If you want to start a business or diversify your portfolio, buying land is an excellent investment. Land is a tangible asset that appreciates over time. It is also a gateway to numerous profitable business ventures including farming, hunting land, and retail development. However, when it comes to buying land, finding the right property to purchase is the key to maximizing your return.
At Palmetto Reality, we’re a team of licensed and experienced land brokers. We’re highly skilled at evaluating land, especially in Central Florida, and we can help you too. We’ve pulled together a quick list of some of the best tips to think about when identifying good land to purchase:
1. Consider Your Intended Use
Before you can decide if the land is suitable for purchase, you need to know how you want to use it. Land that is good for farming and raising animals might not be great for new construction. If you plan to use the land for hunting, then maybe you don’t need a cleared property. Think about how you’ll use the land in the short term and long term before you start the shopping process.
2. Identify Your Location
Once you know how you’ll use the land, you’ll need to decide on the right location. Identifying a target area will help you narrow down your search. Land in up-and-coming communities is more likely to appreciate faster; however, land in rural areas is likely more versatile. The cost of land varies significantly by location, so you’ll want to keep this in mind as well.
When deciding on a location, you should also think about accessibility. Is the property landlocked? Is it able to be accessed by road? Is utility service available in the area? All of these things are important.
3. Check The Bundle Of Rights
Purchasing a piece of land doesn’t mean you own what is below the ground or even in the sky. Rights to minerals, water, timber, and sometimes even air can be removed from the actual property and sold separately. When buying land, work with your land broker or real estate agent to understand the full bundle of rights and everything that is included in the property sale.
4. Think About Construction Feasibility
If you plan to develop a new home or business on the land, you’ll need to make sure the property is suitable for construction. Understanding the stability of the land is difficult with just a visual inspection, so you may want to conduct a feasibility study (or ask the seller to do one prior to closing).
The study, which can be conducted by a development firm or an engineer, will tell you if your proposed construction project is viable. Making an offer contingent on a feasibility study is a good way to protect yourself and your future investment.
5. Understand Restrictions
Zoning restrictions are local laws that define or restrict how land can be used in a particular jurisdiction. For example, if the land isn’t zoned for residential construction, you won’t be able to build a home on it. You don’t want to purchase land if it isn’t zoned for your intended use. Your land broker can help you look into any zoning restrictions before making an offer.
You should also check the deed for building restrictions as well. Minimum or maximum dwelling space, restrictions against outbuildings, and material limitations are sometimes listed on the official property deed at the county clerk’s office. Make sure to do your research!
6. Make Sure To Spend Time On The Property
Before buying land, you should make every effort to familiarize yourself with the property. Always make sure to visit the property in person and take the time to walk around and explore. Take note of the neighboring properties and amenities. A property’s negative traits are generally not advertised on a listing, so seeing it with your own eyes is the best way to determine if it’s a good fit. You do not want to depend on a virtual tour when deciding if the land is right for you.
Buying land is a lot different than buying a house, but choosing the right property is essential to unlocking value and realizing a strong ROI. If you’re in the market for land in Central Florida, trust Palmetto Realty to guide you through the process. We’ve helped clients acquire land for all different types of uses, and we’re experts at selecting properties, negotiating deals, and closing transactions. If you want a trustworthy partner that offers friendly service, responsiveness, attention, and reliability, contact Palmetto Realty today.