Let’s invest in land! But wait, it’s not so simple; there are many factors to consider before you sign on the dotted line. It is well worth considering consulting with professionals to ensure you’re on the right track and the right piece of land when purchasing. So read on as we explore five red flags to look for when buying land for investment in TN.
Utilities and Access
When considering purchasing land as an investment in TN, it is crucial to keep an eye out for any red flags that may impact the land’s future value. One significant red flag to be aware of is whether the land has access to a road and if all essential utilities can provide service to the location.
In some cases, obtaining access to your land may require working with neighboring properties to gain entry. This can potentially result in unexpected costs and delays, making it important to have a plan in place before making a purchase. Being at the mercy of strangers when it comes to accessing your land can be a frustrating and costly experience, highlighting the importance of thorough research before making any investment decisions.
Neighbors
When considering purchasing land for investment purposes in TN, it is crucial to keep an eye out for potential red flags related to neighboring properties. One significant red flag to watch for is any obvious use of the property by neighbors, which may give them certain rights to your land if the use has been prolonged.
It is essential to physically observe any real estate before making a purchase to identify any unpermitted use of the land. Pay attention to any odors emanating from nearby properties or other factors that could limit your full use and enjoyment of the land in the future. Additionally, make sure the surrounding area isn’t a local dumpsite for trash, which could negatively affect the value of your investment.
Another aspect to consider is the attitude of neighboring homeowners towards your proposed land use, particularly if you plan on seeking rezoning. Any conflict or pushback from neighbors can result in significant issues down the road.
Therefore, it is vital to do your research and carefully examine
Zoning
When investing in land in TN, one of the most critical factors to consider is the zoning and land-use regulations in the area. A significant red flag to look out for is any zoning restrictions that could prevent you from using the land for your intended purpose. It is essential to research the local zoning laws and regulations thoroughly and consult with local authorities before making any investment decisions.
Moreover, there are numerous government agencies and laws governing land use at the federal, state, and local levels that you must consider. These regulations can significantly impact your investment and may limit your ability to develop or use the land as you intended. Thus, it is crucial to seek professional advice and guidance to ensure that you comply with all applicable regulations.
Environmental concerns are another crucial factor to consider when investing in land. Protected species and other environmental impacts can restrict land use and prevent you from developing or using the land as you had hoped. Therefore, it is crucial to conduct due diligence to ensure that there are no significant environmental concerns on the property before making any investment decisions.
By thoroughly researching and understanding all zoning, land-use, and environmental regulations, you can avoid investing in land that you cannot use as you wish. Seek professional advice and guidance to ensure compliance with all regulations and laws governing land use. A clear understanding of these regulations can help you make informed decisions and avoid getting stuck in a bad situation in the future.
Boundaries
Another red flag to look for when buying land for investment in TN is an oddly shaped property, the very boundary of which could inhibit your intended use of the property.
Value
Another red flag to look for when buying land for investment in TN is someone rushing you to buy when you’re unsure about land values. It isn’t easy to determine market value, unlike developed real estate, where you can easily compare. An appraisal of the land is a strong backup for the asking price. You should be aware that many experienced professional land investors, like the direct buyers at Memphis Home Buyers, can provide a general estimate within about 5% of the value off the top of their head.
Don’t risk it! Let the pros at Memphis Home Buyers help you spot the red flags when you’re buying land for investment in TN. Memphis Home Buyers makes the process easy, our direct buyers will help you step by step, so you understand the process and feel great about the deal long after closing. And Memphis Home Buyers has a steady inventory of the best land available for investment in Memphis if you don’t already have your land in sight! Let us help you find the best fit for your investment goals. Contact Memphis Home Buyers today at (901) 828-8419.