Buying land is never an easy thing to do. You will need to pay your attention to numerous facts, including the risks associated with it. However, most of the people don’t seem to have a solid understanding about all the risks that are linked with the purchase of land. As a result, we often see them making mistakes as they try to buy land. This is the main reason on why we thought of sharing some of the prominent risks associated with buying land. You can keep these risks in your mind and proceed to get the best out of your land buying process.
- It may not in the correct zone
Zoning is one of the most important things you should be mindful about as you buy land. If your land is not in the correct zone, you will have to deal with numerous negative consequences. Hence, it is a must to check and confirm the fact that your land is located within the correct zone at all times.
There are numerous methods available for you to understand whether your land is located in the correct zone or not. For example, you will be able to ask about it from the property owner. If the property owner is clueless, you will be able to get in touch with the local planning and zoning department. You can usually get an immediate answer by getting in touch with them.
Before you approach, it is worthy to have a basic understanding about the zoning classification as well. Some of the most popular zoning classifications include agricultural, industrial, commercial, and residential. With this understanding, you will be able to buy a land that matches with the requirements you have. For example, if you have a requirement to buy the land and build a house, you should be purchasing something that is classified as residential.
It might be possible for you to change zoning in the property, but it involves too much of work. Hence, it would be a good idea to buy a piece of land that is classified under correct zoning. Then you will never have to deal with any major problems. This is a proven method available to overcome the risk of buying land as well.
- Understand the topography
The next important thing you should understand is the topography of the property. You will be able to find many different types of land. Some of them have unpredictable mountains, cliffs, elevations, ravines, and valleys. This can create a massive impact on the overall ability that you have to build something on the property.
For example, if the land you buy has a 90-degree cliff, you will not be able to use that and build a house. This is why you should carefully understand the topography and terrain of the property that you are going to buy. This will help you to get a better understanding on whether you will be able to use the land for your needs or not.
One of the proven methods available for you to understand the topography of land would be to use the internet. There are numerous tools that you can use to get the details that you require. Earth Point and Google Earth are some of the best options available out there to consider. You can zoom in and tilt the earth, so that you can clearly see all the valleys and hills that are located in the area. Based on this understanding, you should proceed to the next step of purchasing property.
- Understand property taxes
You must also have a complete understanding about property taxes before you go ahead with your investment. The property tax that you have to pay would vary from one location to another. No matter what, you should be aware about the property tax that you have to pay for the land that you own. Then you will be able to overcome surprises that you may face in the future.
In some of the areas, property taxes are ridiculously high. Therefore, you should be mindful about such absurd taxes before you run into any surprises. You don’t want to buy a piece of land for just $10,000 and keep on paying taxes for $2,000 per year on that. To overcome encountering such problems, you should have a clear picture in mind about property taxes and try your best to refrain from struggling situations that you may face with it.
- Check if all public utilities are available
It is important for you to check and see whether all the public utilities that you want to buy are available in the land as well. Some of the most prominent public utilities that must be present in the land include gas, electricity, sewer, water, and phone. You need to make sure that all these are available in the land you buy. If they are not available in the land for any reason, you will run into troubles as you buy property.
When there are no public utilities available, nobody would be interested in purchasing the property that you are going to sell in the future. That’s because nobody wants to buy a house where they is no clean water available, even to flush the toilet. You will also need to make sure that you pay the right attention to the marketability, usability, and the value of the property. Then you will never be risking anything as you continue to purchase the property and use it. You can simply keep the peace of mind and continue to enjoy all the benefits that come on your way with the property investment.
- Are there any building setbacks?
Checking for building setbacks will be another proven method available for you to confirm whether you will run into any troubles after purchasing your property or not. As you continue to buy the land, you will try to understand the overall dimensions of it. This is where you should get in touch with the local planning department and get more details about the building setbacks. Even though building setbacks are quite common, you need to make sure that they are not in a position to lead you to any risks in the future.
Upon getting to know about the building setbacks, you will be able to take them into consideration. This is where you can figure out how building setbacks can create a negative impact on your property in the future. This understanding will help you to make the right choice as you purchase property. If the property cannot be used to build a land, you will not be getting worthy returns out of it. On the other hand, it can also make the land to lose its value. This will lead you to a risk with your investment.
- Check if there are any usage restrictions
You must also check and confirm whether there are any usage restrictions. In most of the bare land that you will be able to purchase in the United States, you can see usage restrictions. You need to understand what those usage restrictions are and how they will be able to affect you.
There is a plan in every municipality of the country. Some of the municipalities would have a vague plan, but it will still be a plan. Therefore, you need get in touch with them to make sure that you understand how different sections of land can be used. This is where you can get to know about all the limitations that are associated with property.
For example, if the property belongs to Home Owner’s Association, you need to understand that there is a high possibility for it to be affected with more restrictions than any other property. Therefore, you need to understand how to take control over those restrictions and overcome the problems that you will have to face.
It is fine for usage restrictions to be present in the land that you are going to buy. However, you need to make sure that they make sense up to a certain extent. Then you will be able to refrain from creating any new conflicts as you go ahead and purchase land.
- Is the land located in a flood zone?
You must carefully check and see whether the land is located in a flood zone or not. Some of the bare land are vacant because they are located in flood zones. You should refrain from spending your money to buy such a land. You will need to pay attention to this before you go ahead with buying your land. If the land is located in a flood zone, you will have to spend a considerable amount of money on insurance as well.
If the land is not located in a flood zone, but if it is near water, you can think about purchasing it. That’s because such land is quite valuable when compared to others. However, you shouldn’t ignore the potential dangers that you may run into, because the land is located in close proximity to water. This is where you should get to know about the ramifications associated with the location and proceed with purchasing land accordingly.
- Does the land have percolate soil?
You will need to check and see whether the land that you are going to buy is having percolate soil or not. This is where you need to understand whether the land is having access to a sewer system located in the neighborhood.
Some people tend to purchase land without conducting a soil test. This will be one of the biggest mistakes that you can do as you purchase your land. Hence, you need to make sure that you never commit to the mistake of purchasing land without conducting a soil test.
One of the best methods available to understand whether your land is percolate or not is to get a Perk Test done. There are numerous professional service providers who can assist you with getting the perc test done. All you have to do is to get in touch with one of the service providers and request for assistance. For the request you make, you will be provided with all the support to get a perc test done. This will help you to understand the nature of soil available in your property and overcome the problems that you will have to face.
- Check if the property has an accessible road
To make sure that you never run into any problems, you will also need to check and confirm whether the property is having an accessible road as well. If there aren’t any accessible roads, you will not be able to access the property. On the other hand, no person would be interested in purchasing it because there is no way to access the property. Hence, you should carefully check and see whether the land you are going to buy is a landlocked property or not.
- Understand the previous use of the property
Last but not least, you should get to know about the way how the property has been used previously. For example, if you need to check and confirm whether it was commercially zoned property or a residentially zoned property. This is where you need to check and confirm that you are not taking the risk of inheriting any environmental contamination along with the property as well.
You can order a phase I environmental report and learn more about the inheritance of the property. Based on the report, you can make a decision on whether you are planning to go ahead or not.
Keep these tips in mind and ensure that you don’t risk anything by purchasing a property. This will help you to go for the best investment available out there to consider without having to worry too much about anything as well.