I know some of you have bought raw land before. After doing a bit of searching, I realized I have no instinct for how to analyze a listing. Take, for example, the following:
http://www.redfin.com/CA/Napa/0-Bahia-V ... e/39605673
To me, this looks like an OK deal. The exact listing isn't important, but I've seen a number like it. How do I assess this? Do I basically have to go visit it? Call the local city offices to find out about development?
I'm guessing it's cheap because there will be sewer and electrical assessments, may not be developable, etc. Part of me would like some land that I could just camp on or stick a trailer on. I'm comfortable researching the zoning for that, but I wonder what the other caveats are. For example, PD zoned land... it seems like this could end up being re-zoned fairly arbitrarily.
Any thoughts? If you were looking at this listing, what would be your thought process? Do you know of any good resources on this topic?
Experienced Raw Land Buyers - How to analyze?
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
Question 1: what can you build on it? - know the zoning and building codes and ask the local governing zoning body.
Question 2: Where are the utilities? - water, sewer, electric, natural gas line (bonus). If it's a rural lot, then you want to know whether there is well (or spring), how many gpm, and whether the water quality is good. You'll also want to know the distance to electrical power.
Question 3: Is is level enough to build on without substantial engineering?
Question 4: How much are the property taxes in the area and are there any HOA (or other) fees?
Question 5: What is the neighborhood like and what do the other properties sell for? Are you in the flight path for the airport? Is there a main railroad line that will be blowing whistles at 2am? Is there a junkyard that crushes cars or a factory with a 300-ton forge pounding or a rock quarry where dynamiting occurs?
The example you linked to seems like a good deal for a suburban locale: it's fairly level, has utilities at the street, and is zoned for single-family residential on a larger-than-normal lot.
Question 2: Where are the utilities? - water, sewer, electric, natural gas line (bonus). If it's a rural lot, then you want to know whether there is well (or spring), how many gpm, and whether the water quality is good. You'll also want to know the distance to electrical power.
Question 3: Is is level enough to build on without substantial engineering?
Question 4: How much are the property taxes in the area and are there any HOA (or other) fees?
Question 5: What is the neighborhood like and what do the other properties sell for? Are you in the flight path for the airport? Is there a main railroad line that will be blowing whistles at 2am? Is there a junkyard that crushes cars or a factory with a 300-ton forge pounding or a rock quarry where dynamiting occurs?
The example you linked to seems like a good deal for a suburban locale: it's fairly level, has utilities at the street, and is zoned for single-family residential on a larger-than-normal lot.
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Riggerjack
- Posts: 3199
- Joined: Thu Jul 14, 2011 3:09 am
ok, first, i wouldn't call what you linked to raw land. It's an engineered subdivision.
every plat and subdivision in N King county and all of Snohomish county crosses either my, or one of 3 coworker's desks. i work in the engineering dept of the local telecom.
when a developer wants to divide up a large chunk of land, he goes through the permitting process, sends the plans to us, the power and sewer utilities, we come up with our plans and send him a bill. this allows him to sell lots with all utilities at the street. it will not pass the permitting process w/o these. other, more rural areas may be more lienient. check w/ your local planning dept. have the parcell number when you do.
i have a hard time thinking those costs are included in the price of that lot.
if you want recreational land, buy recreational land. it'll be cheaper, and it will have a reason you can't build a residence on it. flood plain, doesn't perk, too close to wetlands, etc. great for camping and cheap.
when you say raw land, i think in terms of rectangular acreage. land that hasn't been prepped for retail sales. much cheaper by the acre, but more acres. again, if a subdivision has failed in the past, it'll be called recreational land in the listing.
If i had the kind of assets you seem to have, and was looking for camping land, i would be looking for a timberland lot. potential income, and nobody nearby. and woods. but that is where my tastes run.
the great thing about land purchases is the feasibility contingency. it is expected in a land purchase agreement, and allows you to make an offer, knowing that if it doesn't work out the way you want, you have an escape clause.
raw land is riskier than retail lots, as you have to source your water septic power and access, should you want to build, or sell it as a building lot.
hope that helps.
every plat and subdivision in N King county and all of Snohomish county crosses either my, or one of 3 coworker's desks. i work in the engineering dept of the local telecom.
when a developer wants to divide up a large chunk of land, he goes through the permitting process, sends the plans to us, the power and sewer utilities, we come up with our plans and send him a bill. this allows him to sell lots with all utilities at the street. it will not pass the permitting process w/o these. other, more rural areas may be more lienient. check w/ your local planning dept. have the parcell number when you do.
i have a hard time thinking those costs are included in the price of that lot.
if you want recreational land, buy recreational land. it'll be cheaper, and it will have a reason you can't build a residence on it. flood plain, doesn't perk, too close to wetlands, etc. great for camping and cheap.
when you say raw land, i think in terms of rectangular acreage. land that hasn't been prepped for retail sales. much cheaper by the acre, but more acres. again, if a subdivision has failed in the past, it'll be called recreational land in the listing.
If i had the kind of assets you seem to have, and was looking for camping land, i would be looking for a timberland lot. potential income, and nobody nearby. and woods. but that is where my tastes run.
the great thing about land purchases is the feasibility contingency. it is expected in a land purchase agreement, and allows you to make an offer, knowing that if it doesn't work out the way you want, you have an escape clause.
raw land is riskier than retail lots, as you have to source your water septic power and access, should you want to build, or sell it as a building lot.
hope that helps.