Buying land is an exciting prospect - whether you’re looking for undeveloped acreage for recreational use or you’re looking for the ideal spot to build your forever home. At Eaton Realty, we’re here to help you determine if buying land is the best option for you and to help you find the property of your dreams. 

Benefits Of Buying Land

For future homeowners with a talent for seeing potential, buying land instead of a finished house can be an exciting opportunity. Here are some of the benefits that make buying land an attractive option. 

More Flexibility

Perhaps the biggest appeal of buying land to live on is that you have a completely blank slate to work with and can design and build the home of your dreams exactly the way you want it. You won’t have to sacrifice the primary suite you’ve always wanted or accept the closet situation that’s a little weird - when you build your own home, you can have it all! 

Less Competition

There are many reasons why house hunters may avoid looking at land for sale - they need to move into a home soon, they don’t want the hassle of building from the ground up, etc. These obstacles mean that there is generally less competition for land. If you have a flexible timeline for moving into a new home, buying land can afford you more options and more room for negotiation in competitive real estate markets. 

Potential Investment Opportunities

Land is a finite resource - especially in areas where the real estate market is booming and land is quickly being bought up and developed. Buying land can be a great investment that can save or earn you money in the future. If you have the cash and know that eventually, you want to move to a particular location and build a home, buying land now when prices are likely to rise in the future can save you money down the road. Likewise, in a real estate market with rising prices and a rising population, you may be able to make a profit on land by buying now and selling later, whether you build on the land or not. 

Things To Consider When Buying Vacant Land

Buying land can give future homeowners a lot of options and control over their property. However, it also comes with quite a few hurdles and challenges. Any time you’re considering purchasing land, there are several things you’ll need to investigate and carefully consider to ensure the property is worth the investment. 

Zoning Restrictions

Zoning is one of the first things you should look into when considering a plot of land. Zoning laws dictate how buildings on an area of land can be used. Land can be residential, commercial, agricultural, or have a mix of these types. If your goal is to build a home on a piece of land that’s zoned for commercial use or agricultural use only, your best bet would be to keep looking somewhere else. The rezoning process is difficult, if not impossible.

City codes, local ordinances, and planning restrictions can also get in the way of your building plans. All of these things can put limitations on the types of structures you can build, or they may require you to take additional steps to gain approval for your build. Before buying land, have a clear idea of your end goal for the property so that you can plan ahead and do your research before trying to build on a property you won’t be able to use the way you want. 

Time Required For A Future Build

Buying vacant land is best when you don’t have any time constraints requiring you to move into a new house by a certain time frame. Acquiring all the necessary permits and approvals to build can take a long time, and the time to build can vary greatly. If you’re moving from out of state for a new job or you need to get out of a tiny apartment because you have a growing family, buying land to build a new home is probably not your best option for the immediate future. 

Surveys And Environmental Tests

When purchasing land, it’s often a good idea to have a professional do a survey to determine the property's boundaries. Knowing exactly where the property lines are ensures you know what you’re buying and can help you avoid legal issues.

Soil tests and geology reports can tell you if the property is buildable. If previous use of the property led to contamination, the potential health and safety concerns could prevent you from building. Likewise, if there’s a concern with the topography, such as steeply sloped or marshy, boggy land, preparing the property for construction could be costly. 

Access And Easements

When looking at undeveloped land, especially in more remote areas, it’s important to consider the property's access to roads and utilities. The farther the property is from utility lines, the more costly it could be to gain access to them. Find out if the property is landlocked - meaning that it’s completely surrounded by other properties and cut off from roads and utilities. If this is the case, you need an easement that grants you access to a road and utilities through a neighboring property. Make sure you fully understand the rights you are entitled to under the easement.

On the flip side, make sure to find out if there is an easement on the property you’re considering that grants access to a road or utilities to a neighboring property through your property. An easement on your property could limit what you can do with the land, and you need to know if it will interfere with your plans. 

Cost Of Developing Land

When you buy land intending to build a house, the two biggest and most obvious expenses are the land itself and the cost to build the home. However, there are several other potential expenses that you may need to account for, especially when the land is undeveloped. These include clearing and grading the ground so that it’s buildable, building access to infrastructure, including roads and utilities, environmental testing, and various permits for the work you’ll have done. These costs can add up, especially when you’re saving every dollar to build your dream home. 

Financing Options

When considering buying land, keep in mind that financing will look different than it does for traditional home buyers who take out a mortgage. Financing options are often more limited for undeveloped land because lenders can’t leverage land the same way they can leverage a house. Lenders often expect a down payment of 50% or more of the total purchase price, compared to 20% or less on a finished home. Many buyers purchasing land pay cash to avoid interest rates and fees associated with these loans.

Keep in mind also that if you do choose financing options for the land itself, you’ll need a different type of loan to actually build on the land. A construction loan is used to pay for a new build. There are several types of construction loans, so be sure to explore these and know what you qualify for if you have plans to build soon. 

Developed Vs. Undeveloped Land

When looking at vacant land for sale, the land can be developed, undeveloped, or somewhere in between. Fully developed land is usually found in subdivisions and cities, and the lot is fully prepared to build on. Soil tests have been completed, and the land is cleared and graded for proper drainage. Access to the land via completed roads isn’t a problem for developed land, and hookups for all major utilities - including water, gas, electricity, sewer, and internet - are available and ready to go. 

Undeveloped land is typically more remote and secluded, which may mean more freedom and privacy for buyers. It also means more work and additional costs, as the ground will have to be prepared for building and utilities routed to the property. Depending on how remote the property is, some utilities such as water and sewer may not be available, requiring a private well and septic system. 

Vacant land can also fall somewhere in between fully developed and undeveloped. It’s important to understand the difference between developed and undeveloped land and to find out how developed a plot of land is, if at all, so that you know how much work lies ahead. 

Finding A Builder After You Buy Land

Building a home is a huge undertaking and investment. In addition to learning about all the ins and outs of searching for land for sale, learn about the home-building process and find a builder you trust. We’ve compiled a list of Tampa area builders who do outstanding work to help you find the right team to build your dream home. 

Why You Should Work With A Realtor To Find Land For Sale

Do the considerations of buying vacant land sound a little overwhelming? Working with a great Realtor can take away some of the stress. A Realtor will know what to look for and what questions to ask so that you don’t end up buying vacant land that you ultimately can’t use the way you want. Here are some other benefits of working with a Realtor to find the right property for you:

• They can help determine what a fair market value is for vacant land.
• They’re familiar with local regulations that determine property usage and will help you understand zoning.
• A Realtor will help make sure surveys and tests get done as needed and find out about easements, access to utilities, and other nuances about the property, such as whether or not the land can be subdivided.
• They may have access to land for sale that is not publicly listed on the market.
• Realtors help with negotiations and creating an offer.
• They can give recommendations on builders for when you’re ready to build your dream home.

At Eaton Realty, we can help you find the right land for your needs. Our team of experienced and professional realtors will make your property search a breeze.