Are you thinking about buying land in Chicago? Whether you’re looking to invest or build your dream home, understanding the process is important . In this post, we’ll share three essential tips for buying land in Chicago, helping you make informed decisions and avoid common pitfalls.
Tip #1: Make a List of What You Want
Are you buying land in Chicago for investment purposes, or are you planning to build a home or use it recreationally? The intended use will guide your search and help you focus on the right types of properties. Here are a few key factors to consider:
- Price: Set a maximum budget and stick to it. This might seem obvious, but it’s crucial. If you’re planning to build, you don’t want to blow your budget on the land itself, leaving little for construction. Conversely, if you’re buying land as an investment, you need to know the purchase price that allows for a profitable resale. Stick to your budget to ensure you make a smart financial decision.
- Size: How much land do you really need? You might think you want several acres, but larger plots require more maintenance. Consider whether a smaller parcel might be more manageable and suitable for your needs. Alternatively, if you’re planning to build a large home with a big yard, you might need an oversized lot.
- Soil and Trees: Check the type of soil on the property—whether it’s sandy or clay, for instance—as this can affect your building plans and agricultural potential. Trees and existing vegetation can also impact your plans for the property. Many buyers appreciate lots with mature trees, but these can also pose challenges depending on their location and the type of construction you have in mind.
Tip #2: Educate Yourself
There are many variables in land purchases that people often overlook. When buying land in Chicago, it’s more than just about the location; here are some important factors to consider:
- Access: Ensure the property is accessible via a roadway. If it’s not, you’ll need to check for easements that allow you to cross another’s land to reach yours. Proper access is crucial for both convenience and legal purposes.
- Clear Title: Verify that the property has a clear title, free of liens or encumbrances. These can cause significant headaches if not addressed before closing.
- Zoning: Be aware of current zoning laws and any potential changes. Your land might be zoned for residential use today, but what if there’s a planned change in zoning that affects your plans? Make sure you’re fully informed about any zoning issues.
- Comparable Sales: Look at actual sale prices of similar properties, not just listing prices. This will give you a more accurate picture of the land’s value and help you avoid overpaying.
- Covenants: Understand any restrictions on the land. Covenants are rules that might limit what you can do with the property, such as prohibitions against farming, building certain structures, or other uses.
- Water Rights: Ensure you know the water rights for the property. For example, if you bought 2 acres for a small farm, but you’re only allowed to irrigate a small portion of it, you’ll face significant limitations. Water rights can be complex and vary greatly, so it’s important to understand what you’re entitled to.
When considering buying land in Chicago, also think about other potential restrictions such as environmental protections or historical designations that might affect your ability to develop the land. It’s crucial to conduct thorough research and understand all aspects before making a purchase.
Tip #3: Work with a Professional
The process of buying land in Chicago is different from buying a home. Realtors might not always prioritize land deals due to lower commissions, but working with land specialists like Global Abundance LLC can make a significant difference. Here’s how a specialist can assist you:
- Expert Guidance: Land professionals have in-depth knowledge of the market and can provide insights that general realtors might miss. They can help you identify the best locations for your needs and guide you through the complexities of the purchase process.
- Negotiation Skills: Experienced land specialists are skilled negotiators who can help you get the best deal. They understand the factors that influence land prices and can advise you on how to approach negotiations to achieve a favorable outcome.
- Due Diligence: A land professional will conduct thorough due diligence to ensure there are no surprises after you purchase the property. This includes checking for any legal issues, zoning changes, environmental concerns, and other potential problems.
- Network Connections: Land specialists often have extensive networks of contacts, including surveyors, engineers, and other professionals who can assist with various aspects of the land purchase and development process. These connections can be invaluable in ensuring a smooth and successful transaction.
When buying land in Chicago, a professional can also help you navigate the local regulations and requirements, which can vary significantly from one area to another. They can provide valuable advice on the best ways to develop your property and maximize its value.
For more complex land projects, such as Land Development Financing, speak to one of our funding partners. Contact Global Abundance LLC today to start your land-buying journey with confidence.
In conclusion, buying land in Chicago can be a fantastic investment or the perfect foundation for your dream home, but it requires careful planning and consideration. By following these tips and working with a team of knowledgeable professionals, you can ensure that you make a smart and informed decision. Whether you’re a first-time land buyer or an experienced investor, Global Abundance LLC is here to help you every step of the way. Reach out to us today to learn more about how we can assist you in finding the perfect piece of land.
Global Abundance LLC can help you whether you are looking to buy or sell land in the Chicagoland area. Fill out this form, or give our office a call now to find out how we can help you! (800) 953-2124