You are considering the purchase of a piece of vacant land, but where do you start? Most Realtors® don’t know much about it. How do you even know that IF you do get the land that you will actually be able to do what you want with it? The fact is that it can be very scary. After all, who wants to buy a piece of land and not be able to do anything with it AND be required to pay the taxes so it isn’t taken away from you? This article will provide a brief checklist of “Must-Do’s” when considering buying vacant land. The landscape of buying vacant land can vary significantly from state to state, so for the purposes of this article we are using Florida as our state of choice.

Below is a checklist of 10 things that you must “check-off” your list when buying vacant land:

1. Determine the Zoning and potential use restrictions. Find out what the local municipalities will allow. These ordinances may not permit something that the neighbors are doing, so do not assume that you can do it legally. If you want to build a home, check with the city or county government to ensure you will be able to build. If you are considering a gun range or a business of any sort, do not assume that you can do whatever you want just because you own the land. There may be a reason that someone else is not already doing what you want to do. Homeowner’s Associations and Deed Restrictions must also be considered and can sometimes be present in rural areas, so do not just assume that they are not present.
2. Determine HOW the property is accessed and IF there is legal access to the property. First, let’s address the “how” question. Is there a public easement, whereas anyone can legally access the road or is it a prescriptive easement, whereas just the owner may have legal access? Be careful – prescriptive easements can be problematic and could potentially require the guidance of an attorney. Are the roads paved or dirt and are they publicly maintained? Vacant land can be sold without legal access, you may just need a helicopter to access it or traverse across some else’s land, but it will likely negatively impact the value of your land.
3. Determine if the vacant land is in a flood plain. Public records will show you this, although it may require some digging. If you are building a home, consider what flood zone the home would be built in. If it not built in flood zone “X”, your lender may require flood insurance. At the time of this article, insurance companies will often tolerate other flood zones as long as the home itself is built in flood zone “X”. Flood zones do not necessarily mean that the property will flood, but the maps determined by satellites suggest that they will. Take note of the vegetation and consider what grows in low areas and what does not. For instance, an abundance of mature Live Oak Trees suggests that the property does not flood even though it may be in a flood zone. Low-lying vacant land may require additional expenses such as fill dirt and an elevation certificate.
4. Know your neighbors. A quick overhead view from Google Maps will show you what is (or was) on neighboring properties. Doing a little digging through public records will tell you who they are as well. A neighbor that owns a waste management company or an auto salvage facility may not make the best neighbors for your small piece of vacant land. Sometimes a handshake and a friendly conversation with a neighbor can go a long way towards a successful purchase.
5. Get a survey. Public records may show an approximation of where your property lines may be, but a survey is a MUST here. A survey not only ensures that you know exactly where your property boundaries are, but it also helps protect against title issues that may arise relating to boundary issues in the past. It should also show any easements that encroach on your vacant land. A survey is not a requirement for a cash purchase, but I suggest that only a fool would skip this step when it comes to buying vacant land. If you are financing, a lender will likely require a survey. Consult with numerous surveyors as the cost can vary widely.
6. Know the topography of the vacant land. Topographic maps are often a matter of public record and can be utilized at little or no cost. If you are looking to farm your land, steep cliffs, creeks or even modest hills can present challenges. Of course, these features can be helpful if you are using the land for other purposes such as hiking, for ATV use, or hunting and can sometimes help these buyers save some dough!
7. Utilities. Consider the expense of getting utilities such as water or electric to your vacant land. It may be a quick and easy thing to have done, but it could also cost you thousands of dollars, altering the true cost of your investment. Also consider whether internet is available. Satellite is often an option, but it can get pricey and quality or speed could be a potential issue.
8. Don’t forget the soil and trees. Consider the soil type and timber value. Some areas have soils that may be great for farming, while others may have poor drainage or low nutritive content. If you are buying vacant land to farm, you may consider having your soil tested by a professional. Harvestable trees can significantly alter the true value of vacant land, so check with a professional to find out if there is value today or even years down the road.
9. Get a title search. Do not purchase land without spending the money for a title search, period. This ensures that you are protected against others making lawful or unlawful claims against an asset that you paid for. These are often issues that you would never know about, so a few hundred bucks is usually money well spent.
10. Consult a professional. Buying vacant land is not like buying a pair of shoes. There are many factors to consider and professionals handle these types of things daily. Their knowledge could help you avoid problems that may not be visible for years to come. Using a REALTOR® that is familiar with buying vacant land usually costs you nothing, but their guidance could be priceless and help you sleep better at night.

Published on March 22. 2022 / no comments.