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