Buying land can be a significant investment and a rewarding venture, but it’s also fraught with potential pitfalls. Real estate expert Wayne Turner has highlighted the top ten mistakes people often make when purchasing land. Understanding these mistakes can help you avoid costly errors and ensure a smoother transaction.
1. Not Walking the Land
Wayne Turner emphasizes the importance of physically walking the land you’re interested in purchasing. He advises doing this in various weather conditions, especially after it rains, to get a true sense of the property’s topography and potential water issues. Walking the boundaries helps you understand the property’s extent and identify any encroachments or unexpected features.
2. Skipping Comparable Sales
Before making an offer, it’s crucial to ensure you’re not overpaying. Turner suggests looking at comparable sales in the area. This can be done by consulting with a real estate agent who can pull recent sales data or by hiring an appraiser. This step helps determine the fair market value of the property.
3. Forgoing a Survey
Turner strongly recommends getting a survey of the property. A survey will outline the exact boundaries and can reveal any potential encroachments or easements that may affect your use of the land. Even if the seller provides a recent survey, it’s wise to walk the property yourself to confirm its accuracy.
4. Ignoring Wetland Status
It’s essential to check whether the land is classified as a wetland. Wayne Turner points out that wetlands can severely restrict how you can use the property. You can check the Federal Emergency Management Agency (FEMA) website for wetland maps and consult local authorities.
5. Overlooking Flood Zones
Similarly, it’s important to know if the property is in a flood zone. Turner suggests getting a flood elevation certificate, which will detail the property’s flood risk. Properties in high-risk flood zones may require costly insurance and may not be suitable for certain types of development.
6. Neglecting Deed Restrictions
Deed restrictions can limit how you use your land. Turner advises checking for any restrictive covenants that might dictate the type of buildings you can erect, the number of animals you can keep, or other usage constraints. This information is typically available at the local Register of Deeds office.
7. Failing to Check Soil Percolation
If the property isn’t connected to a city sewer system, you’ll need to install a septic system. Turner emphasizes the importance of ensuring the land will “perk,” meaning it has the right soil conditions for a septic system. Without this, you might not be able to legally build a residence on the land.
8. Ignoring Water Source Issues
It’s crucial to know whether the property has access to city water or if you’ll need to dig a well. Turner explains that drilling a well can be very expensive, especially if the water table is deep or if there is a lot of rock to drill through. This cost can vary significantly by location.
9. Not Talking to the Neighbors
Talking to the neighbors can provide valuable insights about the property and the local area. Turner suggests asking them about their experiences, any issues they’ve faced, and their general opinion of the neighborhood. Neighbors can often provide information that you won’t find in official documents.
10. Skipping the Title Policy
Lastly, Turner advises never to purchase land without a title policy. A title policy ensures that the property is free from any liens, encumbrances, or other legal issues that could affect your ownership. It’s a one-time fee that provides peace of mind for the entire time you own the property.
Educate Yourself
People in the comments shared their thoughts and experiences: “As a beginner, educate yourself: Learn the basics of investing and the market. There are many resources available online , including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $570k during recessions and inflation, its important to do your own research”
Another commenter added: “We purchased 50 acres of forest land from Weyerhaeuser recently. One thing that was very important to us was owning the mineral rights. Most don’t think of that, but the last thing you want is someone legally coming onto “your” land and digging under your house. If you don’t hold the mineral rights, you don’t truly own the land.”
A Complex Process
Buying land is a complex process that requires careful consideration and due diligence. Wayne Turner’s expert advice highlights the importance of walking the land, understanding its value through comparable sales and surveys, checking for environmental and legal restrictions, and ensuring reliable water and sewage systems. By avoiding these ten common mistakes, you can make a more informed and secure investment in your future property. Taking the time to thoroughly research and verify every aspect of the land will help you avoid costly pitfalls and ensure a smoother, more successful transaction.
Local Zoning Laws
What are your thoughts? How can potential buyers better educate themselves about local zoning laws and restrictions before purchasing land? What are the most common overlooked environmental concerns when buying rural land? How can technology, such as drone surveys and online mapping tools, enhance the land-buying process?
Explore the full insights by viewing the video on Wayne Turner’s YouTube channel here.
