Buying and Selling Land - Step-By-Step
Location Specifics
The most critical question is ofen if I buy the land can I develop the land? Can I build on it? Can I change the usage of the land. But sometimes the question is not can I build on it but can I drill into it or dig into it. Commodities such as oil, coal and valuable stones such as diamonds are found in all corners of the globe and internationally active corporations seek out land parcels with high potential year round -- it is these raw undeveloped locations where large ROI's can be found.
Know what type of land you are selling first is often the best way to not regret letting go of a parcel of land cheap only to find that underneath the surface lies a fortune to be made. If you are seeking to build a residential development or an industrial plant you will need to have access to services such as water and power -- how far away are these and if not local how much extra is it going to cost to get these services supplied and connected?
Buying a parcel of land can be a serious investment and it’s always a good idea to consult a financial advisor or accountant prior to making any investment. Determine what your goals are for purchasing. The following are some of the other factors to consider when evaluating parcels of land.
Does the land need to be near to schools, shops, cinemas and with easy highway access already in place as what you might be seeking to develop might rely on outside conditions for your venture to be successfull Land that is already serviced by essential supplies and is connected to the world at large will cost more than land in a difficult place to reach.
If you are a developer it is essential to consider what the outsource costs will be - consider what a building contractor will cost to develop on a plot of land far away from the main road - the development may well be upscale and require a remote location to enable the higher unit costs you would like to charge but the upfront development costs may well be too high.
Research the soil quality and topography. Damp, moist soil can add significantly to your building costs and building on hills or steep slopes can be much more expensive.
It is highly advisable to research road access into the location you are considering as if the land isn’t accessible via a public road, you and your neighbors will have to maintain it. Consider the likelihood of floods, heavy rain, or snow that could limit road access in the future.
Once you’ve determined that you can build or re zone the land to suit your needs the local zoning officers will dictate what you can and can’t build on the land and what usages you may act on it. If the land borders water it is subject to environmental regulations, both may hinder your building plans or redelopment plans.
Also research the county’s long-range plans. Find out where the new businesses, parks, roads, or schools will be for that particular country or county / state. If the location is planning a six-lane highway next to the land in consideration this could increase or decrease the value dependent on what yiu intend doing with it. Having a highway near an upscale exclusive development will most certainly bring into question sale values while having an excellent highway to remove and transport raw materials is assuredly a bonus.
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