3 Things To Consider When Purchasing Lots

Real Estate Blog

When looking into real estate, many buyers tend to put their focus on houses and condos. However, there are other ways to invest in real estate. Lots are one type property that doesn't get much attention but are a great options for many buyers. Those who want to build their own home may want to check out lots for sale. Lots are also a great choice for real estate investors who may want to build on the property or sell it down the road. Here are three things to consider when taking a look at land for sale.

Is The Land Clear?

When it comes to construction, nothing can be started until the section of the property that will be built on is properly prepared. In some cases, clearing the land can be done fairly quickly and easily. However, if there are a lot of trees or there is uneven terrain, it can be more difficult and more expensive. Lot preparation involves grading the surface, removing trees, and removing brush. Preparing the land to build an average sized house costs on average between $1,232 and $4,254. Clearing a larger area can cost tens of thousands of dollars.

Utilities

Another thing to consider when purchasing lots is whether or not they already have utility hookups. Utilities hookups, such as sewer, electricity, and water, are a must when building on an empty lot. However, not every lot for sale has utility hookups. Adding these hookups can be pricey, especially if the lot is in a remote location. Hooking a lot up to utilities can cost anywhere from $10,000 to $30,000. You may also need permission from neighbors to run certain lines if they are close or run through their property.

Zoning

Another thing to consider when purchasing a lot is what you plan to do with the land. Zoning laws may make it difficult for you to develop the land as you wish. Looking into zoning before purchasing a lot is a must. If you want to build a commercial property, your land needs to be zoned for commercial structures. If you want to build a residential property, then residential zoning is a must. You may also want to consider hiring a land surveyor beforehand in order to determine where the property boundaries are and whether there may be future conflicts with neighbors. The cost of a land surveyor is between $337 and $669.

If you are looking into purchasing a lot, there are a few things to consider. Clearing the land and adding utility hookups can add to the overall cost of owning the property. It's also important to take land use and zoning regulations into account before making your purchase.

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5 March 2018

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