What You Should Know Before Buying Land for Development!
c Richard Weisser dba Coweta Fayette Real Estate, Inc.

Purchasing and developing Raw Land is a method used by many to multiply the values of their real estate holding in the shortest possible time frame.  Although this area of real estate investing can be very lucrative, there are many pitfalls that you should try to avoid. Shopping for the lowest price per acre can have the most devastating effect on your plans, as it is the yield of usable land that matters the most. Here are some helpful tips when purchasing raw land:

• Know the total amount of money required to purchase your property.  The selling price or contract price is only a part of real property acquisition.  Once a sale price is agreed upon, you will have expenditures required to determine the suitability of the land for development, and the yield of  lots or commercial pads after development. In most cases, the offer is conditioned upon an agreed to yield of potential lots.  You may want to speak to your Realtor about purchasing an option to purchase the land. He or she can explain all of the details. Here are some items you can expect to pay, but this list is by no means all inclusive:
  • Property Surveys
  • Environmental impact studies
  • Local, State and Federal permits, regulations and requirements
  • Engineering services for platting and utilities
  • Cost studies for actual development
  • Soil tests for septic systems
  • Old grave location
• Once you know the potential yield, you need to determine the actual cost of development.  These expenses include but are not limited to:
  • Tree removal
  • Grading and clearing
  • Installation of streets including ingress and egress to existing roads
  • Installation of all utilities, gas, electricity, water, sewer, telephone, cable etc.
  • Traffic control devices and signage
  • Development of common areas such as parks or wetlands
• You must be aware of these potential problems (and more) that affect yield before you make your offer:
  • Buried toxic or non-toxic waste
  • Old wells and septic systems
  • Cemeteries or old graveyards
  • Underground pipelines
  • Overhead electric transmission lines
  • Areas in the 100 year flood plain
  • Large percentage of underground rocks or boulders
  • Government or utility moratoriums on development

  All content  is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate, Inc.  Copyright 2003-2004. Coweta Fayette Real Estate, Inc is an associate broker of Keller Williams Realty Professionals, Peachtree City Georgia 30269 and serves Coweta County, Georgia and Fayette County, Georgia.