Buying Land: What You Need to Know Before You Buy

There’s something exciting about standing on a piece of land and imagining what it could become. Maybe you’re dreaming of building a home, starting a small farm, finding a place for horses, purchasing recreational property, or simply investing in land for the future.

But buying land is very different from buying an existing home.

A beautiful piece of property isn’t necessarily a buildable piece of property—and what you don’t know before purchasing land can become expensive afterward.

Before you fall in love with the view, here are some important things every land buyer should consider.

1. Start With What You Want to Do With the Property

Before beginning your search, think beyond how many acres you want.

What do you actually want to do with the property?

Are you planning to:

Build a primary residence?
Build several years from now?
Place a manufactured home on the property?
Have horses or livestock?
Build a barn or other outbuildings?
Hunt or use the property recreationally?
Operate a business?
Divide the property in the future?
Purchase it strictly as an investment?

Your intended use can dramatically change which properties will work for you.

A piece of land can be beautiful and still not meet your needs.

2. Zoning and Restrictions Matter

Never assume that because a property is vacant—or described as “unrestricted”—you can automatically do anything you want with it.

Depending on the location, there may be zoning regulations, deed restrictions, subdivision restrictions, HOA requirements, building requirements, or other limitations affecting the property.

If you have a specific plan for the land, verify that the intended use is allowed before purchasing.

3. Septic Approval Can Be Critical

If public sewer isn’t available, you’ll likely need an onsite septic system.

One of the most important questions is whether the property has been evaluated or approved for a septic system and, if so, for what size home.

Don’t assume that ten acres—or even fifty acres—automatically means you’ll have a suitable septic site.

The location of the approved area also matters because it can affect where you’re able to place your home, driveway, garage, pool, barn, or other improvements.

4. Investigate Utilities Before You Buy

Seeing a power line or water line along the road doesn’t necessarily mean connecting to it will be simple or inexpensive.

Before purchasing, investigate the availability of:

Electricity
Public water
Natural gas, if desired
Internet and broadband
Telephone service

If you’re planning to build farther from the road, also consider what it may cost to extend utilities to your building site.

In rural areas, buyers may also need to consider wells, propane, or other alternatives.

5. Understand Road Frontage and Access

A property needs more than a path leading to it.

Determine whether the property has legal access from a public road or whether access is provided through an easement or private road.

If an easement is involved, understand exactly where it is located, who has the right to use it, and who is responsible for maintaining the road.

Also consider whether the access is practical for your plans. A driveway that works for a pickup truck may not necessarily work for construction equipment, a horse trailer, RV, or emergency vehicles.

6. Know Where the Property Boundaries Are

Fence lines, tree lines, old roads, utility poles, and what a seller believes to be the property line aren’t substitutes for knowing the actual boundaries.

A current survey can help identify:

Property lines
Acreage
Easements
Encroachments
Road frontage
Rights-of-way

Understanding exactly what you’re purchasing is especially important when buying undeveloped land.

7. Five Acres Isn’t Always Five Usable Acres

This is something buyers sometimes don’t realize until they’re standing on the property.

Topography matters.

A five-acre tract that’s relatively level may provide considerably more usable space than a larger tract that’s extremely steep.

Consider:

Slope
Drainage
Rock
Creeks
Wet areas
Soil conditions
Accessibility

Think about where the home, driveway, septic system, garage, barn, fencing, and other improvements would actually go.

8. Check Flood Zones and Drainage

A creek can make a property beautiful, but water deserves careful consideration.

Investigate whether any portion of the property is located within a designated flood zone and pay attention to natural drainage patterns.

Even property outside a mapped flood zone can have drainage issues after heavy rainfall.

Visit the property more than once when possible—especially after a good rain.

9. Consider the Building Site, Not Just the Land

If you’re purchasing land to build a home, identify potential building sites before closing.

Consider:

Excavation and grading
Foundation requirements
Driveway construction
Utility installation
Septic location
Drainage
Tree removal
Orientation of the home

A less expensive piece of land can sometimes become the more expensive option once site-preparation costs are considered.

10. Understand Manufactured-Home Requirements

If you’re planning to place a manufactured or modular home on the property, verify the requirements before buying.

Local regulations, zoning, deed restrictions, subdivision restrictions, age requirements, foundation requirements, and utility regulations may affect what’s permitted.

Don’t rely solely on a listing description stating that manufactured homes are allowed. Verify the requirements that apply to the specific property.

11. Buying Near a Lake Requires Additional Research

Lake property can present considerations that don’t apply to typical residential land.

A property advertised as having a “lake view,” “lake access,” or being “near the lake” doesn’t necessarily mean you can walk directly to the water or build a dock.

Depending on the lake and governing authorities, there may be additional restrictions involving shoreline access, docks, vegetation, setbacks, and construction.

Topography can also make a significant difference. A spectacular lake view from a steep hillside may require considerably more site preparation than buyers initially expect.

12. Financing Land Is Different From Financing a House

Land loans aren’t always structured like traditional residential mortgages.

Depending on the property and lender, buyers may encounter different:

Down-payment requirements
Interest rates
Loan terms
Appraisal requirements
Credit requirements

If you’re planning to build soon, construction-to-permanent financing may also be worth discussing with a lender.

Talk with a lender who regularly handles land purchases before beginning your search so you understand your options.

13. Think About Resale Before You Buy

Even if you believe you’ll own the property forever, circumstances change.

Consider what another buyer might think about:

Access
Location
Utilities
Restrictions
Topography
Septic approval
Road frontage
Development potential

Buying wisely today can make the property easier to sell in the future.

The Bottom Line

Buying land can be incredibly rewarding, but it’s important to do your homework before closing.

Don’t buy land based solely on acreage, price, or a beautiful view.

Buy it based on whether the property can actually accomplish what you want it to accomplish.

That’s why one of the first questions I ask a land buyer isn’t simply, “How many acres are you looking for?”

It’s:

“What do you want to do with the property?”

Once we know the answer to that question, we can begin looking for land that truly fits your plans.

If you’re considering purchasing land in Middle Tennessee, I’d be happy to help you ask the right questions, investigate your options, and find a property that works for your goals—not just one that looks good on paper.

Betsy Smith, REALTOR®
Better Homes & Gardens Real Estate Town & Lake
Born & Raised in DeKalb County
615-828-8396