In the realm of real estate, purchasing raw land holds great potential for future development and investment. However, it's vital to approach this endeavor with careful consideration. To ensure a wise investment, take into account these five essential criteria:
Location: Unlocking the true value of raw land starts with evaluating its location. Assess the area's suitability for your intended use, taking into account factors such as demand, privacy, and proximity to amenities or highways. Remember, the location is immutable, so choose wisely.
Investment Potential: Gauge the property's long-term potential by examining zoning and usage limits. Consider the costs associated with preparing the land for use, such as amenities and access roads. Remember, a seemingly affordable property may not yield a great return if additional expenses outweigh its value.
Ownership History: Uncover the insights of former landowners. Understand why they are selling and inquire about any challenges they faced, such as flooding or poor soil conditions. Learning from their experiences can provide valuable information for your decision-making process.
Permits and Requirements: Familiarize yourself with the permits necessary for future improvements and determine the process for obtaining them. Take into account the associated costs, as well as any restrictions or rules that may apply. Building permits, environmental licenses, zoning permits, and water permits are some examples of what may be required.
Environmental Concerns: Prioritize environmental testing to identify any potential issues such as contaminated soil or polluted water sources. It's prudent to include an environmental contingency in your offer to protect your investment and allow time for thorough evaluations.
When embarking on the purchase of raw land, it's crucial to seek guidance from real estate professionals who can safeguard your interests and help you navigate these intricate variables. For expert assistance in land investments, turn to Lindsey Stapay of Westward Broker. Learn more about Lindsey's services at westwardbroker.com or reach out directly at 303-641-3341.
By thoroughly considering these five criteria and enlisting the expertise of industry professionals, you can make an informed decision and set the stage for a successful raw land investment.