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They Aren’t Making Any More Of It, So Should You Buy? - Dan Vollmer

They Aren’t Making Any More Of It, So Should You Buy?

7People have all kinds of reasons for buying land.  Some buy for recreation.  Others to hold as an investment.  Some buy for the future – to build or develop – and still others buy to build right away.  Some buyers want lots of land – they like privacy and a ‘buffer’ between them and their closest neighbor.  But some folks want to build a home for their family in a community with other families and amenities, so they prefer a neighborhood lot.

I once had a colleague tell me that somewhere in the range of 75% of the people he had helped by land, eventually called him to resell it again in the future!  Why is that?  Well, sometimes folks think they’re going to use something for a certain purpose, and that purpose never materializes.  Either they think they’re going to build – or they think their going to go ‘down to the river’ on the weekends – and those plans never come together.

I’m thinking about land purchases this week because I have a couple clients who are making land purchases, both for varying reasons.  I believe they’ll both beat the odds, build what they have in mind, and make excellent use of their properties.10

So if you’ve been considering buying some land, here’s a few thoughts to consider:

  1. What’s the plan:  If you want to build, when will that be?  If you plan to hunt or camp or use it for recreation, what else will you need to be able to enjoy the property?  Will you also need to buy a boat, build a cabin, or adjust your work schedule?  The property may be affordable, but your lifestyle may not be flexible enough to enjoy it.
  2. What’s the plan B: meaning, if you can’t use it for what you intended, what will you do with it then?  If you can’t build on it, can you sell it?  Can you afford to hold it if it doesn’t sell?  Or on the other side, if you find you can’t get time away to use it for recreation, will you sell it, donate it, hold it for longer?
  3. Know what you WANT to do, so you’ll know what you NEED to do:  If you’re planning to build, you should know roughly the home you want to construct.  You may need to dig a well and install a septic system, or you may be able to access public utilities.  And if you plan to hunt, fish, camp or otherwise recreate on your land – same thing.  Will you need access to plumbing and electricity?  Are there restrictions on the land that will inhibit you from using it as you intend?

Having a homesite to build on, or a few acres to use for fun on the weekends, can be a wonderful way to enhance your lifestyle.  And dreaming about that future is great – you should absolutely do it.  Just take these tips into consideration as you dream…

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