Common Mistakes When Buying Residential Land
Bypassing a Land Expert
It might seem economical to rely on neighbor Bob who's previously bought residential land. But remember, experience and expertise matter. Choosing not to consult with a land professional could lead to more costs later on. Land specialists, like ALCs, have extensive education and deep industry knowledge, helping you sidestep potential pitfalls.
Not Visiting the Property in Person
While Google Earth provides a valuable overview of properties and their surroundings, it doesn't substitute for a physical visit. Being on the property allows you and your agent to identify potential issues that digital tools might miss. A firsthand look ensures a thorough assessment and reduces risks.
Misunderstanding the Term 'Buildable'
The definition of 'buildable' can vary by region. In some places, it merely indicates that local regulations permit construction on the land, without regard to its suitability. In others, it means the land's features make it ideal for building. This is akin to regional variances like how 'sweet tea' is prepared differently in the South compared to the North.
Grasping Essential Land Terminology
Navigating the world of land buying requires an understanding of its unique vocabulary. Being unfamiliar can lead to unsuitable purchases. Key terms to familiarize yourself with include:
HOA/POA: Associations dedicated to maintaining shared property areas and ensuring property value.
Restricted subdivision: A zone with deed restrictions set by its original developer to maintain property values. Compliance is mandatory for homeowners.
Unrestricted subdivision: These zones lack POA or HOA-enforced restrictions but may still be subject to local or state deeds.
Overlooking Essential Evaluations
While it might seem costly upfront, conducting thorough assessments is crucial before buying land. These evaluations prevent potential future issues, such as environmental concerns or unsuitable soil types. Vital checks to consider include:
Title searches
Soil analyses
Land surveys
Environmental assessments
Appraisals
Overlooking Hidden Costs
Don't be misled by the initial price; land purchases often come with hidden fees. These can involve surveys, municipal permits, health approvals, and site preparations like clearing, grading, and excavating. Various governmental bodies might also be involved, each bringing its own set of fees. The entire process, from buying a plot to obtaining an occupancy certificate, can span over a year.
To sidestep these pitfalls, stay updated about the land industry and consult a land specialist. Being informed is your best defense against common land-buying mistakes.
Contact me for more information:
Emily@EmilyLinHC.com | (310) 751-4137
