WHAT QUESTIONS SHOULD YOU ASK WHEN PURCHASING LAND?
Buying land is an exciting but daunting process. Land is a big investment that requires careful consideration and planning on the buyer’s part. Knowing what questions to ask before purchasing land is essential for getting exactly what you need out of your new property. Whether for residential or commercial use – these are some key questions to consider when purchasing land.
Let’s start with an overview of basic questions, then examine individual factors more closely so you know exactly what to ask, why, and when. With these questions you’ll be much better outfitted for a successful land purchase.
Questions to Ask When Purchasing Land
Buyers should ask about zoning regulations in the area they’re looking at buying in; this will determine whether their desired usage of the land is allowed by local laws. You should also inquire how close any existing structures are to the boundaries of the property and if any restrictions are associated with them. Finally, potential purchasers must be aware of any transfer fees or taxes related to buying the land. Failure to do so could lead to unexpected costs down the line.
Ask about the plot’s acreage and if any zoning laws or deed restrictions may apply. Secondly, inquire into what type of inspections have been conducted on the land and how much you can expect to pay in property taxes each year. It’s also beneficial to research local regulations that could affect your plans for developing the area before entering a purchase agreement. A real estate agent that’s experienced in land purchases can help with more specific property details and zoning questions.
Local Laws and Regulations
Zoning laws and deed restrictions are essential considerations as they can affect what you may build on the property and how you use it. Building codes help ensure that any structures built to meet minimum safety requirements. Familiarize yourself with applicable land use rules to ensure your development plans comply with local ordinances. You must make sure you can do what you intend to do before signing anything! Lastly, remember property taxes and how much you’ll expect to pay annually.
Make sure to ask questions regarding the current condition of existing utilities, such as any necessary repairs or renovations needed before use. Being informed beforehand will help you avoid any major surprises upon closing day and that you can utilize the property as you intended.
Price and Financing Options
Before signing any agreement or making an offer on the property, ask about the current prices and installment payment plans offered by both private sellers and banks. Make sure you understand all the loan requirements, including interest rates and repayment terms. Additionally, inquire whether there are any special programs or incentives that could help lower your overall costs. With this information, you’ll better understand how much money you will need upfront or monthly for your land purchase.
Before purchasing land, you should always consider the surrounding environment and any potential impacts that could affect your desired use for the property. It is essential to ask questions about soil contamination, water contamination, wildlife habitat preservation, air quality issues, and hazardous materials on or near the property. Here are some ways to learn more about the land:
Check historical records of environmental concerns related to the land. This can be done through local government offices or online sources such as EPA datasets.
Visit the site personally if possible and observe any signs of pollution or other damage that past activities in the area may have caused.
Confirm with current owners whether they are aware of any environmental hazards associated with their property. Ask them what steps they’ve taken to address those risks if necessary.
Hire an environmental consultant who can inspect the land and provide a professional assessment. They will also be able to advise you on how best to manage any existing threats that might exist onsite.
Taking these steps protects your investment from liability while also helping you understand how suitable your potential purchase is before you’ve signed anything.
Securing Your Future Paradise
Buying land is an exciting and rewarding experience. Still, it can also be a risky investment if you don’t take the time to ask the right questions.
Arm yourself with as much information about the property as possible, including local regulations and utility accessibility. It’s highly recommended to take extra time during this process to research potential environmental considerations related to the parcel. This critical information could save you from costly clean-up fees or other issues further down the line.
Finally, work out any financing options beforehand so that you understand precisely how much money needs to come out of pocket upfront and which payments need to follow afterward.
With these questions, due diligence, and the help of an experienced real estate agent, you’ll protect your potential piece of land now and well into the future. If you’re looking to purchase land, The Storck Team is here to help! With years of experience in the Colorado real estate industry, we can provide you with the expertise and guidance you need to make the best decision for your next land purchase. Contact us today to get started!
Tatyana and Aaron have over 36 years of combined experience in buying, selling, and investing in real estate. Between 2020 and 2022 they had 282 buy/sell transactions. Approximately 70% of those transactions were in Aurora, Centennial, and Parker.