 | Robert Cobb is Managing Broker/Owner of CENTURY 21 Cobb Realty in Pittsburg, KS. He is a life-long resident of Pittsburg and a PSU graduate with a BS in Business Administration. He has been in the real estate field for 23 years. He is currently a KAR Director and the President of the Pittsburg Board of Realtors. |
Real Estate
2011-11-21 10:12:46
What to consider when buying land
Q: I am considering buying land as an investment. What things should I consider as I look at my options?
A: While buying property is a great option for many people, signing on the dotted line before you do your homework can result in owning property that you do not enjoy and property that is difficult to sell at a price that makes it worthwhile for you. However, with a little investigation, you can find the perfect plot of land that will be a pleasure to own.
Purpose
One of the first things you will want to consider is what type of land will fit your purposes, whether it is commercial, residential, or agricultural. You will want to consider if it is hunting land or whether the ground is farmable. Wooded versus non-wooded may also be a preference in your case.
Location
You know the old adage, “Location, location, location.” It may seem over used but location is one of your top considerations. For commercial properties, you will want to consider its proximity to highways, if the land is accessible, whether or not you can build on the land, and any environmental laws might affect or hinder building. Residential properties have similar concerns and include issues such as drainage issues, wells and water rights.
Raw Land Vs Vacant Property
Particularly in a rural setting, it is also important to know the difference between raw versus vacant property. Vacant property is likely to have access to all or most utility services. Raw land, while holding potential involves additional costs in developing the land into a ready to build site. Just a few of the additional expenses could include: property surveys, environmental impact studies, soil tests, old grave location, and Local, State, and Federal permits, regulations and requirements.
Future Appeal
As with any other investment, you must consider the appeal of your property to the next buyer. A well-chosen location, with broad appeal will help ensure that you reap the financial benefits when it’s time to write the next exciting chapter in the story of your life as a landowner.
Finally, enlisting the help of a real estate professional to work for you can assure a smooth and successful transaction.
