Acquiring land would seem to be a fairly easy property type to due diligence; however, there are some factors that should be considered. Not fully understanding them could materially impact land value and future use.
- Zoning and entitlements: Contact the city or county for information.
- Soils condition for building.
- Drainage issues and site topography.
- Environmental hazard, particularly when the land had a prior use or is adjacent to older industrial or gas station uses.
- Utilities availability, access and connection fees.
- Property Taxes: Assess whether the property will have a material assessment change based on the purchase price.
- Underlying title matters.
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