3 Tips For Investing In Land

Posted on: 20 August 2021

If you want to build your own home, you need space to build on, which means that you will need to purchase a plot of land to build your dream home on. When it comes to buying land, there are certain things that you need to do and pay attention to to secure the best plot for your needs.

Tip #1: Always Work with a Real Estate Agent

Just because you are not purchasing a building doesn't mean that you should skip out on working with a real estate agent. You will want to work with a real estate agent who has experience with buying and selling land instead of one who has experience with buying and selling houses. When purchasing land, there are different things you are going to want to consider, such as access to utilities, and the right agent will understand all the elements you need to take into consideration with your purchase and will help you work through the process of buying land. They will also be able to suggest different financing options to you.

Tip #2: Think About Home Values

When you are purchasing land that you want to build a home on in the future, you need to consider the values of homes in the area on plots of land that are developed. You are going to want to figure out what the market value is for homes in the area. You will want to look for land where the homes around it are selling in the price range of the type of home you want to purchase. This will make it easier to get financing for building a home later on.

Tip #3: Find Out About Restrictions

When looking at property, you will want to find out what type of restrictions exist in regards to what you can do with the land. All types of covenants or ordinances may be in place regarding building in that particular area that you should know before you purchase a home. Perhaps you can only build so far from the property lines, perhaps some easements restrict where you can build, or perhaps there are rules about what type of siding you can use on the home. Check with the county or a developer familiar with the area to learn about any restrictions that could curtain your building plans. 

You also shouldn't think that you can necessarily get the property rezoned if it isn't zoned right; that can be a tricky process that is often unsuccessful. 

When it comes to purchasing land, work with a real estate agent who has experience with that particular type of sale. When looking at land, find out about restrictions and zoning, and consider the value of homes in the surrounding area, as that will impact your ability to get financing to build on the property in the future. 

For more information, contact a local real estate agency, such as Mary Enck Realty, Inc.

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