Thinking About Buying Land? Here’s What You Need to Know First

Purchasing land might seem straightforward compared to buying a developed property, but this investment comes with its own set of considerations and potential challenges. Whether you’re looking at land for sale in Florida, exploring California land for sale, or considering other locations, proper preparation can make all the difference in your land-buying journey.

Land ownership represents one of the most fundamental forms of real estate investment—something that can appreciate over time while offering you countless possibilities for future use. Before making this significant financial commitment, let’s examine the key factors you should consider.

Understanding Your Purpose

Before searching for land in Florida for sale or elsewhere, clarify why you’re buying. Are you planning to build a home immediately, hold the land as a long-term investment, use it recreationally, or develop it for farming? Your intended purpose will guide every subsequent decision.

For instance, if you’re interested in farm land for sale in Florida, you’ll need to verify soil quality, water rights, and agricultural zoning. Alternatively, if you’re buying land to build a home, you’ll need to investigate building permits, access to utilities, and potential construction challenges.

Location Considerations

Location remains paramount in land purchases. Consider these factors:

Accessibility: Does the property have legal, year-round access? Some remote parcels might have seasonal roads or require crossing someone else’s property. When browsing listings on discount lots, pay close attention to access details—they matter more than many realize.

Proximity: How close are essential services like schools, healthcare facilities, and shopping? Even if you plan to build a remote retreat, knowing how far you’ll need to travel for necessities is important. DiscountLots often provides helpful information about nearby amenities to guide your decision.

Future Development: Research the surrounding area’s development plans. A remote parcel today could be surrounded by subdivisions in a decade. With discount lots, you can explore land opportunities in areas that may see future growth, giving your investment long-term potential.

Zoning and Restrictions

Before you buy land in Florida or any state, thoroughly understand local zoning regulations and restrictions that could affect your plans:

• Building codes and permit requirements
• Zoning restrictions that might limit property usage
• Homeowners association (HOA) rules, if applicable
• Environmental regulations that may impact development or land use
• Easements that could affect your property rights or access

Physical Characteristics

When evaluating California land for sale or properties in other regions, carefully assess:

Topography: Steeply sloped land can significantly increase building costs or may be unsuitable for certain uses.
Soil Conditions: Poor soil quality can affect foundations, septic systems, and agricultural viability.
Flood Risk: Check FEMA flood maps and historical flooding data before purchasing.
Natural Hazards: Depending on location, be aware of risks from wildfires, hurricanes, earthquakes, or other natural events.

Utility Access

One of the most significant potential expenses when developing raw land is establishing utilities:

Water: Is there municipal water access, an existing well, or will you need to drill one?
Sewer/Septic: Is the property connected to municipal sewer, or will you need a septic system? Has a perc test been performed to determine septic viability?
Electricity: How close are power lines, and what will it cost to connect?
Internet/Cell Service: Especially important if you plan to live or work from the property.

Financial Considerations

Land purchases involve unique financial considerations:

Financing: Land loans typically require larger down payments (often 20-50%) and have higher interest rates than home mortgages.
Property Taxes: Even undeveloped land incurs property taxes. Research the current tax burden and how it might change if you develop the property.
Holding Costs: If you’re not developing immediately, calculate the ongoing costs of property taxes, minimal maintenance, and any loan payments.

Conducting Due Diligence

Before finalizing any purchase of land in Florida for sale or other locations:

• Review property surveys to confirm boundaries
• Order a title search to identify any liens or encumbrances
• Get environmental assessments if there are concerns about contamination
• Research water rights, especially important in western states
• Verify all legal access points and easements

FAQs About Buying Land

How is financing different for land compared to homes?
Land loans typically require larger down payments (20-50% versus 3-20% for homes), feature higher interest rates, and shorter loan terms. Many traditional lenders are hesitant about raw land loans, so you might need to explore specialty lenders or seller financing.

Can I build whatever I want on my land?
No, what you can build is determined by local zoning laws, building codes, and possibly HOA regulations. Always check with the local planning department before purchasing to ensure your intended use is permitted.

Is buying land a good investment?
Land can be a solid investment, but it’s typically considered longer-term and less liquid than other investments. Unlike rental properties, undeveloped land doesn’t produce income while you hold it, yet it still incurs property taxes and potentially other expenses.

What additional costs should I budget for when buying land?
Beyond the purchase price, budget for property taxes, survey costs, soil tests, water/septic evaluations, utility connection fees, road development, clearing costs, and architectural/engineering fees if you plan to build.

How do I know if a piece of land can have a septic system?
You’ll need a percolation (perc) test to determine if the soil can adequately absorb and filter waste. Some areas with poor percolation may require expensive alternative septic systems or might not be buildable at all.

Whether you’re looking at land for sale in Florida, California land for sale, or property in any other state, taking the time to thoroughly research and understand what you’re buying will help ensure your land purchase becomes an asset rather than a source of unexpected challenges.