Land Buyers’ Checklist: What to Look for Before You Invest

Investing in land is one of the most tangible and potentially rewarding investments you can make. Unlike other assets that depreciate over time, land tends to appreciate, especially when chosen wisely. According to recent data from the USDA, rural land values increased by an average of 12.4% in 2023 alone, outpacing inflation and making it an attractive hedge against economic uncertainty.

But before you sign on the dotted line, there are crucial factors to consider. We’ve compiled this comprehensive checklist to guide you through the land-buying process, whether you’re looking for your future homesite, an investment property, or a place to build your off-grid dream.

Location and Accessibility

The old real estate adage “location, location, location” applies to land just as much as it does to homes. According to a 2023 National Association of Realtors report, property location remains the single most significant factor determining long-term value appreciation. At Discount Lots, we carefully vet every parcel based on this principle, ensuring our listings offer not just affordability but strong potential for future value.

When evaluating a property’s location, we recommend considering:

• Road access: Is there legal, deeded access to the property?

• Seasonal accessibility: Will the property be accessible year-round, or could weather conditions limit access during certain seasons?

• Proximity to amenities: How far is the nearest town, shopping centers, schools, and medical facilities?

• Future development plans: Are there any planned infrastructure projects (highways, commercial developments) that could affect property value?

A recent study by the Lincoln Institute of Land Policy found that properties with year-round access sell for up to 35% more than comparable parcels with seasonal or challenging access.

Legal Considerations and Due Diligence

Before purchasing land in Florida, California, or any state, thorough due diligence is essential. The American Land Title Association reports that nearly 25% of all properties have title issues that could affect ownership rights.

Key legal aspects to verify include:

• Title status: Ensure the title is clear and free of any liens, encumbrances, or disputes.

• Boundary survey: Confirm the exact boundaries of the property to avoid future disputes.

• Zoning regulations: Understand what you can and cannot do with the property.

• Deed restrictions: Check for any covenants, conditions, and restrictions that may limit your use.

It’s worth noting that our properties in Tennessee and Kentucky offer exceptional freedom with no zoning restrictions, allowing you complete flexibility to build what you want, whether it’s a traditional home, tiny house, cabin, or mobile setup. This freedom embodies the American Dream and makes these locations particularly attractive for buyers seeking creative freedom with fewer limitations.

Natural Features and Topography

The physical characteristics of the land have a significant impact on its usability and value. According to environmental assessors, properties with diverse natural features can be worth up to 20% more than flat, featureless lots of the same size.

When examining the land itself, we suggest evaluating:

• Topography and elevation: Is the land flat, sloped, or varied? How will this affect building and usage plans?

• Soil quality: Is the soil suitable for your intended use (building, agriculture, etc.)?

• Water features: Are there streams, ponds, or wetlands on the property? While these can be attractive features, they may also bring regulatory restrictions.

• Natural hazards: Is the property in a flood zone, fire-prone area, or other high-risk location?

For our buyers interested in sustainable living, our Arizona properties offer excellent agricultural potential, with soil conditions well-suited for homesteading, small-scale farming, or off-grid living. These affordable properties provide ample space for sustainable growth and self-sufficiency.

Utilities and Infrastructure

Access to utilities can significantly impact development costs and property usability. A 2023 survey by the National Association of Home Builders found that connecting utilities to raw land can add between $15,000 and $30,000 to development costs, depending on location and existing infrastructure.

When assessing utility access, consider:

• Water sources: Is municipal water available, or will you need to drill a well? If drilling, what’s the typical depth and cost in the area?

• Sewage options: Is there access to municipal sewer lines, or will you need a septic system?

• Electricity: Is power already at the property line, or will it need to be brought in?

• Internet and cell service: Is reliable connectivity available, or will alternative solutions be needed?

For those interested in off-grid living, evaluate the property’s potential for alternative energy sources like solar or wind power. Many of our properties are ideally situated for solar energy, with Arizona parcels receiving an average of 299 sunny days per year.

Environmental Considerations

Environmental factors can significantly impact land use and value. The Environmental Protection Agency (EPA) reports that environmental issues can affect property values by up to 15%.

Important environmental factors to investigate include:

• Environmental hazards: Check for any history of contamination or nearby hazardous sites.

• Protected species: Are there any endangered species or habitats that could restrict development?

