What You Need to Do When Buying Land: A Step-by-Step Guide

Buying land is an exciting but complex process. Whether you plan to build a home, start a business, or invest in real estate, making sure that the land you purchase is a smart investment is crucial. There are several important steps you must take to ensure you're making a sound decision. In this guide, we’ll cover everything you need to do when buying land—from walking the property and checking for wetlands to getting a survey and talking with neighbors.

Step 1: Walk the Property

One of the most important things you can do when considering a piece of land is to walk the property yourself. Pictures and online listings can only show you so much, and it's essential to experience the land in person. Walking the property allows you to assess the terrain, natural features, and any potential obstacles, such as steep slopes, rocks, or dense vegetation. You’ll also be able to confirm the boundaries of the land and get a better sense of its overall condition.

Make sure to check the access points, as well. Is there a clear path to reach the property? Are there any nearby roads, or will you need to create access?

Step 2: Get Comparable Sales (Comps)

Before making an offer, it’s important to get comps—comparable sales in the area. Comps help you determine whether the asking price for the land is fair and aligned with the market value. Look for similar-sized properties in the area with comparable zoning and features, such as location, utilities, and terrain. You can use online resources like Zillow, Redfin, or work with a local real estate agent to find comps and gauge the appropriate price.

Step 3: Hire a Surveyor

One of the most important steps in the land-buying process is to get a survey. A land survey confirms the exact boundaries of the property and ensures you’re getting what you pay for. It can also identify potential encroachments from neighbors or other issues, like incorrect fencing or disputes over property lines. A survey is essential, especially if you plan to build on the land. It helps you avoid legal issues down the road and clarifies the size and shape of the land.

Step 4: Check for Wetlands

If you’re considering land for construction or farming, it’s important to check whether the property is classified as a wetland. Wetlands are protected by local, state, or federal regulations and often come with restrictions on how they can be used. Building on wetlands may be prohibited or require special permits. Check with the U.S. Army Corps of Engineers or your local environmental agency to find out if the land falls within a wetland zone. Understanding this early on can save you time and money and help you plan accordingly.

Step 5: Check for Flood Zones

It’s critical to check if the land is in a flood zone. Properties located in floodplains may have increased risks of flooding, which could affect your ability to build or use the land as intended. Additionally, flood zone properties often require higher flood insurance premiums, which can add significant costs to your long-term investment.

Use FEMA flood maps or consult with a local government agency to verify whether the land is in a flood zone. Even if the land isn't in a high-risk flood area, understanding the terrain and any potential water drainage issues is essential.

Step 6: Review Land Use Restrictions

Another important step is to check for land use restrictions. Local zoning laws or deed restrictions can limit how you use the property. For example, some areas might restrict certain types of construction, or there may be limitations on farming, commercial use, or even the size and style of homes you can build. Be sure to review the land's zoning and deed restrictions before you buy. You can often find zoning information from your local government or a title company.

Step 7: Perform a Perk Test

If you plan on building a home or installing a septic system, it’s important to perform a perk test. A perk test measures how well the soil drains, which directly impacts the ability to install a septic system. If the soil doesn’t absorb water well, you might face significant challenges in setting up a septic system, or you may be forced to find another solution. Some municipalities require perk tests as part of the permitting process, so make sure to check this before purchasing the land.

Step 8: Determine How to Get Water to the Property

Accessing water is another essential consideration when buying land. If the property isn't connected to municipal water, you’ll likely need to drill a well or find another alternative water source. Drilling a well can be expensive, and its feasibility depends on the location and the depth of the water table. Be sure to assess the costs and logistics of bringing water to the property before making your decision.

Step 9: Talk to the Neighbors

One often overlooked step when buying land is to talk to the neighbors. They can provide invaluable insights into the area, the land, and any issues that might not be readily apparent. Neighbors often know about zoning changes, property disputes, and other important factors that could affect your decision. A casual conversation with people living nearby can give you a better sense of the property’s history and its potential for future use.

Step 10: Get a Title Policy

Finally, it’s crucial to get a title policy to protect your investment. A title policy ensures that you’re the rightful owner of the land and protects you against any claims or disputes regarding the land’s ownership. Even if the seller says the title is clear, a title insurance policy can safeguard you from hidden issues, like unpaid property taxes or boundary disputes that might arise after the sale.

Conclusion:

Buying land is a big decision that requires careful planning and research. By following these 10 steps, you can protect yourself from costly mistakes and make an informed decision about your land purchase. Always take the time to walk the property, check for potential issues like wetlands or flood zones, and verify that the land can be used as you intend. If you take these steps, your investment in land will be a more secure and rewarding one.