Buying land should be a moment to celebrate. And when you go through reputable companies like (ahem) LandCentral, the process is often smooth and painless. But that doesn’t mean you should buy land with your eyes closed. Since we’re experts on the matter, there’s definitely a few things we can teach you. So check out LandCentral’s 4 Mistakes to Avoid When Buying Raw Land:
Not Asking the Right Questions
Not all land is created equal. From location to soil, it’s important to know what you’re getting. That’s why we recommend potential land owners ask themselves the following questions (and make sure they get the answers they’re looking for):
- What is the Zoning? – Zoning can make or break the potential uses for your future land. Residential Zoning means you can build a home and live happily ever after, Commercial Zoning does not. Some zoning have strict guidelines about the type of dwelling or livestock or crops you can grow, and some zoning may even include an easement that you weren’t aware of. Zoning is the first question you should ask when considering your land purchase.
- Where is it located? – This may seem like a no brainer, but when it comes to land, it’s all about location, location, location. Is it in the middle of nowhere (ideal if you’re planning an off-grid homestead)? Or is it next to a major city (ideal if you’re looking for convenience)? Before you buy, map out your land in comparison to nearby amenities, roads, utilities, etc.
- Is it usable? – This is a big one, because while all land can be beautiful, some land is simply not usable in the way you intend. The terrain may be too steep to build, the soil to rocky to grow crops, or it may be too forested to clear properly. Make sure the land you have in sight is usable for your vision.
Not Getting a Warranty Deed
We know what you’re thinking: what on earth is a Warranty Deed and why do I need one? Basically, a Warranty Deed is the document used to transfer land ownership from owner to buyer. When your land is fully paid off, you (the buyer) must make sure you get full ownership of that land through your Warranty Deed. Many buyers on payment plans forget to request this paper once their land is paid in full. Don’t make this mistake.
Psst: We automatically give ALL our buyers their Warranty Deed when their land is paid off, no request necessary.
Agreeing to a Balloon Payment (or Other Payment Penalty)
This is a big mistakes buyers end up kicking themselves for later. A Balloon Payment requires the buyer to pay off their loan early. This may seem like a good idea when you’ve got stars in your eyes for your newly purchased land, but trust us, reaching that deadline early can be real daunting. So, take your time and don’t agree to any sort of Balloon Payment.
Similarly, just say no to pre-payment penalties. This is the opposite of a Balloon Payment in the way that you actually accrue a penalty if you pay the land off early or refinance or sell the land before it’s paid off. It’s basically a trap.
Psst: Here at LandCentral, we don’t use any of those dirty little finance tricks. No Balloon Payments, no pre-payment penalties, no hidden fees. Just straight financing to get you the land you want.
Giving Up When Your Loan is Rejected
Banks. Need we say more? They’re not there to help you achieve your dream of owning your own piece of America. And borrowing from a bank is not only a frustrating process, it can be quite extensive, and it doesn’t always lean in your favor. Some people even give up, believing that they will never have enough money to be land owners. That’s where we come in. We offer no-question financing for everyone! Sound too good to be true? Check out this comparison between LandCentral Financing and Bank Financing. Just call us the Fairy Godmother of land.
So there you have it. 4 Mistakes to Avoid When Buying Raw Land. And now that you’ve seen them, we’re sure you won’t make any of them. In fact, you’re probably ready to go all in with LandCentral. Because helping you realize your dreams is kind of our thing.