Questions to Ask a Realtor When Buying Land

Buying undeveloped land presents unique challenges compared to acquiring an existing home. Thorough due diligence is necessary to uncover potential issues and ensure the property aligns with your objectives. Your realtor is a valuable resource, and asking precise questions helps clarify the intricacies of land acquisition.

Understanding the Land’s Physical Attributes

Understanding a property’s physical characteristics is foundational. Inquire about boundaries and if a recent survey exists. Topography, whether flat, sloped, or hilly, influences construction costs and drainage patterns. Significant slopes may require extensive grading, impacting budget and design.

Soil composition is important, especially for building or septic systems. Ask if a percolation test (“perc test”) has been conducted; this assesses water drainage and septic feasibility. Understanding soil suitability for foundations and landscaping helps anticipate development costs. Inquire about existing structures or remnants, such as old barns or abandoned wells, as these may require removal or remediation.

Natural features like large trees, rock formations, or water bodies can enhance appeal but may have specific regulations or maintenance responsibilities. Ensure you understand the property’s physical access, including road frontage, private easements, or shared driveway arrangements and their maintenance obligations. Confirming these attributes early helps avoid unforeseen complications.

Assessing Utilities and Infrastructure

Understanding the availability and cost of connecting essential utilities is paramount. Inquire about water sources; determine if municipal water lines are accessible, or if a well will be necessary. Drilling a residential water well costs between $3,000 and $15,000, depending on depth and geological conditions. Permit requirements for well drilling vary by location.

For wastewater, ascertain if municipal sewer connections are available. If not, a septic system will be required; installation costs range from $3,610 to $12,403, with complex systems reaching $20,000 or more. A passed percolation test is a prerequisite for septic approval. Investigate electricity availability; connecting power can cost between $2,500 and $30,000, influenced by distance from the nearest power line.

Ask about natural gas lines or if propane will be the primary fuel source for heating and cooking. Inquire about internet and broadband access. While satellite internet is available in rural areas, other options like cellular, fixed wireless, DSL, or fiber optic connections may exist, though availability and speed vary significantly. Understanding these utility considerations helps in accurate financial planning.

Navigating Legal and Regulatory Requirements

Understanding the legal and regulatory landscape is a detailed aspect of land acquisition. Zoning regulations dictate land use and building types, specifying setbacks, height restrictions, and permitted structures. Ask about land use restrictions, such as agricultural preservation zones or conservation easements, which may limit future development.

Inquire about local building codes and permit requirements for construction, which ensure safety and construction standards. Understand any specific county or municipal ordinances that apply to the property. Clarify any existing encumbrances on the land.

Easements, such as utility or access easements, grant specific rights to others over a portion of the land. Covenants, Conditions, and Restrictions (CC&Rs) are private rules recorded with the deed, limiting land use and development, and may be enforced by a homeowners’ association (HOA). Environmental considerations are significant; ask about flood plain designations, wetlands, protected species, or historical contamination.

The clarity of the land title is paramount. A title search confirms legal ownership and identifies claims against the property, such as existing liens. Common types of liens include mortgage, property tax, judgment, or mechanic’s liens, which must be resolved before a clear title can be transferred. A thorough understanding of these legal and regulatory aspects is fundamental to a successful land purchase.

Exploring Financial and Transactional Considerations

Financial and transactional aspects warrant thorough investigation. Ask about current property taxes and their assessment, as these ongoing costs affect long-term ownership. Inquire about any special or planned assessments for new infrastructure or community improvements. Understanding the seller’s motivation and ownership duration can provide valuable context during negotiations.

Financing undeveloped land differs from a traditional home mortgage. Land loans typically require higher down payments, often 15% to 50% of the land’s value, higher interest rates, and shorter loan terms, sometimes five to ten years. Explore common financing options and whether seller financing is possible, as it can offer more flexible terms.

During the offer process, discuss standard contingencies for the purchase agreement. These often involve satisfactory results from soil tests, land surveys, and utility feasibility studies. Obtain an estimate of typical closing costs associated with land purchases, which include various fees and taxes beyond the purchase price. Comprehensive financial planning helps ensure the viability of the land acquisition.