If you consider yourself to be somewhat of a real estate investor or if you have bought real estate before in the past, then you may think you know everything there is to know about the purchasing process. However, when it comes to buying land for sale, there is a lot more to it than most people are aware of; especially if this is the first time that you've bought any land before.
The first thing that you may want to ask yourself when you are buying land is what you plan on using it for. Are you wanting to build on it eventually or do you just want to use it for recreational use? If you want to build on it, then you will want to talk to a land severer about a bunch of things including water rights, how the electrical grid works where you are, and any restrictions that may be on the land. For instance, in some areas the dirt is so hard or full of clay that it's almost impossible to dig a foundation on; these are all things you will want to know before you make an offer on a property.
It Can Be Hard to Qualify For a Loan
When it comes to buying an existing house, it's fairly easy to get a home loan if you meet all of the standards and qualifications. When it comes to buying land though, you may not be able to get a loan because not all banks or credit unions will give people a loan for land. If you do intend to build on the land, you may be more inclined to get a loan from a bank because they know that you are going to be increasing the overall value. Meet with different lenders and see what financial options are available to you before you make an offer on the property.
Ask About Rezoning
Some land parcels are only zoned for recreational use or may have some environmental restrictions on them that will prevent you from being able to build in the future. Even if you don't' see yourself building on the land right now, having the ability to potentially build on it in the future may be worth it to you. Ask your real estate agent to ask about the possibility of having your land parcel rezoned in the future so that you can build on it.
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