Land Purchase Considerations
If you are looking to purchase land, there are several important elements to consider.
-
Which is the cost from the earth? If I pay $1,000,000 for 10 acres to build a shopping center, does that cost fit into my budget? Or is $500,000 the most I can pay and still have a profitable project?
-
He rent does it work for its intended use? For example, if someone is trying to build a convenience store, is the site in a high traffic area? Or if someone wants to build expensive houses, is the site suitable for million dollar houses or is it too close to commercial uses?
-
That jurisdiction is the land located? City limits? Is it in the Extra Territorial Jurisdiction (ETJ) of the City? Are you in the county? The jurisdiction in which the property is located will dictate what rules and regulations must be followed. It may be advantageous to be in a particular jurisdiction (City A or City B) over another. There may also be state and federal laws that will also affect the property.
-
If the property is in the city, what is the zoning category assigned to the property? The zoning category dictates the land use permitted on the property. If a property is not zoned or if a zoning change must be applied for, that will increase time and cost. Something to keep in mind is that zoning change requests are not always approved.
- write restrictions they are private agreements and restrictions specific to the land in question. They are noted in the deed and restrict the use of the property in some way. Deed restrictions can be attached to property, whether commercial or residential, and are in addition to local, state, and federal regulations. Write restrictions can be more restrictive than other rules in effect.
-
Have utilities has it spread to the site? Utilities would include water, sewer, electricity, natural gas, telephone, and cable television. Water is the most important. Water and sewage are often the most expensive utilities to extend to a property. There are other ways to get water service, such as drilling a well or building a septic system for sewage. However, these solutions also imply continuous maintenance and a limited lifespan.
-
Is any part of the property in a floodplain? If so, the buildable or developable area of the property will be reduced. This, in turn, will normally reduce the value of the property.
-
Which are the topographic ground conditions? Is the land flat or sloping? The steeper the slope, the more it will cost to develop the land due to the necessary cut and fill of the soil. Flat terrain is generally preferred, although a hillside location for a home or office can provide a very pleasant view.
-
Is there road access to the property? If so, is there a driveway and curb cut or will it have to be allowed and built? How likely is it that a permit can be obtained at this location or is there already a driveway nearby which might lessen the chances? Is the road in bad condition? If so, what are the chances that the road will be repaired and how might this affect my planned use?
-
Year comfort it is a legal right to use another’s land for a specific purpose. Are there any easements on the property that may unduly restrict or affect my ability to improve the property? Examples of easements include utility easements that allow utility providers to install and maintain utility services. Easements can also be the means of providing access to property that would not otherwise have frontage on the road.
-
IN link is a lien on a person’s property to secure a debt the property owner owes to another person. Before purchasing a property, it is important to determine through the title search and pledge process whether there is an outstanding lien on the property. It is best for the property owner to take care of the liens before the buyer closes on the property because it is easier to take advantage of a lien release.
