Finding cheap land would not be the easiest thing that someone can do. You will therefore come across the need to ask numerous questions to buy cheap land that delivers value. This is where you need to need to make sure that you are purchasing right type of land that is available for sale. Here is a list of 10 questions that you must ask when you are trying to buy cheap land. The answers you get to these 10 questions will help you to understand whether you are going forward with the decision to buy land or not.
Table of Contents
What utilities are available for use?
When it comes to cheap rural land, you will not usually be able to find too many utilizes. For example, you will come across plots of land that are not even offering the basic facilities such as water and electricity. If you purchase such a piece of land, there is a possibility for you to run into trouble. This is why you should understand what utilities are available to you along with the land that you are going to buy.
You must check and confirm that all the utilities that you want to use are available in the land. The land owner would sometimes tell you that it is possible for you to get them at a later stage. However, you will run into numerous struggles when you are trying to get them. In fact, you will have to deal with lots of expenses as well. To make sure that you never deal with any such problems, you should understand what utilities are available for purchase in the land that you are going to buy. Then you can make the right decision to buy the land and use that for your purpose.
Can you construct something on the land?
Unless you are going to use the rural land for recreational purposes, you should confirm whether there is possibility for you to go ahead with constructing something on the land. In other words, you should check and see whether the land is buildable or not.
You will be able to do a soil test and understand whether the land is buildable or not. However, you need to make sure that you are getting the soil test done with the help of an expert. Then you will be provided with access to all the useful information. While keeping those details in mind, you can go ahead with investing your money on the land. Then you can proceed with constructing something on the land according to the preferences that you have.
Is it possible to easily access the land?
You must also check and confirm whether the land that you are going to buy is something that you can easily access or not. Most of the cheap land that you buy in the rural areas would not have any roadway facilities. When you are going to use the land without any access, you will have to deal with multiple challenges. To make sure that you never have to deal with any such major challenges, you need to check and confirm how easy it is for you to access the land. Based on that, you will be able to take a decision to purchase the land and continue to use that for you requirement as well. ‘
Access should be clearly marked in the deed. Therefore, you should carefully check everything and make sure that the documentation is correct. Apart from checking the access roads that are available to the road, you may think about taking a look at the highways that are located in the neighborhood as well. That’s because such highways will provide you with convenient access to the land when you are trying to access it from any other part of the country.
What property lines are going around the property?
Before you purchase property, you need to understand what property lines are going around it as well. This is something that you will be able to do by purchasing a survey of the property. It would provide you with information to all the property lines that are taking place around the property. You should also understand that most of the banks would require you to submit a survey, so that you will be able to get financial assistance for purchasing the land. Before you do that, you will need to understand the property lines before you make a commitment to buy it.
You will also need to have a good understanding on what is happening in all the properties that are located around the land that you are going to buy as well. For example, you should check and see whether you are trying to become the neighbor of a farmer or an industrial factory. You should be in a position to buy the land and use that without encountering any challenges. This background study you do will be able to help you with it.
What are the zoning restrictions with related to the property?
You must also check and understand the zoning restrictions that are associated with your property as well. it is possible for a land to be categorized under different zoning categories. They include agricultural, commercial, and residential. You will need to understand that you buy a land that is zoned according to the needs that you have.
For example, assume that you purchase a land that is zoned under agricultural land. Then you will only be able to use that for agricultural purposes. You cannot build a factory in the land. On the other hand, it will not be possible for you to have a house in the agricultural zoned land as well. What you will be able to have is a farmhouse or a barn.
Changing the zoning regulations is a complex and expensive process. Instead of going through that process, you are encouraged to buy land that is classified under correct zoning. Then you will be able to continue to experience the benefits that come to you with a land that is properly zoned.
In the meantime, you should also understand that some of the properties are associated with specific regulations that are implemented by the owner. You should have a strong understanding about these before you buy the land as well.
How does the land look like?
Before making a commitment to buy land, you should go there and inspect it in person. This is where you will need to understand how your land would look in person. You need to make sure that you are satisfied with the decision of purchasing it. Then you will not have to deal with any major challenges as you buy your land as well.
As you inspect the land, it is important for you to pay your attention multiple factors as well. for example, you can check when wood was panted. On the other hand, you can deep dive and learn more about the history of the property. You should carefully inspect the areas that are eroded or steep. They would serve as warning sights. Make sure that you do the right decision when purchasing your land by taking your time on the inspections. This will help you to refrain from spending your money unnecessarily on the land.
What extra expenses do I have to bear when I want to prepare the land for living?
While you are trying to prepare the land for living, you will have to deal with numerous unexpected expenses. You should understand what those expenses are. Then you will be able to refrain from those expenses. However, it would practically not be possible for you to get rid of all the expenses. However, you will at least be able to minimize the additional expenses that you will have to bear out of your pocket when you are trying to get the land to use for your needs.
For example, you will need to understand the need for installing a septic system, drilling a well or running a power line. All these are expenses, which you will be able to reduce. If you assume that you will be able to buy a land that offers all these facilities, you can go for it. This will help you with saving your precious time and money as you purchase property that is available for sale.
How much do I have to pay as the tax for this land annually?
After purchasing the land, you will have to continue making tax payments for it on a regular basis as well. This is where you will need to understand how much money you will have to spend out of your pocket as the tax payments on the land. The tax percentage would heavily depend on the way how your land is zoned. For example, tax associated with agriculturally zoned land is relatively low.
You should understand the exact amount of taxes that you will have to pay for the taxes. If you make a mistake in here, you might even end up with spending more money on taxes within a couple of years before what you spent to buy the land. That would not be a profitable investment. Hence, you should carefully check and see how much of money you will be having to spend in the form of taxes.
What financing options are available for the land?
If you are not in a position to spend money out of your pocket for the process of purchasing land, you should check and see what financing options are available for buying the land as well. There are numerous financing options available for you to consider when you are trying to buy a land. However, not all financing options would be available for you. Some of the lands would not be approved by the lenders for financing at all. Even if a loan is approved, you will have to spend a lot of money unnecessarily on the interest rates. Therefore, you should carefully evaluate all the financing options that are available for you to consider as you buy your land. Then you will be able to pick the best financing option available for your land and proceed with purchasing it. This will help you to go ahead with the transaction smoothly, so that you will not have to spend too much of money unnecessarily.
Is the timber in land associated with any value?
You must also check and see whether tinder that you can find on the land is associated with any value as well. Based on that, you can understand whether the overall amount that you are spending to buy the land is worth it or not. That’s because you will be able to cut timber at a later stage and earn a decent amount of money.
It is also important to understand that the minimum size for commercial timber to be at least 25 acres. Likewise, you should understand all other factors that would contribute towards the amount of money that you can earn from timber that is available in the land. Then you will be able to go for the right decision and end up with saving some money. If you have any doubts, you will be able to get in touch with the state environmental agency. They will be able to provide all the support to you with finding the answers to questions that you have in your mind.
Final words
As you are trying to buy cheap land, there is a high possibility for you to run into numerous unexpected surprises. To make sure that you don’t end up with such disappointing situations, you should ask these questions. According to the answers that you are getting to the questions, you will be able to figure out whether you are going for the best deal or not.
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