Have you ever wanted to buy land in Arizona but aren’t sure about the best way to get started? Here we offer our first 5 steps to follow:
Step 1. Ask Yourself, “Why Land?”
Before buying a piece of vacant land in Arizona, there’s really only one question to ask: what is your ultimate goal? Are you looking for commercial or residential land?Will you resell the land after the purchase? Are you looking to build on the land? If so, what do you want to build? Knowing these answers will guide you to finding your ideal purchase.
Step 2. Locate the Land
There are a handful of ways to find vacant land to buy. First of all, you can call us at 480-442-7787 and we can help you find what you are looking for in Arizona. If you are new to buying vacant land, we know the tips and tricks of the trade. You could also work with a Realtor who has access to the multiple listing service, or MLS. You can also find properties for sale by owner on public posting boards online. There are also public auctions held by cities and counties in Arizona that frequently offer vacant land for sale, mostly due to unpaid taxes.
Step 3. Evaluate the Land
Real estate professionals have easy access to most sources of information for research on vacant land. But, you should plan to do your own research, just as a way to double check.
Search the county records for the deed and ownership history. There should be a clean chain of owners. If not, you may have to deal with legal paperwork, costing you extra time and money. Also, make sure to look up the property taxes. If there are any open certificates and you purchase the property, the owner might be able to take the property back from you before the waiting period is over.
Look into the current and future zoning of the vacant land. Will the municipality’s plans interfere with your own? Will you be able to request an exception? Are there any deed or usage restrictions or building requirements?
Review the physical characteristics of the property. Will it be large enough for your plans? Is there an excessive amount of clearing that needs to be done? Is it on a canal? Does it have direct access to tap into the utility system? Are there plans for utility expansion? Check into the plat maps and any surveys available to make sure there are not any surprise easements you are unaware of.
Step 4. Finance your Land
You’ve found the vacant land you want to buy. Now it’s time to fund the closing! Do you plan to pay cash or do you need a loan? Getting a bank loan to buy vacant land often times proves more difficult than getting a loan to buy a residential or commercial building. There are only a handful of banks that will loan on raw land, and they usually require a much larger down payment.
We offer an option for owner financing. Basically, when you can fund a full down payment, we work with potential buyers to schedule monthly payments for the remaining price of the land. And since we own most of our land, we are able to give you flexible terms.
Another option would be to form a partnership to invest in vacant land. You may form an agreement to pool your funds to buy a larger portfolio of land with larger returns!
Step 5. If You Decide to Hold your Land
Now that you’ve purchased your land, what is your holding plan? Are you going to flip it right away or will you hold it for a few years? Keep in mind, the faster you make a profit, the larger tax you may have to pay. The longer you hold it, the less capital gain tax you will have to pay. But keep in mind there are usually annual taxes and possibly owner’s association dues that come along with land ownership.