Buying land for fun or for an investment is attractive to many people.
Buying land is often considered to be the ultimate investment. Purchasing a piece of raw land and enjoying it for its wilderness value or building upon it and making a profit is appealing to many potential investors. Buying a piece of raw land, however, is not as easy as it seems. Investigating the land fully before purchasing is important so the buyer is not surprised by land restrictions or future plans for the area.
Instructions
1. Develop the criteria and the purpose for buying the land. Those planning to build their own home on a piece of land or use it for recreational purposes look for something vastly different than those who look for an investment or a commercial enterprise. Establish the type of land to purchase, open land, land with trees, lakes or pond.
2. Choose the area in which you would like to purchase land. This would be dependent on the intended use of the land. If buying land to build a vacation cabin or a second home, then look to rural areas, if buying land for commercial or investment purposes, look to areas that provide that kind of zoning.
3. Locate desired land by visiting the area in which you wish to purchase the land and drive around to get a "feel" for the area. This allows you to travel local roads and determine travel times and distance from needed services. Farmers and other investors will often offer pieces of land for sale. Look for "for sale" signs on pieces of land you like.
Other options include checking local newspapers for real estate classified ads, viewing real estate listings online through Multiple Listing Services offerings or visiting local real estate offices.
4. Develop a list of properties to physically investigate. Determine zoning for each piece of property to ensure the land is usable for intended purposes. If planning on developing the property for residential or commercial purposes, ensure the land is zoned for that and determine if utilities are available. Installing power poles and other services can be an expensive endeavor, depending upon the land selected to purchase.
If buying rural land, ascertain if there are municipal water and sewer services available. If no local services exist, a well needs to be drilled and the land needs to be checked for the installation of a septic system. This entails hiring a well driller and a local geologist to test the land for septic system drainage--or "perking."
5. Review the general or master plan. Most cities, towns, villages and counties are required to have master plans available. Review the plan for the selected area and ensure there is nothing in the plan that might affect your purchase. For example, if you want to purchase five acres in the country, ensure there are no plans to put a highway nearby or turn the corn field across the road into a shopping center.
6. Arrange for financing. If you are not paying cash for your land, you will need to arrange for financing. Most landowners will hold the mortgage on a piece of land for a down payment. However, if you need bank financing, you may have to prove that you will be going to the same bank for a construction loan since most banks won't lend on a piece of property that doesn't have anything on it. Look to a smaller, community bank for this type of financing and explain your plans to them. Another option includes taking a second out on existing held properties to finance the purchase of land.
7. Make an offer on the land. Oftentimes sellers are willing to negotiate on the price of the land. If an offer is accepted, a small down will be needed to secure the offer and prove intent of purchase. After it is accepted, provide the needed funds via a money order, guaranteed bank check or through a wire transfer.
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