Let’s invest in land! But wait, it’s not so simple; there are many factors to consider before you sign on the dotted line. It is well worth considering consulting with professionals to ensure you’re on the right track and the right piece of land when purchasing.
So read on as we explore five red flags to look for when buying land for investment in All.
Utilities and Access
A huge red flag to look for when buying land for investment in All is that there is access to the land by road and that all required utilities will have the ability to provide service to the location, which isn’t always a given. This information is better to know before buying your land and feeling stuck in a bad situation.
You may need to work with neighbors to provide you with entry to your land, which could end up being costly if you’ve already purchased, you’re at the mercy of a stranger. That’s what people refer to as an easement. You may have an easement along a boundary of your new property, and that’s ok. Often they’re in place to allow utilities companies and the County access for maintenance and install.
You can work with your neighbors to have them sign an amendment to a deed granting you an easement.
If your property doesn’t have utilities in place, that’s ok. It’s not the end of the world. In many places in Colorado you can drop a well or install a septic. Or you can have water delivered or hauled it in. If you’re unsure about utilities, no worries. There are ways for you to figure it out on your own.
Speaking of neighbors, another red flag to look for when buying land for investment in All is an obvious use of the property by your neighbors, which may give them rights to the property in the event the use of any part of the land has been for a prolonged period.
Let’s say for example that your neighbor has a fence around their property, and it kind of looks like that fence is over their property line, and is actually built on your property. Depending how long that fence has been there, and if the previous owner knew about it, that couple of feet that they’ve built onto your property might actually become part of their property.
I know that doesn’t sound right. Unfortunately, if the previous owner knew about the fence and didn’t bother to say anything, and if the fence has been there for a while, you might have a tough go getting it removed or modified.
Unpermitted use of the land is one of the reasons we suggest that you or a personal representative always physically observe any real estate before purchasing.
You should also pay attention to the smells coming from nearby properties or anything else that could inhibit your full use and enjoyment of the land in the future. You’ll also want to ensure that undeveloped land hasn’t become a local dumpsite for trash.
Another aspect of the neighboring homeowners to consider is their attitude towards your proposed land use, especially if you’ll be seeking rezoning and there could be trouble.
One of the big red flags to look for when buying land for investment in All is the zoning and how it could interfere with your intended purpose for the land.
Each County (and sometimes municipality) will have it’s own Zoning Ordinance. You can try finding the ordinance in the municode library. You can also try finding the ordinance on the County’s website.
In addition, there are many agencies involved with land and various laws governing land use at federal, state, and local levels. Other concerns are regarding environmental impacts and protected species; for example, if you’ve already done the deal, you’ll own land that you cannot use as you wish.
Another red flag to look for when buying land for investment in All is an oddly shaped property, the very boundary of which could inhibit your intended use of the property. Like if you’re trying to get a square through a round hole, not going to work.
In a lot of areas of Colorado, like Forbes Park for example, property boundaries will often be marked with red flags. You should know that these aren’t always professionally done. They might show a rough estimation, but they might not be 100% accurate.
Another red flag to look for when buying land for investment in All is someone rushing you to buy when you’re unsure about land values. It isn’t easy to determine market value, unlike developed real estate (houses, office buildings, etc.), where you can easily compare.
An appraisal of the land is a strong backup for the asking price. You should be aware that many experienced professional land investors, like our team here at Compass Land USA, can provide a general estimate within about 5% of the value off the top of their head.
Don’t risk it! Let the pros at Compass Land USA help you spot the red flags when you’re buying land for investment in All.
Compass Land USA makes the process easy, our team will help you step by step, so you understand the process and feel great about the deal long after closing. And Compass Land USA has a steady inventory of the best land available for investment in All if you don’t already have your land in sight!
Let us help you find the best fit for your Colorado land investment goals. Contact Compass Land USA today at (313) 349-0434 – call or text us! 😊
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