Potential Advantages
- Secure the location: the right parcel may not be available later.
- More planning time: work on design, builder selection, financing and engineering.
- Potential appreciation: land can appreciate. It can also stagnate or decline. There is no guarantee.
Potential Risks
- Financing: land loans may have different down payments, rates and terms than home mortgages.
- Carrying costs: you may pay property taxes, HOA, maintenance and loan interest without living there.
- Rules can change: future zoning, development, utility costs and building codes may affect the plan.
Before You Buy, Answer These Questions
- Can I legally build what I want? Verify zoning and restrictions.
- Is there legal access? Do not assume a visible road equals legal access.
- Where are utilities? Determine availability and cost.
- What is the terrain? Grading and drainage can dramatically affect cost.
- Is the parcel in or near a wash/flood area? Investigate.
- Are there easements? Understand them.
- Is there an HOA? Read restrictions.
- What will financing look like? Talk with a land/construction lender before purchase.
Example
- Parcel A: $125,000. Utilities nearby. Easy build site.
- Parcel B: $80,000. Looks cheaper. But requires $70,000 additional site/utilities work.
Parcel A may actually be the less expensive building opportunity.
Property DNA Before Buying Land
A free Property DNA report can be an excellent first research layer before purchasing a parcel.
Depending on available data, it may help surface parcel characteristics, ownership and history, recorded or property information, nearby property information, geographic or risk information, and other public-record data.
But it does not replace specialized land due diligence.
How Lisa Helps
Lisa can help compare LAND PRICE + DEVELOPMENT REALITY + LOCATION + RESALE.
That is much more useful than simply finding the cheapest vacant lot.
