The SECRETS of Buying Land they Didn’t Tell YOU.

Summary

This video script offers essential advice for purchasing raw land, emphasizing the importance of due diligence. It covers key steps such as reviewing deed restrictions, conducting land inspections, understanding flood zones, and ensuring legal access. The speaker warns against common mistakes, like overlooking inspection periods or ignoring taxes, which can lead to costly consequences. The summary also highlights the value of a real estate agent in navigating the buying process and the necessity of being proactive in researching the property's surroundings and potential impacts on insurance costs.

Takeaways

• 📝 Conduct due diligence when buying land to avoid common mistakes.
• 📑 Obtain a copy of deed restrictions and covenants once an offer is accepted.
• 🔍 Perform a land inspection to identify any issues that could affect the property's value.
• 🏞️ Check for restrictions on waterfront properties, such as the need for permission from the U.S. Department of Corps of Engineers for docks.
• ⏳ Use the inspection period to gather all necessary information about the property.
• 🚫 Be aware of the time frame for inspections and research to avoid last-minute issues that could lead to losing the deposit.
• 🏡 Understand the restrictions and covenants to know what can and can't be done on the property before investing further.
• 📈 Research neighboring properties to anticipate future developments that could affect property value.
• 🌊 Ensure the property is not in a high-risk flood zone that could lead to expensive insurance premiums.
• 🏘️ A real estate agent can provide valuable guidance and representation without any out-of-pocket costs.
• 📊 Get a survey and flood elevation certificate to understand the property's relation to sea level and potential flood risks.
• 🚫 Avoid purchasing land without proper access, as it could lead to being landlocked and needing servitudes.
• 👢 Walk the property to identify any encroachments or issues not visible in the survey.
• 🌳 Be cautious of environmental factors like standing water, bug infestations, and proximity to amenities.
• 🏦 Remember to pay property taxes to avoid losing ownership due to tax sale.
• 🏡 Consider the emotional aspects of buying land, such as school districts, grocery access, traffic, and crime rates.

Q & A

What is the first step to take after making an offer on a piece of land?

Once the offer is accepted, the first step is to get a copy of the deed restrictions and covenants.

Why is it important to inspect the land before purchasing it?

Inspecting the land is crucial to ensure there are no issues that could hinder its value after purchase, such as restrictions or potential encroachments.

What should a buyer do if they want to put a boat dock on waterfront property?

They need to get permission from the United States Department of Corps of Engineers before making any modifications to the water.

What is the recommended timeframe for conducting inspections and research on a piece of land?

It is advisable to conduct inspections and research during the inspection period, typically 10 to 14 days, after the offer is accepted.

Why is it a mistake to delay research until close to the closing date?

Delaying research until close to the closing date can result in losing the deposit and potentially being sued for specific performance to the contract, which can be costly.

What is the potential legal consequence of backing out of a land purchase after the inspection period?

A buyer can be sued for specific performance to the contract, which may result in having to pay up to 10% of the purchase price of the property.

Why is having a real estate agent beneficial when buying land?

A vetted real estate agent with experience can represent the buyer's interests without any out-of-pocket costs and help avoid common mistakes.

What is the importance of finding out what is going on next to a piece of land being considered for purchase?

Knowing the future developments or properties adjacent to the land can impact its value, as amenities like stores and gas stations can increase property value.

Why is it necessary to check the flood zone status of a property before purchasing?

The flood zone status can affect the cost of flood insurance and the property's eligibility for a mortgage, which are important considerations for long-term ownership.

What document is required to determine the elevation of a property in relation to sea level?

A flood elevation certificate is needed to determine the elevation of the property, which is crucial for assessing flood risks and insurance costs.

What should a buyer do to ensure they have legal access to their property?

They should obtain a survey to identify any servitudes or easements and ensure they have the necessary permissions to access their property.

Why is it recommended to physically walk the property before purchasing?

Walking the property helps identify any potential issues such as encroachments, servitudes, or unexpected features like a cemetery, and ensures there are no surprises after purchase.

What is one common mistake people make after purchasing land that they should avoid?

Forgetting to pay property taxes is a common mistake that can lead to the loss of the property through a tax sale.

What should a buyer consider regarding the proximity of their land to essential services like fire hydrants and police departments?

Being close to essential services can lower insurance costs, which is a benefit to consider when evaluating a piece of land.