You do not need to be a millionaire land baron to understand the value of buying land. Whether you want to build your dream home or make an investment that you can hold onto for a lifetime, a land purchase can offer you multiple opportunities. If you are considering making a land purchase, here are a few things you should know before you start.
Why is Buying Land in DeLand a Good Investment?
The first thing to understand about buying land is that land is a finite resource. It cannot be made. Therefore, it is in limited supply. Once you purchase land in its natural state, you do not necessarily need to do anything with it, unlike a home or commercial property that requires maintenance or renovations. The land as is will have value, not only today but 10, 20, even 50 years from now.
Don’t Fall Victim to a Land Sale Scam
While buying land is typically a safe investment, buyers need to be wary of land sale scams. As with any investment, you do need to do your research to make sure you are not left with a worthless purchase or a victim of fraud.
The Florida Attorney General’s Office advises to take the following steps before buying land:
- Visit the property in person
- Do not buy land on the phone or online
- Determine all the fees you will be responsible for, such as real estate taxes
- Speak with a local real estate agent to understand the market for the property
- Contact the county planning office to see if there are plans for surrounding land that could impact the value of the land
- If you plan to develop the land, find out who is responsible for the costs to bring utilities, sewers, or roads to the property
- Check public records for any civil actions against the seller, developer, or realtor
- Obtain a copy of the property report if applicable
If you suspect fraud or are a victim of a land sale scam, you should contact the Attorney General’s Office to file a complaint. You can also file a complaint with the Florida Department of Agriculture and Consumer Services.
Understand Land-Use and Zoning Restrictions
Before buying a parcel of vacant land, you need to ensure that it can be used for your intended purpose. Typically, the common classifications are undeveloped, residential, and recreational for vacant land. You will need to check to see whether the lot is buildable and what its zoning is. For example, you would not want to buy land to build a home if it is zoned for commercial use only and vice versa.
Zoning and land use are not the only factors to consider. If the property is part of an HOA or POA, you will need to be aware of their property uses and restrictions, including any fees you will be responsible for.
Address Concerns with Wetlands, Conservation Easements and Mineral Rights
A major concern with buying land in Florida is whether the land is located in wetlands. A water feature like a pond, spring, stream, or lake could increase the value of the land. However, if the property is located on or next to a marsh, swamp, or other wetland, it could be permanently or seasonally saturated with water. This could significantly limit your use of the land.
Conservation concerns could also limit your enjoyment of the land. It is important to research whether the land is near a conservation easement. This is a legally binding agreement that could prevent you from clearing, building, hunting, or farming your parcel of land.
Another concern with buying land is its mineral rights. Mineral and surface rights, such as water and timber rights, are sometimes owned separate from the land. This could, of course, affect your ownership and use of your land. When buying land, it is crucial to research whether its mineral and surface rights have been previously severed and owned by another entity. It is possible to find this out at the County Clerk of Records’ office or search online with the land’s property parcel number.
Due Diligence is Needed When Buying Land
Buying land is a good investment. But you really need to know what you are doing and do your due diligence with all information pertaining to the property. The learning curve of this type of purchase is a little steep and overwhelming for a beginner.
Your best bet is to work with a realtor to not only educate yourself but to make sure you are getting the best deal and not being scammed. Realtors work in the best interest of their clients and put the customers’ needs first in the buying process. If you are interested in buying land in the DeLand area, your first step should be to contact our experienced team at Palmetto Realty.