(10 MISTAKES) When Buying Land...

Introduction

Buying land can be a rewarding investment, but it often comes with potential pitfalls that can lead to financial loss and stress. In this tutorial, we will explore the ten biggest mistakes people make when purchasing land, as shared by Wayne Turner, a seasoned real estate expert. By following these steps, you can make informed decisions and avoid costly errors.

Step 1: Walk the Land

• Visit the property in various weather conditions, including after rain, to assess drainage and land features.
• Walk the boundaries to understand the property limits.
• Check for any encroachments or features not owned by the seller, such as fences or structures.

Step 2: Research Comparable Sales

• Analyze recent sales of similar properties to determine fair pricing.
• You can either:
  • Consult a real estate agent for a comparative market analysis.
  • Hire an appraiser, which typically costs $300 to $400, especially if financing through a bank.

Step 3: Get a Survey

• Always obtain a survey to clearly define property boundaries.
• If the seller has a recent survey, review it, but ensure you walk the land yourself.
• Surveys can range from $600 to several thousand dollars depending on property size and terrain.

Step 4: Check for Wetlands

• Research whether the land is classified as wetland.
• Use FEMA's resources to identify wetland areas and potential flood risks.

Step 5: Assess Flood Zone Risks

• Verify if the property is located in a flood zone.
• Obtain a flood elevation certificate to understand flood risk levels (A, B, C, X):
  • A is the highest risk, while X is the lowest.

Step 6: Understand Deed Restrictions

• Check for any deed restrictions that may limit what you can build or use the land for.
• Obtain a copy of the deed restrictions from the local Register of Deeds office.

Step 7: Determine Soil Perk Test Results

• Find out if the land will perk, which is essential for septic system installation.
• If the land fails to perk, it may not be suitable for residential use.

Step 8: Investigate Water Access

• Confirm if the property has access to city water or requires a well.
• Consider the costs associated with drilling a well, especially if the area has rocky soil.

Step 9: Talk to Neighbors

• Engage with neighbors to gather insights about the property and the area.
• Ask them about their experiences and any potential issues with the land.

Step 10: Secure a Title Policy

• Always purchase a title policy to protect yourself from any claims or encumbrances against the property.
• The title policy provides assurance that the property is free of liens and claims, covering you for as long as you own it.

Conclusion

By following these ten steps, you can significantly reduce the risk of making mistakes when purchasing land. Ensure you conduct thorough research, engage professionals where necessary, and communicate with neighbors to gain valuable insights. With this knowledge, you're better equipped to make a sound investment in real estate. Consider subscribing to Wayne Turner’s channel for more valuable real estate insights and tips.