From residential development to a recreational paradise, buying land in Central Florida opens up a whole world of possibilities. If your goals include building a home or starting a business, utility access is an important consideration. It’s a good idea to understand what utilities the property has as well as any investment required to add utilities in the future.
Types Of Land Available For Purchase
Not all land has the infrastructure needed to support development. Depending on its current state, vacant land falls into three categories: raw, unimproved, and improved.
- Raw Land – If a property is classified as “raw”, it’s been completely untouched in terms of development. Chances are it probably can’t be accessed by road. As a result, raw land is usually much cheaper than unimproved or improved land, but it’s also much more expensive to develop.
- Unimproved Land – Unimproved land may have had modifications or minor maintenance and it can usually be reached by road. However, it typically lacks utility access and basic infrastructure. Unimproved properties are usually on the outskirts of urban or suburban areas, and they’re often highly attractive properties for developers.
- Improved Land – Improved land usually has utility access as well as basic infrastructure (roads, sidewalks, sewers, and power). Because improved land doesn’t require significant development, it’s usually more expensive.
How To Determine If A Property Has Utilities
If you’re considering unimproved land, the easiest way to determine utility access is to ask the listing agent or check the listing description; however, sometimes it’s not always clear. Your land agent can assess the property and help you determine what utilities are available, and worst case — you can even call utility companies to see if they offer service to a specific property.
Should You Buy Land Without Utilities?
While it’s entirely possible to develop a home or business on raw or unimproved land, remember that this may require a larger investment, and you’ll likely need support or buy-in from local government. You can contact utility companies directly to see if they’re willing to offer service to the land or planning to do so in the future.
However, if either the local government or utility companies are blockers, there are other options too. You can manage your own utilities by drilling a well, installing a septic tank, or even buying a gas tank with a line. Of course, you’ll need to ensure local code permits these activities, but this is also something your land agent can help you determine. You’ll also want to factor these costs into your financial plan for the property.
If the property is truly raw land and isn’t accessible by road, then things can be a bit more difficult. In order to obtain financing for the land purchase or to use it for residential or commercial purposes, you must be able to access it by road. You may need to convince a local government will establish access to the property.
Just because a property lacks utility access doesn’t mean it’s a bad investment. This is where we encourage you to rely on the expertise of your land agent to help you determine what options are possible. Your agent should be familiar with local laws and municipal codes and can help determine if establishing utilities or access to the property is feasible.
If you need help determining whether a property has utility access, get in touch with the team at Palmetto Realty today.