Depending on whether you are looking to purchase land to build on, hunt, or use as recreational property with the family, there are some things you should consider before buying.

Know What You Are Buying

Know exactly the boundaries of what you are going to be purchasing. Make sure that there is a current survey on file for the property. Take the time to gain a strong understanding of what you are buying. If possible, ask the seller to walk you around and flag the corners to clearly mark the property lines.

Depending on whether you are looking to build on the property or use it strictly as a recreational property, you will want to understand what the consistency of the land is. When it comes to zoning, this can dictate what can and cannot be done with the property. You can start this research by going to your local assessor’s office or looking up this information online. The local assessor can also tell you about the property taxes, in addition to the zoning of the property.

Plan Ahead for Building

If you are planning to build on the property, you will want to make sure the property is able to be developed. In many cases, this means attaining a flood certificate, making sure the land is zoned correctly, and determining if sewer, water, and electrical hook ups are attainable.

You will also need to make sure the property has passed a perc test. Ask the property sellers, or seller’s agent if one has already been done. If not, you may want to consider adding a perc test as a contingency to your offer, especially if your sole purpose for purchasing the property is to build on it.  

Additionally, you’ll want to ensure there is legal access to your property. One of the major issues that often is discovered when the title search comes back are mysterious access issues. All easements must be legally documented and recorded with a title company or register of deeds before or at closing. The title company, real estate agent, or lawyer will be able to assist you with executing this. This is important because this will legally give you access to your property. In most cases, your lender cannot give you a loan if you do not have legal access to your property.

Know Your Surroundings and the Future Plans

Depending on whether you will be using this property for hunting or to build your new home, you will want to know who your neighbors are, and what surrounds your property. It is helpful to educate yourself on the future plans for the properties surrounding yours. This could potentially change the way you want to use your land and could impact the value of your property. Depending on your own plans for your land, these findings could encourage you or deter you. In both cases doing the research before you buy will help you be informed.

Prepare Your Finances

Before you approach the seller with a possible price to purchase the property, it is important to know what you can afford. Give your local GreenStone loan officer a call and let them know what type of property you are looking to purchase, and they will provide you with an application package to secure pre-approval. You can use this pre-approval to gain leverage with the sellers. If you have proof that you can secure a loan, a seller is often more likely to come to an agreed upon price.

Draft an Offer to Purchase

When you have gained a good understanding of the property that you are purchasing, work with the seller or an agent to draft an offer to purchase. You can obtain a copy of an offer to purchase on several websites. If you are comfortable drafting one between the two parties, you can do that. If not, call a local realtor, attorney or title company to help you put your offer in writing. Either way, it is important to put the agreement in writing to avoid any issues that could delay closing.

The best advice when buying recreational, hunting, or land to build on is to work with a lender that is an expert with these types of properties. They can help you through the process in addition to fitting you with the right product and term for your loan. To speak with one of GreenStone’s financial services officer about your dream property and how you can finance it, visit a GreenStone branch near you.

Happy land shopping!