Perhaps you’ve found a piece of land you are interested in. If you haven’t looked into land before, you might not know what type of questions to ask. Here are some good questions to ask before buying land.
Last week we went into detail on how to search for land. We also talked about how to narrow your search by making a list of what you really want.
Our Story
Over the years as my husband and I looked for land I continued to learn something new. Each time I asked for more information on a piece of land, I often ended up with more questions.
My first inquiry on a piece of land was very vague, just asking for more information on the property. However, once we got a little bit of information, I learned something new about land that I didn’t know before.
Turns out you can have things called drainage easements around property. That led to me asking about additional easements. Asking about the other easements was how I learned there was a huge gas main running through that piece of land.
That was the reason the price was so low on the property.
The next time I went to inquire about land, I already had a small set of questions. However, the next property had wetlands on it. Thus, I learned a ton more about wetlands and how it impacts where you can build.
The list goes on.
Below is a list of questions that I have found helpful to ask before buying land.
List of Questions to Ask Before Buying Land
If you’ve not looked at land before, you might not know what kind of things to look out for. One thing to keep in mind is that if something is listed for a low price in comparison to other parcels in the area, there is a reason why.
Here is a list of questions that I’ve asked before buying land that we’ve found helpful. The questions can help you determine whether to purchase the land.
Plat Map
Ask to see the full plat with all the markings, if it is available. The plat can give you all sorts of information about the land you are looking at.
Plat maps give the dimensions of the lot. They typically also provide information such as the slope of the land, easements, and other significant markings on the land.
Utilities
Ask about utilities, including electric, gas, water, and cable. You’ll want to know whether there is a hookup at the lot line or how far away the hookup is.
If there isn’t a hookup at the lot line, you will have to get it extended to reach the land. That can be extremely costly. If you have to do this, you would work with the utility company to make it happen.
For wells, you’ll want to ask if it can be a private well or if it has to be shared. Some subdivisions require you to have a shared well with one neighbor or all the neighbors.
Soil Testing / Perc Testing
Ask if the soil has been tested and if there has been a perc test done. Some types of soil are difficult to build on and require additional actions to build a house on.
Other types of soil are not suitable for wells or septic. That also has to be considered if you need either of those.
Easements
You’ll want to ask about any easements that the land might have on it. This is where I’ve found some interesting things on various pieces of land around where we live.
One lot that we were interested in was very underpriced in comparison to everything else I had been seeing. When we drove by it was a great-looking piece of land, so we asked for more information on it.
After a few emails back and forth, I finally found out the reason for the low price. There was an easement on one end of the lot relating to a massive gas main that was going through the yard.
Honestly, it wasn’t the easement that bothered me, it was having that huge gas main running underneath the ground. We decided to pass on that lot and a week later there was a huge gas explosion in a city a few hours away from where we live.
I have no regrets about passing on that lot.
There are tons of other easements you might run into, however. I’ve found drainage easements, electrical easements, gas main easements, conservation easements, trail easements, and easements relating to neighbors’ use of the property.
You’ll have to assess each of these on your own to determine if they are a make or break for you in buying a lot.
Street Assessments
Sometimes when you look at a lot, there isn’t a street in yet and it is just gravel or a dirt road. You’ll want to inquire as to whether the developer will be paying for the street improvements or if you will be paying for that.
When we bought our current house, there was just a gravel street. We were told we’d have to pay for the street and sidewalk when it went it, but it would be a while before that happened.
We were unpleasantly surprised when about 6 months later they started mapping out the street and we got our estimated bill. Turns out since we had a corner lot, we had to pay over double the amount of other people because we had more frontage, even though we never drove or used part of the road that was on one side of our house.
It’s just something to consider. Every city and municipality has different ways in which they assess their residents for the street improvements.
Impact Fees / Other Assessments
Sometimes when you first build a house the municipality will charge you an impact fee or other assessments. These can relate to things such as upkeeping parks in the area or just for hooking up to utilities for the first time.
Again, depending on the area, these fees can be quite pricy, so it is worthwhile to ask the realtor if they know about them.
If they aren’t sure, you can always call the municipality the land is in to find out more.
HOA Fees
Ask whether there are any HOA fees associated with the land. Depending on the type of area you are moving to, there could be joint areas or things that the neighborhood requires HOA fees for.
You’ll want to take those into account as to whether you can continue to afford those fees on a regular basis once you build on the land.
Outlots
Some subdivisions have outlots that every main lot within the area owns a part of. You’ll want to ask how that works.
Some subdivisions have an HOA agreement and fees to maintain the outlots. Others have easements and operating/maintenance agreements about the outlots and how they work.
Sometimes the outlots are partially owned by everyone in the subdivision and then once it is fully built up, the outlot ownership is transferred to the municipality who takes care of it afterward.
Zoning
You’ll want to verify what the land is zoned for to make sure you can use it for the purpose you’d like. Most of what I’ve found is land that is being sold in subdivisions is zoned as agricultural, forestry, or residential.
However, you’ll want to make sure that it isn’t by chance zoned commercial or industrial.
Permits
Ask if there are any special permits that will be required to build on the land. Certain areas have special requirements that will require a special permit to build or construct on the land.
One lot that we looked at required a shoreline permit because it was within so many feet of a stream.
Wetlands
If there isn’t a full plat map, you’ll want to ask if the realtor knows of any wetlands on the property. If they don’t have either a plat map or know of wetlands, you may want to make the offer contingent upon a survey of the land.
Some lots will have lots of wetland areas on them, which have restrictions on where you can build. Sometimes you can fill in part of the wetland and get exceptions made, but those take extra steps to do so.
Covenants
If the land you are looking at is part of a subdivision or development, you’ll want to see if there are covenants involved.
Covenants include restrictions and requirements for building on the land, so you’ll want to read those over to make sure you are comfortable with all of them.
Most frequently covenants include things such as the size of the house required to be built. Sometimes there are also restrictions on colors of houses and other architectural features.
Builder Requirements
Sometimes if builders go in on subdivisions together, there is a requirement to use a certain set of builders to construct your house.
Ask if there are any requirements as to who you use to build the house.
Timeline
Ask if there is a timeline for how long you have before you need to build a house. Some developers want everyone to build within a set amount of time.
Other developers don’t care, so you can own the property for years without building. Either way, it is good to know, so you can compare it to your own timeline.
Other Development
If there is space around where you are looking to buy that isn’t being developed, ask if they know what is happening to it.
If there is a field you really like behind the lot and plans are to make it into a subdivision or develop a business, it might impact your decision.
Next Steps
Now that you have a good basis for questions to ask before buying land, you will feel more comfortable reaching out to a realtor to learn more.
If you have your own realtor, reach out to them first with the questions and they will get the answers for you.
Alternatively, reach out to the realtor who has the property listed if you don’t have a realtor. They will have most of the answers to your questions.
If they don’t have the answer, they may be able to reach out and get more details. Sometimes, you may need to do some research on your own. You probably even have more questions to ask before buying land that you came up with since reading this. Share them below if you do!
Good luck with your land search!
If you want to learn more, check back in next week for more information! We’ll be talking about financing land purchases and other items to consider before making an offer.
