With proper guidance on your investments, purchasing the right property, at the right price and time, is a easier undertaking overall than a typical commercial or residential investment. However, it requires dedication in order to avoid making a mistake from which you ultimately suffer a financial loss. If you’re considering venturing into the arena of land investing, you will want to watch for these 5 warning signs of bad land deals.
Feeling Rushed
If someone makes you feel pressured to rush the process of investing in land or is pushing you to sign quickly, this is a key sign of a bad land deal. This could be a very large investment so you’ll want to take your time to ensure that there’s not an unforeseen problem with the land, such as an encroachment or pending zoning changes which could prevent you from doing what you want with the property. The last thing you need is to be dealing with impending legal boundary, disputes, and restrictions.
Zoning Classification
If the seller focuses on building your expectations and seems to want you to avoid learning about the zoning of the property, this is yet another sign of a bad land deal. Any investment carries a high consequence both financially and timewise. Value in land investments comes through the ability to use the land to the highest and best purpose for the specific area, regardless of the current use. In order to properly value the land, you need to know the local market intimately while being aware of any legal issues that control the use of the land to its fullest extent. A quick call to the county planning and zoning department can help to guide you in the intended use of the land.
Viewing
You’ll want to be aware of problems that could prevent your plans from coming to fruition, such as low lying floodplains or other unbuildable or uninhabitable lands. These are all characteristics of bad land deals. You’ll want to utilize the benefits awarded to today’s real estate investor by viewing the topography map online, quickly showing you elevation levels and any signs of concern in the area in which the property is located. Be sure you’ve done your research on the local, state, and federal laws for the property you are interested in purchasing. Some landowners have been prevented from developing their property due to the presence of protected species of either animals or plants.
Taxes and Assessments
As you already know, taxes are one of those unavoidable things in life. You will want to do your due diligence for properties that carry unusually high property taxes or have upcoming assessments for improvements causing owners to unload those properties. This too points to a bad land deal.
Utilities
The lack of access to common public utilities can be a sign of a bad land deal. While you’re busy dreaming of just where you’ll place your new home on the property, you need to confirm that your electric, water, sewer, and any other services you envision are available. This would also include cable television, phone service, or internet providers. Problems like these could prevent you from ever building or even using the property.
We have covered just a few of the possible complications that can come up in the purchase of vacant land. Want to avoid bad land deals in your target market? Let our experience guide you and make it a simple and straightforward process. Let our experience guide you and make it a simple and straightforward process! Join our Buyer’s List here or call us at (800) 953-2124 today!