The right parcel can provide an excellent investment opportunity. Knowing the best way to develop a property will greatly increase your income potential while maximizing your return. At times, this can be easier said than done, so here are some guidelines to keep in mind if you are interested in developing a vacant plot of land.
1. Find an experienced agent who has extensively negotiated land deals for buyers as well as sellers. It’s also important to not solely rely on this agent. You’ll want to do your own research/homework as well.
2. Be financially informed. Proof of funds, tax break incentives and loan potential are critical aspects of the land-buying process. Determining your budget based on available cash is encouraged as lenders are less inclined to provide assistance for land that has not yet been developed.
3. Know the infrastructure. Don’t assume that a property has water, electricity or sewers in place. Road access isn’t guaranteed either. These potentially hidden costs can be the difference between a vacant acreage being profitable or not.
4. Conduct thorough inspections and tests. Not only will this better help you understand exactly what you are buying, but can provide insight into how the property has been preserved. Flooding potential or contaminated soil are just a couple of red flags you need to watch for.
5. Zones, codes and ordinances can limit the earning potential on your property. It’s important to keep you vision within the restrictions of a local governing body.
Find the best development land for your lifestyle with the help of the nationwide team of experts at United Country Real Estate. Contact one of our experienced agents today and learn how you can leverage more than 95 years of industry innovation to accomplish your goals.
Source: https://realestate.usnews.com/real-estate/articles/the-dos-and-donts-of-buying-vacant-land
