Benefits to Buying Land

Land costs drop in the country. The further away from the city, the cheaper the acreage. Many people buy land because they want to build a custom home to their own specifications. They also want cleaner air and more space.  Others want to try farming or raising horses.  Whatever your motivation, be sure the land costs leave room for all the improvement and equipment you will need.

Drawbacks to Buying Land

Transporting building materials and paying for delivery will likely cost more over building in the city. Although modern conveniences are available, they aren't always reliable in the middle of nowhere, which is why many owners in the country use generators as a back up when utilities fail. Going into town for groceries and other shopping needs generally requires planning and long trips.  Taking your animals to the vet can be an all-day excursion.

Timing is Important in Buying Land

Resale value is often softer in the country than the city. That's because the pool of potential buyers is smaller. If demand is low and supply is high, home prices will be more negotiable. Try to tme the market - be ready to buy that parcel of land when it first becomes available.

Factors to Consider Before Buying Land

Zoning Requirements

Check with local authorities (city, county and state) to determine zoning ordinances and whether you can build the type of home or start the type of livestock or agricultural business you want before committing to buying the land. Ask about future zoning, whether there are plans to put in shopping centers or airports, or to change nearby land uses that could also devalue your land.

Smells and Sounds

If you decide to trade exhaust fumes from the city for the lovely odors of agriculture and livestock, do your homework. Make sure you investigate both smells and sounds for any frm animal you consider raising. 

Natural Hazards

Obtain a natural hazard disclosure and look for soil problems. A disclosure will tell you if the land is a protected habitat, which could prohibit certain types of uses.

Easements

If access to your land is provided by driving across an adjoining parcel, you should obtain an easement and make sure it is recorded. Find out who maintains the roads and what your prorata share might cost for upkeep. What rights do neighbors have to cross your land? Are the boundaries clearly marked? Obtain title insurance, which will disclose easements and restrictive covenants or conditions.  In our area of the west, be sure and require a survey of the land.

Utilities

Water is all-important in Arizona, but more plentiful in Virginia. Sometimes water rights don't "run with the land," which would mean you could not dig a well. Find out the depth of your water table and determine the difficulty of digging. Is the ground mostly rock? It can be costly to bring electricity, telephone or cable services to the property if they are not already established nearby. Will you need to install a propane tank? Consider a generator for back-up during power outages. If you cannot hook up to a sewer, what will it cost to install a septic system?

Appraisal

It's common to pay cash for land. If you're not planning to finance the land purchase through a conventional lender, which will require a lender appraisal, then obtain your own appraisal to determine an appropriate price before making an offer. Comparable sales are sometimes difficult to find when buying land.

Use a Realtor

The importance of using a Buyer's Agent for your land purchase cannot be underestimated.  His or her services are free to you, and their knowledge will be invaluable.