When you’re looking at properties available for sale, you may get the itch to sort them from the lowest price to the highest: this is where vacant lots will start showing up. For less than five thousand dollars, you can find a quarter of an acre of land in most areas that haven’t yet been developed. The important thing to consider is how undeveloped it is.
If it doesn’t have water access yet, will you be able to sell it for anything? Here’s everything to know about buying property without water and how it could be the right choice for you.
How to Tell if Land Has Water
Often a listing itself will tell you whether a property has water access or not. If it’s unclear, you can ask the listing agent or even talk to the current property owner. The city or a local municipality provides water, so it’s a good idea to know what you’re getting into before buying the land.
If you’re on the property itself, look for flags or painted marks on the grass itself. This could show that there are plans to put connections in or mark where water already is. If you still can’t tell, look at the deed or talk to the local municipality about whether the address is connected or not.
Should You Buy Land Without Water?
This question depends on how far out your property is and other connected homes in your area. Adding a freshwater connection can cost between $1,500 and $3,000 for the project: or could cost even more if you’re further out. Water main installations can cost between $50 to $150 per foot to close the distance; this can be prohibitive for many people.
If the distance is close enough that you can justify this expense: go for it! This will ensure your property increases in value.
Can You Turn This Around For Money?
Absolutely! When you’re looking to invest in land and give it water access, you’re building value into the property. This action also allows other properties to get developed since the water main is closer, creating a community and increasing your property value. An investment like this, that’s less than five thousand dollars, can add a lot of weight.
If you decide not to give it water access, you can still resell your land for profit! So it’s important in these cases to ensure that you wait for a good market peak or buy the property when it’s incredibly inexpensive so that you can make a large profit off of it.
When Is This A Bad Idea?
Sometimes buying land with no connections to it is a waste of money. This is most clear when the property is extraordinarily far off the grid or only close to small towns that aren’t spreading much. Also, buying an unconnected lot is only a smart investment if you know the area will have an economic boom with plenty of people coming out to the area within the next ten to fifteen years. Otherwise, you might be sitting on that property for years without any growth in value or interest from buyers.
Property’s Value Is Constantly Changing.
Regardless of water access, a property’s value will change constantly. It depends on factors like whether you’re in a sellers’ market or a buyers’ market and how much land around the property is being purchased and put into use. Although it’s impossible to predict with complete certainty whether a piece of land will succeed, if you take the time and do your research, you can make a huge return on almost any piece of property.