Looking to Buy Land? Avoid These 7 Common Mistakes

Purchasing land is one of the most significant investments you can make. Whether you’re looking to build your dream home, start a farm, or secure your financial future with land for sale in Florida or California, the journey requires careful planning and due diligence.

At Discount Lots, we’ve guided countless clients through their land-buying journey, and we’ve observed the same mistakes appearing time and again. Let’s explore the seven most common pitfalls land buyers encounter and how you can avoid them.

1. Skipping Due Diligence on Zoning and Land Use Restrictions

Nothing derails land ownership dreams faster than discovering your perfect plot can’t be used as intended. According to the American Planning Association, approximately 67% of land disputes arise from zoning misunderstandings.

What to do instead:

• Contact the local planning department before purchasing

• Request a detailed zoning map and land use ordinance information

• Verify permitted uses, building restrictions, and setback requirements

• Consider hiring a land use attorney for complex situations

For example, if you’re looking to buy land in Florida for agricultural purposes, you’ll need to ensure the property is zoned appropriately. Many counties have specific agricultural zoning classes with varying restrictions.

2. Overlooking Access and Utility Availability

A beautiful piece of California land for sale might seem like a perfect deal until you realize there’s no legal access road or utilities nearby. A recent National Association of Realtors study found that 41% of rural property buyers underestimate utility connection costs.

Before purchasing, verify:

• Legal access through deeded roads or recorded easements

• Proximity to electrical lines, water, and sewage systems

• Cost estimates for bringing utilities to the property

• Feasibility of alternative solutions (solar power, wells, septic systems)

We recently worked with a client who saved over $30,000 by choosing farmland for sale in Florida with existing utility connections rather than a slightly cheaper parcel requiring extensive infrastructure development.

3. Neglecting Professional Property Surveys

According to the American Society of Civil Engineers, boundary disputes account for approximately 20% of all real estate litigation, with improper surveys being the leading cause.

A professional survey is non-negotiable when buying land. It verifies:

• Exact property boundaries

• Encroachments or easements

• Flood zones and environmental features

• Accurate acreage calculations

The cost of a survey (typically $300-$1,000) is minimal compared to the potential legal expenses from boundary disputes, which can easily exceed $25,000 according to legal industry data.

4. Rushing Through Environmental Assessments

Environmental issues can significantly impact land usability and value. The Environmental Protection Agency reports that remediation costs for contaminated land have increased by 18% since 2020.

Key environmental factors to assess:

• Soil quality and potential contamination

• Wetlands designations

• Endangered species habitats

• Flood zone classifications

• Historical uses of the property

When helping clients buy land in Florida, we always recommend soil testing, especially for agricultural purposes, as Florida’s diverse soil types can dramatically affect farming possibilities.

5. Miscalculating Total Ownership Costs

Land ownership involves more than just the purchase price. Property tax rates vary widely across states, with some areas seeing increases of 5-8% annually according to the Lincoln Institute of Land Policy.

Include these costs in your budget:

• Property taxes (verify current and projected rates)

• Insurance requirements

• Maintenance costs (clearing, road maintenance, erosion control)

• Potential assessment fees or HOA dues

• Development costs if the building is planned

Our financing specialists work closely with clients to create comprehensive budgets that account for all ownership expenses, ensuring there are no financial surprises down the road.

6. Failing to Consider Future Development Around the Property

Land values and usability can be dramatically affected by surrounding development. A 2023 Urban Land Institute report indicates that properties adjacent to new commercial developments experienced value changes of -15% to +25% depending on compatibility.

Research these aspects before buying:

• Local master development plans

• Pending commercial or residential developments nearby

• Infrastructure projects (roads, utilities, public facilities)

• Growth trends in the surrounding area

For California land for sale, this is particularly important due to the state’s rapid development and strict land use regulations.

7. Using Inadequate Financing Strategies

Traditional mortgages are often unavailable for raw land purchases. According to the Federal Reserve, only 30% of land purchases qualify for conventional financing, with interest rates typically 1-3% higher than residential mortgages.

Explore these financing options:

• Seller financing (often with more flexible terms)

• Local banks with specific land loan programs

• Farm Credit Services for agricultural land

• Home equity loans if you own another property

• Cash purchases with flexible payment options like those we offer at Discount Lots

At Discount Lots, we provide accessible financing solutions that don’t require perfect credit, making land ownership possible for more people. Our specialized programs help clients overcome the financial barriers that often prevent land purchases.

If you’re considering land in Tennessee or Kentucky, here’s something unique: our properties in these states come with no zoning restrictions. That means you have total freedom to build what you want , a home, a tiny house, a cabin, or even a mobile setup. This flexibility truly reflects the American Dream and makes these locations a standout choice for buyers looking for creative freedom and fewer limitations.

Meanwhile, in Arizona, many of our available lots offer strong agricultural potential , perfect for buyers interested in homesteading, small-scale farming, or off-grid living. These properties are not only affordable but also offer room for sustainable growth.

And in today’s world of rising inflation, tariffs, and economic uncertainty, land remains one of the most stable and inflation-proof investments. Unlike volatile stocks or over-inflated housing markets, owning raw land gives you a tangible, appreciating asset you control.

Conclusion: Your Path to Successful Land Ownership

Buying land requires thorough research and careful planning, but the rewards of ownership are substantial. By avoiding these common mistakes, you can join the growing number of successful landowners who have secured their piece of the American dream. Whether you’re interested in farmland for sale in Florida, California land for sale or properties in other states, Discount Lots is here to guide you through every step of the process. Our extensive listings, flexible financing, and expert guidance help make land ownership accessible to everyone. Ready to start your land-buying journey? Browse our current properties or contact our land specialists today to discuss your land ownership goals.

FAQs About Buying Land

How long does the land-buying process typically take?

While every purchase is unique, most land transactions can be completed in 30-60 days. However, complex properties requiring extensive due diligence may take longer.

What’s the minimum credit score needed to finance land?

Traditional lenders typically require scores of 680+ for land loans. However, at Discount Lots, we offer financing options without credit checks, focusing instead on your ability to make consistent payments.

Is land a good investment in today’s market?

Yes, land continues to be a strong investment. According to the USDA, rural land values have appreciated by an average of 6% annually over the past decade, outperforming many traditional investments.

What makes Florida and California land particularly valuable?

Both states offer unique advantages. Florida land benefits from no state income tax, a growing population, and a favorable climate, while California land values are driven by limited supply, agricultural productivity, and strong economic fundamentals.