8 Guidelines for Buying Land
Buying land is a significant decision. These eight essential guidelines will help you evaluate key factors, avoid costly mistakes, and make an informed investment.
Key Considerations When Buying Land
Buying land is a significant investment that requires careful consideration. Eli Property has compiled these essential guidelines to help buyers make informed decisions, avoid common pitfalls, and secure valuable real estate assets. By following these steps, investors can ensure a smooth and successful purchase process.
Decide what best fits your needs
The first step is to determine the type of climate and location that best suit your lifestyle and
goals. Identifying key factors such as weather conditions, accessibility, and surrounding
infrastructure helps narrow down options and prevents wasted time and resources on properties
that do not meet your needs.
Stick to a budget
A well-planned budget ensures a comfortable and feasible investment. Property values fluctuate,
and once-affordable areas may experience rapid appreciation. Evaluating financial capabilities
and setting clear limits prevents overextension while allowing for a wise purchase.
Be realistic
There is no such thing as a "perfect property." Many buyers spend years searching for the ideal
plot, only to realize that opportunities have passed them by. Focusing on practical features and
being flexible in expectations leads to a more successful acquisition.
Watch out for opinions
Friends and family are often quick to offer advice on real estate decisions. While wellintentioned, relying on unverified opinions rather than professional guidance can lead to costly
mistakes. Seeking insights from experienced professionals and verified sources is always the best
approach.
Always do business with a reputable company
A trustworthy real estate company provides transparency and verified customer testimonials. Before proceeding with any purchase, conducting due diligence, reviewing past client experiences, and verifying credentials help ensure a secure transaction. Reputable companies are happy to provide references upon request.
Never buy land without title insurance and a recorded deed
A legal transaction requires a recorded deed and title insurance at the time of purchase—not years later. Some companies offer land contracts where the buyer does not receive legal ownership until the final payment is made, creating financial and legal risks.
Buying real estate without title insurance is extremely risky, as liens, unpaid property taxes, judgments, and federal tax liens may be recorded against the land. Title insurance ensures that the seller legally owns the property and has the right to sell it, protecting buyers from future disputes. Receiving a recorded deed at the time of purchase guarantees ownership and ensures that tax bills are issued correctly.
Check the zoning and CC&Rs before you buy
Zoning laws and CC&Rs (Covenants, Conditions, and Restrictions) determine how a property can be used. Before purchasing, buyers should confirm that the land meets their intended purpose—whether for residential, agricultural, or commercial use.
Custom Homes – Some areas restrict mobile homes or specific building styles. Livestock Restrictions – If farming or animal husbandry is planned, zoning laws must permit it. Avoid “Boondock” Properties – Remote, undeveloped land without water, power, or road access often requires significant investment in infrastructure, making it a poor choice for most buyers. Many properties advertised online with low down payments and high-interest rates fall into this category, resulting in unforeseen costs for development and security concerns.
Take action
The difference between those who succeed in real estate and those who miss opportunities often comes down to the ability to make a decision. Many potential buyers research properties extensively but hesitate when it comes time to act. Real estate values change over time, and wellpositioned properties will not remain available indefinitely. Thorough research, combined with expert guidance, allows buyers to make confident and timely investments.
For more information, visit our Frequently Asked Questions page or contact our team for expert advice.