Unfortunately, buying land can be an intimidating and overwhelming process. Let’s walk through the steps so when you decide to buy land, you can do so with clarity and confidence.
How Much Land Do You Need?
One of the first questions to ask when scouting out properties is how much land do you need. This is largely a matter of personal preference.
Do you want lots of space to take long walks with your dog without being disturbed by other people? More land opens up many possibilities, such as room for outbuildings, hobby farming and having fun with four-wheelers, dirt bikes or snowmobiles. The downside: higher upfront costs and property taxes.
Do Your Due Diligence Before Buying
Research is your friend when it comes to buying land. The key is to understand what information to research. One tip is to look at the zoning in the area of the land you’re looking to buy. If you’re planning on buying land to later sell, then you should think as the future investor of your property. Is the land for commercial/retail use, residential, industrial?
Road Access
Beautiful land is all well and good, but it will be hard to enjoy if you have to hike through two miles of brush to get there. Evaluate the road access on all lots you scope out.
Is there a year-round, municipally maintained road leading directly to your property? Is there a trail you could use as a road and are willing to keep it clear yourself? If not, now’s the time to decide whether to devote the time and money to have one built, and buy snow removal equipment if you’ll be at the cabin during the winter.
Electrical Grid Access
Once you’ve decided on the size and characteristics of your new home or cabin property, it’s time to consider electricity. Do grid-powered electrical lines come reasonably close? If not, you’ll need to choose between a solar or wind-powered off-grid system, or paying to have the power company install new poles from the nearest point of grid access.
Don’t make the mistake of choosing land based on looks alone. Electricity can be wildly difficult and expensive to achieve for a cabin that’s in the wrong spot.
Drinking Water and Sewage
Do you plan to install a septic system for your home or cabin? If not, you’ll need to use a composting toilet and gray water pit, or hook into the local sewage system. Remote properties don’t have municipal sewage systems, so if you go that route you’ll be restricted to properties closer to towns.
Anticipate Land Taking Several Years to Sell for a Profit
Typically, land will often take years to sell. In a situation where a parcel of land needs to be sold in a timely manner, one can expect to receive about half of the parcel’s full value. Exceptions exist in a hot real estate market that has a shortage of housing inventory. In this situation, land may sell quickly. Also, the value of land can often take 10 to 20 years to see positive appreciation value, as there must be an economic shift in the market to drive that change. Consider these things especially if you’re buying land as an investment.
Consult a Builder Before Choosing a Site
It’s a good idea to bring a builder in before you choose a site. Your builder may have ideas about how a home can be designed to use the space, positioned to take advantage of views and light, and more tactical things like where to place the driveway. In addition, professional builders can point out potential problems, such as costly land prep challenges, that you may not want to take on.
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