Linsey Taylor, Fathom Realty REALTOR® in Texas, shares with her clients how to buy three different types of land.
Disclaimer: Linsey Taylor is an agent in Northern Texas. Be sure to check with your state and local regulations as different laws may apply.
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Read the video transcript here:
Hi! My name is Linsey Taylor, and I'm here to talk to you today about how to buy land.
Have you been dreaming of buying land and getting out to the country? You've heard that land is a great investment! And it is! After all, “They're not making anymore land”!
So now what? How do you go about finding a good piece of land?
In this video, we will discuss 3 basics types of land. Residential, agricultural and bare Land as an investment. I will tell you what to look for, and what you need to consider before making that purchase.
So the first thing thing you need to know, is the intended use of the land you wish to purchase. What are you planning to do with it? Will you build a home? Or will you be hunting or raising cattle? Establishing what you want to do with the land, will quickly narrow your search and help you find the property best suited for that use.
- Building a home. If you are looking to build a home, there are many things to consider. First, consider the location of the property. Is it in a residential, commercial or an un-zoned area? In many cases, you can look around you for the answers to these questions. But your city or county office can also help you determine what zoning laws apply to the land you are looking at. Also, think about how far away you would like to be from work, schools and shopping. Next, I want you to consider what is over head and what is below your feet. Are there power lines that could possibly interfere with building? What about gas lines in the ground? Did you know most gas line companies require buildings to be a minimum of 60ft away from those lines? Now that you have “looked” at the land, lets talk about the utilities that you will need in order to have a functioning home. First item on the list is WATER. Some counties have Municipal or coop water lines that run throughout. These are water lines that are in place under ground along county roads and highways. If this type of service is available, you simply need to have a water meter installed, and then your good to go. If there is no water currently available, then you will need to consider the cost of having a water well drilled. This is a much more costly option, but necessary in many counties that do not have water lines already in place. Next is ELECTRICITY. I would first contact the local City hall office, and ask them what electric companies the residents of that area use. Then, contact the electric company and ask them what the cost will be to get electricity on to that property. Finally, the all important SEPTIC system. If your property is located outside of city limits, you will most definitely need a septic system installed. There are many different types of systems available. Your builder will be able to help you choose the right system for you. But, a little research on your part is always a good idea as well.
- Agricultural. If building isn't for you, perhaps you are looking for land for agricultural use. If you plan to raise cattle, horses or other livestock, you will want to look for key elements needed to be successful. The availability of water is a must whether it is in the form of a tank or pond or by well. Be sure to pay special attention to what is growing out of the ground . Coastal grass is great for feeding and allows livestock to graze. And live oak trees are great for shade and cover from the unpredictable Texas weather. Before purchasing, research federal and local guidelines on grazing and number of animals/per acre allowed. You will also want to do your due diligence when it comes to researching agricultural tax exemptions. As those exemptions can take a big load off of your pocketbook.
- Investment. Let's not forget simply purchasing land as an investment. Land is a long-term, tangible asset that doesn't wear out, doesn't depreciate, and nothing can be broken, stolen or destroyed. Can you think of an easier investment? So one thing you need to do is be sure to ask the seller for a survey. A survey will identify property boundaries land size and easements. Another key component to buying land as an investment, is reviewing a market analysis from your Realtor. A comparative market analysis or CMA will show you what other properties in the area are selling for. And this will help assure you that you are paying the right price for your land. Along with that CMA, request an area graph analysis. This will tell you how land has either gone up in value or is currently decreasing in value.
Thank you for stopping by my guide on how to buy land. Be sure to visit my YouTube channel for more Real Estate guides and how to's. I'm Linsey Taylor, your real estate agent with a heart. Bye for now!
If you would like to contact Linsey, email email@example.com, or call (940) 399-9743.