How Is Land Acquired:
Methods of Acquiring Land in 2024
Purchasing land can seem daunting at first glance, especially if you are entering into the process for the first time! However, when approached with due diligence of research, you can feel more prepared and excited to purchase land of your own.
Let’s get into it: how is land even acquired?
Methods of Acquiring Land or Property
Imagine you find yourself off the beaten path. The roads are winding, and the tree line rises with each mile. The city fades away, and you finally get a taste of the simple life you have been itching for. Open land, with space for numerous possibilities, is all that's on the horizon. On this scenic drive, you decide this is the life you want, and it's time to take the next steps to make it happen, but what exactly are they?
When it comes to acquiring land or property, there are several methods to consider - each with its own level of processes, legal requirements, and even risks to evaluate. Let's explore a few of them together:
1. Direct Purchase
This is the most straightforward method. Call to mind the winding road and spacious fields. Let's say there is a particular plot that speaks to you. The land seems to roll, and a beautiful oak is just begging to be the center point of your front lawn. As luck would have it, there is a ' For Sale ' sign with a number to call. This scenario has the making of a Direct Purchase Method of acquiring the property- finding a piece of land that you're interested in, negotiating a price with the seller, and then completing the purchase.
While a little idyllic, these things can and have happened before. Yet, however fated land like this may seem, it is important to do thorough research to ensure the land meets your needs and is free of legal encumbrances.
2. Work With A Real Estate Agent
We may be a little biased on this method, but if you find yourself saying, " How would one ensure the property is free of said legal fees and encumbrances?" that's where working with an agent would come in handy. Having an agent's knowledge, expertise, and resources can simplify the purchasing process and all the potential questions and roadblocks you may have along the way. And if worse comes to worse, and the original property you fell in love with is not the right purchase, an agent is right there to help you find another listing of your dreams. They can also assist with negotiations and paperwork, and help keep the process honest until the purchase is complete.
3. Auctions
City life may still have a tight grip on your schedule, leaving you little to no time to escape on a scenic drive. An avenue to consider might be attending a land auction. You can do a little googling on your lunch break or look for information provided on your state government website, which may offer information like surplus property regulations, surplus land review processes, current sealed bid auctions, and approved surplus right of way. In some cases, you may have the option of viewing the auction online right from the comfort of your home or cubicle. Just don’t tell your boss we suggested attending an online auction during work hours.
The flexibility of time, method of attendance, and acquiring land for a lower price are definite wins when it comes to purchasing land via auction, yet remember that it's important to do your homework on the property beforehand. Auctions often have different rules and may require immediate payment.
4. Lease with an Option to Buy
Not quite ready to take the full leap and purchase property? We get it! Land often comes with a lifestyle shift, even if that looks like something as simple as extra minutes added onto your grocery run. In some cases, you can lease land with an option to purchase it at the end of the lease term. This allows you to use the land while saving or deciding if it fits you. You might like the extra time you get to listen to your favorite podcast or Willy Nelson album.
5. Land Swap
This can be an option if you already own property or a residence. Perhaps that scenic drive you were on was the long way to get to your friend's little slice of paradise. You meet up with them for dinner every once in a while, and this time, while flipping burgers on the grill, you both express how nice the other’s living situation is. Your friend just got a job in the city, and the commute is killing them, while you are now able to work from home and want some wide open space to gaze out upon during the 9-5 hours. Thus, the beauty of a Land Swap, or in more official terms, a 1031 exchange. From an aerial view, a 1031 exchange, also known as a like-kind exchange, is a process outlined by Section 1031 of the U.S. Internal Revenue Code that allows an investor to defer capital gains taxes on the exchange of certain types of property.
It’s a unique way to acquire land, requiring much detail and know-how for navigating all the steps and requirements, such as understanding the eligibility requirements, using a Qualified
These avenues are just a few ways to go about acquiring land in 2024. Whether you choose to bid at an auction, lease a few acres, or work with an agent, we hope these suggestions have given you ideas of how to make purchasing land a reality this year. As you consider these methods, remember to:
Conduct thorough research and due diligence
Understand the legal requirements and zoning laws in the area where the land is located.
Consider the total cost, including taxes, fees, and any necessary development or maintenance expenses.
Evaluate the land's potential for appreciation or depreciation in value.
Consider environmental factors and access to utilities and infrastructure.
The process of acquiring land can vary greatly depending on your location, so please don’t hesitate to reach out to one of our agents with any questions you may have along the way. It would be our pleasure to help you find your dream property. And if you don’t see any scenic drives in the near future, we have a few listings that might just do the trick.