There is an abundance of land available to buy in Central Florida, but how do you know if a property is right for you? While you can visit a property in-person, it might be difficult to assess its true quality — especially if it’s many acres.
The truth is the process of buying land is complicated. While it’s a valuable investment, there are risks. Research is the key to mitigating risk, but you have to know what questions to ask. If you’re thinking about making an investment in Central Florida land, make sure to ask these questions along the way:
What Can I Do With The Land?
It’s an important question that will not only help you choose the right property, but it will also help you learn about any zoning restrictions. For example, if you plan to build a home, then the property must be zoned for residential construction. If a listing isn’t clear on zoning restrictions, reach out to the local planning and zoning department before you make an offer. You don’t want to buy land only to find out that you can’t use it for your intended purpose.
What Utilities Are Available?
Not all land has utility access, so assessing what is available and what utilities are feasible to add is an important consideration. Does the land have access to public water or a sewer system? If not, then you may need to consider alternatives such as a well and a septic tank. Natural gas, electricity, cable, and internet are also important considerations. If the property is large, you might want to ensure road accessibility as well.
Are There Any Environmental Hazards?
It’s definitely a good idea to understand the environmental condition of your land before making a purchase. Make sure your the property isn’t sitting on-top of an old mine or susceptible to toxic run-off. You can hire third party contractors to inspect the property for environmental hazards before you buy it.
What Is The Quality Of The Soil?
A soil analysis can tell you a lot about the property. Is the soil strong enough to support construction? Is there a high water table? If you’re planning to any residential or commercial construction, a soil analysis and feasibility study should be part of the closing process.
Where Are The Property Boundaries?
It’s a good idea to know where your property begins and ends; however, property boundaries aren’t always clearly marked. Ask the seller if they’ve done a recent survey, and if not, you may want to consider doing one yourself.
Why Is The Land For Sale?
People sell land for all kinds of reasons. In many cases, it’s because they don’t want to care for the land anymore or they want to cash-in on their asset. However, some sellers have specific reasons that you may want to be aware of. Environmental issues or problems with neighbors are things you’ll want to know ahead of time. Be sure to ask the seller’s agent for some background information.
Are There Any Water Features?
The presence of any lakes, ponds, rivers, or streams can positively or negatively impact the property’s value — depending on their size, location, and other factors. We recommend asking about the presence of any water features so you can understand how they might impact any future returns.
How Does A Land Loan Differ From A Mortgage?
Land loans are the most common way to finance a land purchase. Because land loans are riskier for banks, they are more difficult to obtain than mortgages. You need to have good credit, and you’re expected to make a 20% to 25% down payment. Land loans often have higher interest rates too, and you may be asked to submit a business plan or details pertaining to how you’ll use the property.
Who Is The Best Land Broker?
Choosing the right land agent to support your sale is the key to finding the best property and negotiating a deal. Land transactions are much different than home transactions, so you’ll need an agent with specific expertise. Palmetto Realty is Central Florida’s top land broker. Clients from all over the state choose our firm to help them find the perfect piece of land.
Asking the right questions when buying land is the best way to manage risk and find the right property. If you’re finally ready to build a new home or own an outdoor recreational paradise, schedule an appointment with the team at Palmetto Realty today.