Purchasing vacant land can be an exciting investment opportunity, but it’s crucial to ensure the property meets your needs and expectations before you make any decisions. Whether you plan to build your dream home, start a business, or hold the land as an investment, a thorough assessment is essential. Here’s how to check out vacant land before making a purchase.
Visit the Land in Person
While maps and online listings are helpful, nothing replaces seeing the land in person. Walking the property lets you assess the terrain, access, and surrounding area while spotting potential issues like flood damage, illegal dumping, or encroachment. A site visit also gives you a better feel for the location, helping you make a more informed decision.
A good land agent should be able to catch most issues during a site visit, saving buyers time and money on the rest of the due diligence process. What’s found on-site helps determine which steps are necessary, factoring in the buyer’s goals, experience, budget, and risk tolerance.
Conduct a Property Survey
Before moving forward with the purchase, make sure to obtain a recent property survey as part of your due diligence. Surveys typically provide a detailed map of the land, including boundaries and any easements or encroachments. However, they do not usually include topographic information. If you need to review the property's topography, you can often find this data through the county GIS system or other mapping programs. While a seller may have an existing survey, it’s recommended that the buyer conducts a new one to ensure accuracy and identify any potential issues before finalizing the purchase.
Check Zoning and Land Use Regulations
Understanding local zoning laws and land use regulations is vital. Zoning laws dictate what you can and cannot do with the land, such as residential, commercial, or agricultural use. Contact the local zoning office to verify the land’s zoning designation and ensure it aligns with your intended purpose. This will also inform you of any restrictions, such as building height limits, environmental regulations, or the need for permits.
Assess Access to Utilities and Infrastructure
If you plan to build on the land, check whether essential utilities like water, electricity, gas, and sewage are available. If utilities are not readily available, you’ll need to evaluate the feasibility and cost of connecting to them. Additionally, assess the accessibility of the land, including roads or driveways. If the property is difficult to access, it could lead to costly and time-consuming improvements.
Evaluate the Topography and Soil Quality
The topography of the land can significantly affect its usability and value. Steep slopes may limit construction potential, while flat land is generally easier to build on and maintain. Additionally, access to utilities like sewer and water or suitable soils for a septic system will play a major role in determining the land’s development potential. Conducting a soil test is essential, as soil composition impacts drainage, structural foundations, and even agricultural viability. Understanding these factors upfront can help you make informed decisions about the property’s potential.
Review Property History and Title
Research the property’s history and title to ensure it’s free of legal issues or encumbrances. Look for any unpaid taxes, liens, or disputes that could affect your ownership. If the title is unclear, work with a real estate attorney or title company to resolve any issues before you proceed with the purchase.
Check for Environmental Hazards
Be aware of potential environmental hazards, such as flood zones, wetlands, or contamination. Use FEMA’s flood maps to check whether the land is in a designated floodplain. If you’re unsure about the land’s environmental condition, consider hiring an environmental consultant to conduct a thorough assessment. This step can prevent costly surprises down the road.
Evaluate the Local Market and Future Development Plans
Research the local real estate market and surrounding area to gauge the land’s investment potential. Are property values appreciating? What are the plans for future development in the area? Local government or planning departments can provide insight into zoning changes, new infrastructure projects, or developments that could influence the land’s value.
Conclusion
Buying vacant land is a significant investment, and having the right expertise can make all the difference. At Pickett Sprouse, our commercial real estate professionals are here to guide you through every step, from due diligence to closing. Let us help you find the perfect property and ensure your investment aligns with your goals. Contact us today to get started!