In a previous blog entry, we covered the pros and cons of buying land and building versus buying a house. If you’ve mulled over the advantages and drawbacks and decided you’d be better off buying vacant land, the next step is exploring your options.

There are plenty of buildable lots and vacant land for sale in Charlotte County, Sarasota County and nearby areas in Florida. However, it’s important to do your research and understand vital aspects of the property before you move forward with a purchase.  

As you consider land for sale, don’t forget to account for these essential factors.

1. Type of land (raw, unimproved or improved).

There are three main types of land, and if you’re financing, your loan options and terms can depend on the category you choose, according to Bankrate.

• Raw land is untouched, without any power, sewage systems or roads. If you obtain a loan for this type of land, you’ll likely need to make a higher down payment and accept higher interest rates because of the risks for lenders.
  
• Unimproved land is missing some vital utilities but has basic amenities. This type of land can come with better financing terms than raw property but will still involve a larger down payment and higher interest rates compared to improved land.
  
• Improved land typically comes with the best interest rates and lower down payments due to its partially developed status, pre-existing utilities and access to roads.

2. Size.

The value of land can vary considerably depending on its size, according to the National Association of Realtors (NAR). Smaller plots frequently possess a greater unit value than comparable larger areas of land because of economies of scale. Subsequently, a 100-acre plot might be worth $10,000 per acre, while a 10-acre parcel of land in the same region is valued at $20,000 per acre. Other characteristics that affect land valuation include demand for property in the area and whether the area is rural or urban, according to NAR.

3. Zoning.  

You don’t want to purchase property with the intent of building your dream home only to find out that it’s zoned for agricultural use rather than residential. Bankrate advises researching regulations in the area, visiting the town or city hall, or going to the local zoning authority’s website to check for land use restrictions.

4. Access.

Check whether the property is accessible from public roads. If it isn’t, you might need to establish an easement to access it, as suggested by Bankrate. In real estate, an easement refers to a property right that enables an individual, business or other entity to enter property they don’t legally own for a particular purpose or within specific guidelines, according to Rocket Mortgage. In this case, the easement would allow you to travel across someone else’s property to access your land.   

5. Flood plain status.

If you’re planning on constructing a house, it’s vital to identify flood-prone areas and consider how that will affect your usage of the land, according to the REALTORS Land Institute (RLI). For example, flood plains aren’t usually suitable for conventional septic systems. 

6. Neighboring properties.

Before you decide that a plot of land is perfect and move forward with a purchase, you should visit the tax assessor’s website or otherwise source information on who your neighbors would be and their use of adjacent properties, according to the RLI.

7. Property taxes.

Look up property tax rates before making an offer on land for sale. Bankrate cautions that high taxes might make the lot unaffordable.

8. Property line location.

Prior to purchase, it’s vital to walk the property lines so you know where they are and if any neighbors encroach on the land, according to RLI. You should also have the property professionally surveyed.

9. Utility hook-ups.

Bankrate recommends checking the parcel of land for sewer, electricity and water hook-ups. If there aren’t any, you could end up paying a significant amount for installation.

10. The opinion of a professional appraiser.

It never hurts to get a professional opinion. Talk to your real estate agent to see if they can recommend a professional appraiser to determine the land’s value.

The Avalon Suncoast team can help you find your ideal house, condo, commercial real estate, or land in Southwest Florida. Start today by calling 941-235-7474 or emailing sales@avalonsuncoast.com.