Many people have little to no experience buying land. It is not enough that you know what you want to do with the piece of land. You must prepare yourself, mentally, physically, and financially for the purchase. You want to make sure you do your research to avoid hassles from halting your search. You also want to make the most out of the land purchase by buying land for sale in a desirable location and at a reasonable price.
Even property investors make their fair share of land-buying mistakes. This is especially true if this is their first time buying a property with no building on it. To avoid costly mistakes in the future, don’t give in to the following regret triggers.
Skipping a Land Inspection
When buying houses, we are often advised to invest in home inspection. This is to find out if the house is in good condition and how much the maintenance and repair will cost. You can even negotiate the price or withdraw the sale depending on the results.
The same goes for buying a vacant land. You may not have a property to check, but the land itself can conceal some issues which makes it a must that you invest time and money for the land inspection. You want to make sure the land is suitable for whatever you plan on using it.
Aside from your future plans, you want the land to be in a safe location. Check the area’s topography, the property lines, access, flood plain, and neighbors. Invest in a surveyor to get to know the land better before finalizing the sale
Choosing a Wrong Financing Option
If you don’t intend to buy the land in cash, then you have to be careful in choosing a financing option. It is better if you have a high credit score so you can ask a local bank or a credit union to lend you money to fund the purchase. These two are usually more willing to finance land purchases compared to loan companies and national banks.
If the local bank or credit union denies your application, you still have other options to consider. You can opt for a seller-financing using a promissory note. This should outline the terms of your payment.
Tapping on your home equity is another option if you have enough equity in your home. You can buy the land using your borrowed equity and pay off your lender over time.
If you plan on building a home on the land, you can apply for government loans. This is perfect for low-income homeowners who are having a hard time finding other and financing options.
Failure to Keep up with Land Lingo
One should never join a battle without arming themselves with the right ammo. In this case, you need to learn basic land lingo. This will help you find the right kind of land where you can at the right place and in the right condition.
The internet can be a good source of information if you are not yet familiar with land lingo. This will give you a hint on what the land is about, what restrictions can be tied in the land, and if the land itself is part of a property owners association.
Assuming You Are Better off Hunting and Buying Land Alone
Buying land without the help of a land expert is possible. But then, why is risk making a property investment without professional advice? They have the skills, knowledge, expertise, and connections you can take advantage of which can make land buying a better experience.
With a professional land expert, you can ensure you can find land for sale that matches your needs and budget. They can help you negotiate a better price. They can even help you pinpoint warning signs if the land or seller is up to something suspicious.
Thinking All Details Presented Are Valid, Complete, and Up-to-date
These days, many people are willing to do anything just to get the best deal out of a sale. When presented with documents, don’t simply assume that all paperwork is valid, complete, and up-to-date. Do your research and allow the pros like your agent and lawyer to check the documents for you.
You want to make sure the seller is the legit owner of the land and that their documents are real. You also want to make sure you are buying a piece of land with title insurance. This will give you save you tons of headaches in the future.
A land is a huge investment. You will need to make lots of decisions and choose from many choices. If you are not careful, your investment can go down the drain. Make sure to take your time when buying your first land and to avoid these mistakes for a better land purchasing experience.