Investing in land can be an excellent option for buyers looking to generate profits using an almost entirely hands-off investment strategy. But as with any type of real estate purchase, land comes with its own unique set of responsibilities and complexities. From navigating local real estate laws to ensuring the property’s zoning compliance, it is important for prospective buyers to understand the potential risks of purchasing land. Luckily, by taking the time to thoroughly investigate and consult with experts, a well-informed land buyer can avoid costly mistakes when buying land in Kansas.
As with any other real estate transaction, an effective land sale begins with a detailed sales contract. A knowledgeable real estate attorney can help ensure that the agreement is properly worded to protect a buyer’s rights throughout the process. They can also provide a professional opinion on the title of a land plot, which may uncover any issues that should be addressed prior to closing.
It’s also essential that prospective land buyers have access to the property’s records, zoning information and a professional opinion of its overall value. The location of a land parcel, its history of use and current appreciation trends can all impact its long-term value. It’s also a good idea to evaluate whether the property is suited for the desired uses and whether any permits or permissions will be required.
Another common mistake that buyers make is to underestimate the costs associated with a land purchase. Many people don’t consider expenses like the cost of clearing and preparing a site, utility connections, drainage and fencing. These costs can easily add up and reduce a seller’s final profit.
A final mistake that prospective mistakes to avoid when buying land in Kansas frequently make is focusing too heavily on the price per acre of a property. This metric is often used to compare land values but should not be the sole deciding factor when purchasing property. Land prices differ greatly across the state, with more productive cropland and pasture land commanding significantly higher prices than other types of properties.
Finally, a lot of prospective buyers overlook the importance of a thorough inspection and investigation of the land before they buy it. It is important for a buyer to be aware of any environmental issues resulting from mining or other historic activities that may impact the land long-term. In addition, buyers should be aware of any active leases, equipment storage agreements or encumbrances that could affect future use. In the case of oil and gas drilling, land buyers should be made fully aware of a property’s water rights, drilled or plugged wells and if there is any ongoing or proposed production.