Building a house from the ground up allows the individual to customize the home exactly to their style and liking. Since the house is brand new, homeowners can rest assured that there will be some time before they need to start spending money on repairs and maintenance.
Homebuyers in new communities
In less rural areas, buyers can still purchase property to build houses. This is a common occurrence with new master-planned communities, where a developer has purchased a large amount of land (thousands of acres, in some cases!) for prospective homebuyers to choose from a selection of pre-designed homes. The community has a unified look, and a homeowners association manages the care of the neighborhood. Another pro is that these communities typically have amenities like gyms, swimming pools, and restaurants.
While these homebuyers don’t have quite the freedom that someone building a house on their own would, they can still choose a design that suits their lifestyle and purchase add-ons.
Investors
Not everyone who purchases vacant land is looking to build a house for themselves. Land is a great investment, as it appreciates over time. Land is finite, after all, and as a landowner, you have the upper hand in the market.
An investor could purchase the vacant land and build a house or commercial space, or use the land for other ventures.
For example, they may be interested in converting the land into farmland, building a vineyard or orchard, a mobile home park, or another business opportunity.
Whatever the project, it’s important for the land buyer to be aware of the restrictions that may be placed on the property, all of which can be found in the land deed you possess.
Types of vacant land
Not all land is created equal.
Here are just a few types of vacant land, one of which your property is sure to fall into:
- Raw/unimproved land: This land is completely undeveloped and tends to be in rural areas. It may be difficult to access, and buyers are truly starting from scratch.
- Improved land: While this land may lack structures, it does have access to amenities such as water, sewer, electricity, and access to roadways.
- CRP land: Some investors purchase land because it is “environmentally sensitive” and needs some extra care. By taking it out of agricultural use, caring for it and planting native plants to improve the health of the land, the owners are able to get yearly payments through the Conservation Reserve Program.
Things to consider when buying vacant land
There are a few things that one must consider before buying a piece of vacant land. Raw or undeveloped land might be appealing because of its lower price, but it may take longer to sell since buyers will have to bring in the necessary infrastructure. In some cases they may even need to put down roadways to access it.
Environmental tests are also important to carry out before purchasing land. Landowners must understand the history of your property to ensure there aren’t any surprises.
For example, the test will reveal flooding potential or signs of contamination. If issues surfaced in the test, like chemical or gasoline exposure, it could deter potential buyers.
A buyer will also want to know your property boundaries, especially with land that has been owned by the same family for a number of years. The lines may have become blurred over time with neighboring property. A surveyor can study the land and draw up a map of the land’s boundaries.
According to reporting by the U.S. News & World Report, land that already has a survey, geology, and soil report is ideal. Survey information that is available and ready to share will be a plus for interested buyers.
Selling your vacant land or a house with land
Already own land you’d like to sell? Meridian Trust buys both vacant land, as well as houses with land.
Through years of experience buying houses in multiple states, Meridian Trust has the knowledge and skill to purchase properties in a variety of situations.
To find out how much your vacant land and/or property and land is worth, call Meridian Trust at (954) 807-9087.
Note: This guide is for informational purposes only. Meridian Trust does not make any guarantees about the sufficiency of the content in or linked to from this blog post or that it is compliant with current law. The content within this blog post is not a substitute for legal advice or legal services. You should not rely on this information for any purpose without consulting a licensed lawyer in your area.
