Land purchase considerations
If you are looking to purchase land, there are several important items to consider.
- Which is the cost from the earth? If I pay $ 1,000,000 for 10 acres to build a mall, is that cost within my budget? Or is $ 500,000 the most I can afford and still have a profitable project?
- The rental 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 location suitable for million dollar homes or is it too close to commercial uses?
- That jurisdiction Is the land located? The city limits? Are you in the Extraterritorial Jurisdiction (ETJ) of the City? Is it in the county? The jurisdiction in which the property is located will dictate what rules and regulations must be followed. It could be advantageous to be in one particular jurisdiction (City A vs City B) instead of another. There may also be state and federal laws that will affect the property as well.
- If the property is in the City, what is the zoning category assigned to the property? The zoning category dictates the land use allowed on the property. If a property is not zoned or if a zoning change needs to be requested, that will add to time and cost. One thing to keep in mind is that zoning requests are not always approved.
- Write restrictions they are private agreements and specific restrictions on the land in question. They are written down and restrict the use of real property in some way. Deed restrictions may apply to the property, whether it is zoned or residential, and are in addition to local, state and federal rules. Write restrictions can be more restrictive than other government rules.
- Have utilities Has it spread to the site? Public services would include water, wastewater, electricity, natural gas, telephone, and cable television. Water is the most important thing. Water and wastewater 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 involve ongoing maintenance and a limited service life.
- Is any part of the property in alluvial plain? If so, the buildable or developable area of the property will be reduced. This, in turn, will usually reduce the value of the property.
- Which are the topographical ground conditions? Is it flat or is the terrain sloping? The steeper the slope, the more it will cost to develop the land due to the necessary cutting and backfilling of the soil. In general, flat terrain is preferred, although a hillside location for a home or office can provide a very pleasant view.
- Is there access to the road to the property? If so, is there a driveway and curb in place or will this have to be allowed and built? What are the chances that a permit can be obtained at this location or is there already a driveway nearby that could lessen the chances? Is the road in bad condition? If so, what are the chances that the roadway will be repaired and how could this affect my planned use?
- Year comfort it is a legal right to use someone else’s land for a specific purpose. Are there any easements on the property that could unduly restrict or affect my ability to improve the property? Examples of easements include utility easements that allow service providers to install and maintain utilities. Easements can also be the means of providing access to properties that are not otherwise facing the road.
- TO Link it is a lien on a person’s property to secure a debt that the property owner owes to someone else. Before purchasing a property, it is important to determine through the title search and pledge process if there is a pending bond on the property. It is best for the property owner to take care of the links before the buyer closes the property because it is easier to take advantage of a link that is released.