Factors to Consider With a Land Purchase

Posted by EdmontonRealEstate .ca on Wednesday, January 2nd, 2019 at 9:01am.

Tips for Selling or Buying LandTips for Selling or Buying LandReal estate transactions for land are quite different than buying or selling a home. Sellers have unique responsibilities, and buyers need to know what to look for. Instead of assessing an existing home for its condition and ability to meet the buyer's needs, people must discover and decide if the property will be able to sustain their future plans. There are certain aspects that are common to most land purchases. With this information, people will know what they need to focus on for this type of real estate.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Research Government Regulations

Undeveloped land may have specific zoning guidelines that buyers and sellers need to follow. These guidelines dictate the activities that property owners can engage in on the property, as well as the types of buildings they can establish. Home buyers would not want to purchase land that has been slated for commercial or industrial purposes. Zoning can vary based on the neighbourhood. The rules tell property owners where they can place buildings and how much space they can occupy. Prospective home buyers should investigate the property they want to buy to find out how difficult it may be to build the home they have in mind.

Understand Property Details

A single lot of land in an otherwise developed area may be relatively simple for home buyers to ascertain the details. In other cases, it could be more difficult. Buyers and sellers need to understand the boundary lines and control over any features, including trees and waterways. In some cases, these details may be contested by neighbours or local government. Before providing information, sellers may want to confirm that they have accurate data. Home buyers should be prepared to follow up on this data, so that they are absolutely certain they know what is currently available.

Discover Development Plans

In a rural or remote area, home buyers should have a very clear understanding of the development plans. Although plans by private developers or regional governments could change at any time, people need to know what they will have to do in order to build a functioning home. First, they should look at road access, and how it will look year-round. Second, they must ask about access to utility services, including water, sewer, electricity, natural gas, and telecommunications. At first, homeowners may have to develop and use their own private services. Third, buyers should identify the neighbouring lots and consider how the area will look after development is complete.

Obtain an Accurate Appraisal

If home buyers are planning to apply for a mortgage to buy the land, the lender will probably require an appraisal. Appraising land is different from appraising a home. For example, there may be few comparable sales or values for the appraiser to cross-check. Sellers who are unsure of the land's value may want to schedule an appraisal of their own before they list the property. In this case, they should look for a firm that has specific experience in land appraisal.

Buying or selling land in Windermere can be both harder and easier than buying or selling a house. Sellers need to know how they can accurately market the property, and buyers want to be sure they get what they need. By evaluating each of these topics for individual properties, people will be better prepared to complete the transaction successfully.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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