4 Red Flags to Avoid When Buying a Plot of Land.
Buying land is usually a sound investment because the land won’t go anywhere and you can improve upon it in the future. Besides the primary rule of location, it is important to learn everything you can about a piece of land before you buy it. Aside from learning all you can on paper, go see the land, and inspect it for yourself. Keep an eye out for these red flags when buying land. You’ll want to avoid these problems!
The Surrounding Area is zoned for Other Use
A land zone is how the local governmental authority determines how a specific portion of land can be developed. Commercial zones are designated for shopping centers and offices and industrial zones are set aside for manufacturing plants and storage facilities. Although the plot of land you purchase could be zoned for residential use, the area around you might be zoned for less than ideal neighbors. It might be empty now, but the municipality might have plans to build a nightclub or federal prison next door. Take a look at the long-term plan for the area and decide if you’re comfortable with the thought of who might move in next door.
Covenants and Deed Restrictions Don’t Sit Right
A deed restriction is essentially a contract stating what you cannot do on your property. While it might seem absurd that what you can do with your private property is restricted, the intentions could range from preserving the historical character of a neighborhood, maintaining the mountain view your neighbors paid a pretty penny for, or to keep the family-friendly nature of the area. If your ideal home includes planting tall trees, working on your boat in the driveway, all behind a tall pink iron fence, you’ll want to check with the county’s records to make sure that you’re not violating the property’s deeds. Typically, deeds can be found in the county courthouse or with the homeowners’ association (if there is one).
Excessive Vacant Lots or Buildings in the Area
Aside from uncertainty about your future area, lots that are sitting vacant are usually not a good sign for your home’s value. The lots you thought were going to be residential zones could also get changed to industrial zones. Unused lots, especially in urban areas, tend to become a home to trash and debris, creating an eyesore and contributing to community blight
The Owner of the Land is Trying to Rush the Deal
Before making any real estate transaction, you need time to reflect on your decision. If the owner of the land seems overly anxious to push the deal through and is not allowing you the requisite time to think it over, then they might be trying to scam you. Although real estate scams are common with homes already built, buying a vacant lot is a bit murkier. Property lines are more difficult to determine. You could believe that you’re buying that idyllic acre for your dream home, but really you’re buying the ten square-foot ditch on the side of the road. Do your research on the property by checking in with a title company so you know exactly what you’re purchasing.
As a buyer you need to know pitfalls to avoid and safeguards to take when purchasing land lest you find yourself deep in endless court battles or having lost your hard-earned money to swindlers or your million shillings investment being demolished because it is built at the wrong place such as a riparian reserve.
