| So, you are thinking about making a land purchase? | | | | that you would like to have the system placed. The |
| Great! Land can often been a good investment, | | | | health department will let you know what type of a |
| depending on the location and/or size of the | | | | system can be placed on the property, if any.If the |
| property.There are some important things to | | | | property does not perk or is not suitable for a |
| consider when you are buying land.Ask yourself some | | | | modified (engineered) septic system, this will greatly |
| of these questions and do your homework:Is the | | | | hurt the value of the property and you many not be |
| property in a good location? What is the | | | | able to ever build on the property. In some cases, an |
| neighborhood like?This is important for investment | | | | in ground septic tank will be allowed without a drain |
| reasons and future resale. A desirable location might | | | | field, but this allowance will vary, depending on the |
| depend upon the condition of the neighborhood or | | | | rules in each state and/or county. In areas with a lot |
| distance from shopping or recreational activities. If | | | | of rock or clay, these systems are common.What do |
| the neighborhood is not desirable, then that may | | | | the water well depths run in that area?If you are |
| affect the future value of the property.Does land | | | | ever planning on having a well drilled on a property, it |
| value adequately appreciate in this area?This also | | | | might be a good idea to find out what the average |
| relates to the location. Some areas appreciate a lot | | | | well depths are in the area. An extremely deep well |
| faster than others. For example, waterfront property | | | | can be very expensive to have drilled.Has the |
| may appreciate at a higher rate than off water | | | | property been surveyed?It's always a good idea to |
| property. Also, land in more populated areas with | | | | have a property surveyed before or after purchase. |
| good job opportunities, will hold and appreciate in | | | | This is especially true if you plan to build near a |
| value faster than property in poorer regions of the | | | | property line in the future.Often an old fence line |
| country.Is there a home owners association? If yes, | | | | might be assumed as the property line, when in fact |
| what are the dues/fees?Home owner associations | | | | it could be a few to several feet on one side or the |
| can often be a good thing, but at a cost. Association | | | | other, of that fence line. The best way to determine |
| fees can range from as little at $20 per year to | | | | the actual property line, is to hire a professional |
| $1000's per year, depending on the type of HOA it is. | | | | surveyor to mark those lines for you. Depending on |
| This is something to take into consideration if you | | | | your region, this can cost from several hundred |
| are buying property for investment reasons. Will the | | | | dollars to thousands of dollars.A Special Note About |
| rate of appreciation offset the cost of these fees | | | | Buying Tax Sale PropertyI wanted to bring this up |
| over the course of ownership?What are the land use | | | | because I see this happen all of the time in one of |
| restrictions?These restrictions can be county, | | | | my neighborhoods here, in Gladwin Michigan.If you |
| township, agricultural, commercial or association | | | | decide to purchase property from a county tax sale, |
| restrictions. For example, some areas may not allow | | | | you will want to do your homework first before |
| mobile homes to be placed on property. This is a | | | | making a bid on that bargain property. "Buyer |
| common restriction throughout many areas. Other | | | | Beware!" In many cases, when you purchase a |
| areas might restrict the size or color of your home. | | | | property at a tax sale, the title may not be clear.I |
| Restrictions will vary, depending on the location of | | | | see this problem over and over again. People will go |
| the property.If it's a larger parcel of land, can it be | | | | to these tax sales thinking that they can and pick up |
| split?If you are buying a larger parcel of land for | | | | multiple lots for a couple hundred bucks and instantly |
| investment purposes, you may want make sure that | | | | turn around and sell them for 1000's of dollars more. |
| some splits are available for the property. Without | | | | Then when they try to list their lots with a real |
| split rights, they property can only remain as one | | | | estate company or go to a title company to have |
| parcel and not sold into smaller pieces. Laws very on | | | | their lots insured at a sale, the title company won't |
| split rights per state and often per township, | | | | insure them. It can often be expensive to file for a |
| depending on the local zoning.Does the property | | | | quiet title. This will depend on how much research has |
| come with the mineral rights? (This applies to larger | | | | to be done to quiet these titles.An educated buyer |
| parcels).With larger parcels of land, this might be an | | | | will not want to buy a property without a warranty |
| important issue depending on the area. Often, smaller | | | | deed and title insurance. Most title insurance |
| parcels such as 10 or 20 acres, may no longer have | | | | companies will not insure a property that were |
| the mineral rights. On occasion these smaller pieces of | | | | bought at a tax sale unless steps have been taken |
| acreage will still have those rights, but it's rare. With | | | | to have the title cleared.What is even worse, is |
| parcels over 30 or 40 acres, there is a much greater | | | | sometimes these lots are located in a home owners |
| chance that the mineral rights still remain. Sometimes | | | | association where the dues are hundreds of dollars |
| the only way to find out if the property still retains all | | | | per year per lot. The new property owners find that |
| mineral rights, is to have a mineral search done. This | | | | on top of paying to have the titles cleared, they are |
| can be done through title insurance companies | | | | also having to pay hundreds to thousands of dollars in |
| experienced in doing these types of searches. | | | | HOA dues while they sit on these lots waiting for |
| Sometimes this can be very costly and require a lot | | | | them to get clear titles and then wait for them to |
| of research. It that case, it might not be cost | | | | sell. It can often be a time consuming and expensive, |
| effective to have a search done.If a property still has | | | | especially if the lots are only worth a few thousand |
| the mineral rights intact but the seller won't give | | | | dollars each. Sometimes the seller is lucky to walk |
| them to a purchaser, I would questions the reasons | | | | away after a sale, just breaking even.In many |
| why they would want to keep them. In many cases, | | | | instances, I have seen these owners give up on |
| a buyer will back out of a purchase simply because | | | | selling these lots and just let them go back to the |
| the seller would not convey those rights will the | | | | county by not paying their taxes. Some of these tax |
| land.If the property does not come with the mineral | | | | lots have gone through this cycle many times, simply |
| rights, is there much activity in the area with gas or | | | | because these owners didn't know what they were |
| oil wells?If the property is located in a area with little | | | | getting into when they bough these lots at a tax |
| or no activity, the risk will probably be minimal. It will | | | | sale.So do your research before you buy. You'll be |
| be up to you to decide whether you are comfortable | | | | thankful you did.Copyright 2006 Ivie Baker. You may |
| purchasing a property without these rights. In most | | | | republish this article in its entirety, only if you leave |
| cases, a buyer is safe from having any wells placed | | | | the author's note & website hyperlinks intact.Ivie |
| on their property, but there is never any guarantee.If | | | | Baker specializes in waterfront and recreational |
| the property doesn't have access to public sewer, | | | | properties. She has been with Kehoe Realty Inc since |
| does it perk?First of all, what is a perk test? A perk | | | | April of 1999 and is an Accredited Buyer |
| test is usually done by the local health department to | | | | Representative (ABR). This designation is a |
| determine whether an in ground sewage system can | | | | benchmark of excellence in buyer representation. She |
| be placed on the property. This is done by boring 4-5 | | | | is also her own webmaster for her real estate sites. |
| foot holes around the desired area of the property | | | | |