in land sales to get an accurate valuation.
Hidden Costs
Be prepared for additional expenses beyond the purchase price. These can include the following:
- Clearing and grading costs
- Property taxes and insurance
- Soil testing and environmental assessments
- Survey and appraisal fees
- Utility connection fees
Environmental Factors To Weigh When Buying Land
Environmental considerations help determine the suitability and value of vacant land. These factors can affect your ability to develop the property and may impact its long-term sustainability.
Soil Quality and Composition
Soil characteristics are critical for construction and agriculture. Take the following steps:
- Conduct a soil test to determine composition and pH levels
- Check for contamination from previous land uses
- Assess drainage capabilities to prevent future water issues
Flood Zones and Natural Hazards
You should also identify potential environmental risks by doing the following:
- Check FEMA flood maps to determine flood risk
- Research the area’s history of natural disasters
- Consider the impact of climate change on the property’s future
Working With Real Estate Professionals
A real estate agent specializing in land sales can help with many parts of the process, such as the following:
- Identifying suitable properties matching your criteria
- Providing insights on local market conditions and land values
- Assisting with negotiations and paperwork
- Connecting you with other professionals, such as surveyors and attorneys
Questions To Ask Your Agent
When working with a real estate agent, ask the following questions:
- How long have you been specializing in land sales?
- What are the most common challenges buyers face in this area?
- Can you recommend trusted local professionals for surveys and inspections?
- What’s your experience with zoning and land use regulations in this region?
Seasonal Considerations for Land Buyers
The time of year you view the land can significantly impact your understanding of the property. Here are the pros and cons of buying in different seasons.
Spring
Spring offers various advantages for land buyers. The thawed ground allows for easier inspections and soil testing. You’ll also see the land’s greenery and can assess vegetation potential. Spring rains can also reveal accessibility and drainage issues.
Summer
Summer is the best weather for exploring the land thoroughly. Dry ground makes it easier to traverse the property. This season is also ideal for assessing the sun’s position and how it affects different areas of the land. However, overgrown vegetation may obscure some features. Demand for land can also be higher in the summer, leading to increased prices.
Fall
Fall is also a good time to look at land. With the leaves off the trees, you can easily see the property’s contours and how close the neighbors are.
Winter
Winter might seem like a challenging time to buy land, but it has some unique advantages. Snow can highlight elevation changes and water runoff patterns. There’s often less competition from other buyers, which can be beneficial for negotiations. However, keep in mind that frozen ground can make thorough inspections more difficult.