• Wetlands: The presence of wetlands can severely restrict development options due to federal protections.

• Flood zones: FEMA flood zone designations can affect insurance costs and building requirements.

As climate change concerns grow, properties with sustainable features and climate resilience are increasing in value. A recent study by the Urban Land Institute found that sustainable land properties commanded a premium of 7-10% compared to similar conventional properties.

Financial Considerations

Land purchases involve unique financial considerations that differ from traditional real estate transactions. According to the Federal Reserve, raw land prices have historically appreciated at a rate of about 6% annually over the past decade, making it a solid inflation hedge. This trend holds especially true for land for sale in Florida, where growing demand and limited availability continue to drive long-term value.

Key financial factors to evaluate include:

• Total cost of ownership: Beyond purchase price, consider property taxes, insurance, and maintenance costs.

• Financing options: Land loans typically have higher interest rates and shorter terms than mortgage loans.

• Development costs: If you plan to build, estimate the costs of preparing the land, bringing in utilities, and construction.

• Investment potential: Research historical appreciation rates in the area and factors that might affect future value.

In today’s environment of rising inflation, tariffs, and economic uncertainty, land stands out as one of the most stable investments available. Unlike volatile stocks or over-inflated housing markets, owning raw land gives you a tangible, appreciating asset you control.

Local Market Analysis

Understanding the local market helps ensure you’re making a sound investment. Recent data from the National Association of Realtors indicates that rural land markets have seen robust growth, with a 25% increase in buyer interest since 2020.

When analyzing the local market:

• Comparable sales: Research recent sales of similar properties in the area to ensure fair pricing.

• Market trends: Is land in the area appreciating or depreciating? What factors are driving the market?

• Development patterns: Where is growth occurring, and how might it affect your property’s value?

• Economic indicators: Are local industries growing or contracting? How stable is the local economy?

A recent analysis by the Land Report found that rural land near growing metropolitan areas has appreciated at nearly twice the rate of more remote properties, highlighting the importance of growth trends in your investment strategy.

Future Considerations

Land is a long-term investment, so looking ahead is crucial. The Lincoln Institute of Land Policy projects that land with development potential near growing metropolitan areas could see value increases of 100-200% over the next decade.

When considering future potential:

• Long-term plans: How do your intended uses align with market trends and area development?

• Resale value: What features would make the property attractive to future buyers?

• Population trends: Is the area’s population growing, stable, or declining?

• Climate projections: How might climate change affect the area’s habitability and value?

Conclusion: Making Your Land Purchase Decision

Purchasing land is a significant decision that requires careful consideration of multiple factors. By thoroughly investigating the aspects outlined in this checklist, you’ll be well-equipped to make an informed decision.

Whether you’re drawn to the unrestricted freedom of our Tennessee and Kentucky properties, the agricultural potential of our Arizona parcels, or the beauty of our Florida land for sale, we’re here to help you find the perfect property for your needs.

In an era of economic uncertainty, land remains one of the few truly tangible assets you can own, something you can see, touch, and use. It’s a piece of the American Dream that’s increasingly precious in our digital world.

Ready to take the next step toward land ownership? Contact us today for a personalized consultation, and we’ll help you find the perfect property to match your vision and goals.

Frequently Asked Questions

What financing options are available for land purchases?
Financing land is different from purchasing a home. Traditional banks often require larger down payments (typically 20–50%) and shorter loan terms. However, companies like Discount Lots offer flexible alternatives such as rent-to-own programs and seller financing, often with no credit checks.

How do I know if the land I’m buying has legal access?
Legal access means you can reach the property via a public road or a legally recorded easement. Always ask for a deed access statement and verify through a title company or real estate attorney. Lack of access can reduce property value by 30–60%.

Can I live off-grid on any rural land?
Not all rural land allows for off-grid living. You’ll need to check local zoning regulations and building codes. That said, Discount Lots offers many parcels, especially in Arizona and Texas, that are ideal for solar, wind, and well-based systems, perfect for sustainable lifestyles.

How can I be sure I’m paying a fair price for the land?
Research recent comparable sales in the area, review market trends, and evaluate the property’s features (access, zoning, utilities, etc.). Discount Lots can also help guide you through pricing insights, as we specialize in sourcing undervalued, off-market properties.