Just like any property investment, buying a vacant lot requires more time and research. Other than location, there are other things you need to check. To help you decide, here’s a guide when choosing a land for sale in your area so you can avoid common real estate mistakes.
TIP #1: Developing the land
First, you need to know what you want or can do about the land you are going to purchase. Find out the necessary adjustments you need to make. What are the areas you should develop? How much would it cost you? Keep in mind that people are going to ask you about your intentions as well. Having a detailed plan will make people more willing to help you find the owner, and make the owner more interested in selling the property.
TIP #2: Finding the owners
When you see a potential vacant lot for either residential or business purposes, try to find the owners as soon as possible. Start inquiring with the owners of the neighbouring properties first. You may also go directly to the municipal office for more information.
TIP #3: Hiring a property manager
Hiring a property manager or an agent is also an advantage. These professionals can help you find what you’re looking for. They can even help you negotiate the asking price and fix the documents needed for the transaction.
TIP #4: Knowing the exact boundaries
Review the records and check the exact boundaries of the land you want to buy. There are cases where vacant lots illegally encroach on the land, erecting fences beyond the property line. Consult a public official to help you settle any disputes with the neighbours.
TIP #5: Sticking to your budget
Set a budget and stick to it. Allocate your funds accordingly. Your budget should include the labour costs, materials, and documentation fees. You should also project weekly or monthly maintenance costs.
Following these tips will help you make the right decision when buying a vacant lot. Do not be an impulsive buyer or investor. Study the location carefully and focus on your goals.