What to Consider When Purchasing Land
- Craig Kaiser
- Feb 7
- 3 min read
Purchasing land is an exciting opportunity, and the possibilities are endless. When it comes to buying land, there are several important factors that you need to consider before making a purchase. This guide will provide you with all the necessary information to ensure that you make an informed decision when purchasing property.
What to Consider When Purchasing Land
Before buying land, you must first consider why you are purchasing the property. Be sure to also research the local market and conduct due diligence on the property itself to ensure you're making a sound investment.
1) Why are You Buying Land?
The first step in buying land is understanding your needs. What do you plan on using the land for? Although this first step seems obvious, it will guide the remainder of the land buying process, so it is very important to be clear on your intent behind purchasing a property. Here are several common land use examples:
Agriculture
Leasing to wind energy companies for wind farms
Recreation (Fishing and Hunting)
Leasing to solar energy developers for solar farms
Ranching
Commercial development
Buying land to build a house
2) Have You Researched the Land Market?
Understanding the current land market is crucial in determining your budget and if you are getting a good deal. Factors such as location, zoning regulations, and surrounding developments can greatly affect the value of land. It is essential to conduct thorough research on the local real estate market and consult with experts or individuals who have recently purchased or sold land in the area. Working with a locally licensed land broker can provide you with these insights as well!
3) Have You Determined Your Budget?
Once you have a general idea of what similar properties are selling for in your area, you will need to determine your budget and ensure that you have enough capital to purchase the land, including any costs for down payments on loads and property taxes. If you are buying rural land with the intention of developing it, you will also need to consider future costs such as bringing electricity to the land.
What Not to Do When Buying Land
When purchasing land, avoid overpaying by researching comparable sales and obtaining professional appraisals. Never skip due diligence- make sure to verify zoning, boundaries, and possible environmental concerns. Always inspect the property in person to assess its suitability for your needs and identify any potential issues like wetlands. Additionally, don’t assume you automatically own mineral or logging rights, and be sure to check for any liens or encumbrances on the land.
Purchasing land is a large investment, so it is important that you conduct due diligence on any property that you are interested in purchasing to avoid uncovering any hidden problems in the future. These considerations are heavily tied to what it is that you're interested in doing with the property that you purchase, but here are a few general issues to investigate:
Access to Utilities
Property Taxes
Zoning and Restrictions
Adjacent Properties
Land History
Topography
Water Features
Mineral Rights
Purchasing land is a significant decision that requires thorough research and professional advice. Taking the time to understand zoning, legal issues, physical conditions, and market value will help you make an informed choice and protect your investment. When in doubt, consult real estate agents, attorneys, appraisers, and land use experts to guide you through the process. Ready to start your land search? Platforms like LandApp's marketplace offer free listings and property reports to help you find and evaluate land that fits your goals, making your land-buying journey smoother and smarter.
