Five Things to Consider in a Land Purchase

Posted by admin on November 22, 2012

Purchasing acres of land is a decision that should only be made after careful thought and consideration as it is a sizeable investment. When interested in a piece of land, compile all the information you can to make an informed decision and avoid being surprised by something further down the road.

The following is a list of questions you should ask prior to making an offer on a piece of land:

1. Is the price fair? While it is difficult to calculate the exact value of a piece of land, you should be able to find an appropriate price range. Search for parcels of land that have sold recently that are similar in size and other characteristics to the one that you are interested in purchasing.

2. Are there limits on land use? Do your research. There are often restrictions and limits put in place by the government, such as zoning restrictions and building permit requirements.  Be aware that some neighborhood developers have established CCRs, so be on the lookout for these as well.

3. Are there any land title issues? Hiring a title company will ensure that the acres of land you are purchasing doesn’t have any title issues, such as liens or judgments. At closing, you should include a title insurance policy to protect your interests in the purchase.

4. Are public utility connections easily accessible? Ask if the land is connected to electricity, water and sewer systems. If not, you may need to do installations yourself, which can be costly.

5. Who owns mineral rights? Surface rights and mineral rights have separate ownership; therefore, mineral rights are often owned by a different person. If a person owns these rights, they may be able to set up equipment on another’s property to extract minerals from underground. It’s important to know who owns the mineral rights on the land you’re interested in and consider purchasing them.

Keeping these five basic questions in mind in your property search will help you to make an informed decision before investing in any acres of land. While there are numerous other questions involved in making a land purchase, the ones above will give you a good starting place. Visit AllAcres.com today to browse our listings of available property and discover the ideal land for your every need. Call AllAcres at (855) 227-3741 or contact us online. We would be more than happy to answer any questions or concerns about purchasing or selling acres of land.