Vacant lots are becoming extraordinarily popular in the real estate sphere right now because of the massive scramble for land that’s happening in most cities. Developers realize that vacant land is currently offering an incredible return! If you want in on this, here’s the information you need to know.
Get to Know the Knitty Gritty
What is vacant land? Lots without anything in them that haven’t been developed are called vacant lots because nobody lives in them: but it also describes what utilities are often in these properties. Instead of looking at finished homes, buying vacant land is a large gamble that can be hard to predict unless you know what you’re looking for. Pay attention to how much time and effort you’re willing to put into a property, and build a budget for yourself detailing how much you’re ready to pour into completing this project.
Ensure that It Can Be Connected to Water and Electricity
Many vacant lots don’t have any water, electricity, or sewage connections. These can cost one to five thousand dollars each to connect, and that price only goes up further if you’re far away from the nearest connection. Location matters, so be sure to try to look at vacant lots that are within a couple of miles from a lot that’s developed and used. This will reduce the cost of pulling these services out to you.
Check the Area’s Zoning Laws
Before you even consider a piece of property: pay attention to the zoning laws of the area you’re in. If you want to build a large industrial park, you don’t want to buy land in a residential area, and the same goes for the opposite situation. Pay attention to what zoning is necessary and what you can do to create the perfect investment property. When buying vacant land to build on, the nice thing is you don’t have to be chained to any one location, so look around.
Avoid Buying Land That Needs Extensive Corrections
If the land has a creek running through it that you don’t want, and the soil is full of rocks despite you looking for farmland: it’s okay to admit it’s not right and keep looking. You’ll have to connect some lots up to water and electricity, that’s a given, but it can be incredibly expensive if the land itself isn’t a good match. So don’t fall for a piece of property that has nothing that you’re looking for except for the price.
Pay Attention to Any History of Flooding
A lot of vacant lands haven’t been raised and aren’t completely level. This means you may be at high risk for flooding damage. To avoid this as much as possible, try to look out for signs of flooding and pay attention to the FEMA disaster website for flood zones and maps on which areas gather the most water. Although your real estate agent should tell you this, it doesn’t hurt to do a little research yourself.
Shop Around In and Out of Your Area
If the vacant land in your area is too expensive, and you’re not finding anything you like: don’t be afraid to shop out of town! Thanks to the technological changes of the last ten years, you can attend a home walkthrough, talk to the realtor and get to know the seller, all from several states away. Don’t be afraid to get out there and get to know the other available options.
Empty Lots Are the Blank Slate of Real Estate
Whether you’re developing land to resell or building a home or business location for yourself: buying vacant land to build on is one of the best ways to get the property for cheap. A lot of vacant lands are inexpensive, and although you do have to invest a lot of money to get it to a sellable level: the payoff can be immense.