If you’re new to the land buying process, there are helpful tips to remember before putting forward your best and final offer.
Among one of the most important pieces of advice real estate and land experts will give to buyers is for them to budget for costs that will be used for development and fees, in addition to what you’re likely to spend on the property itself.
Where land is situated will determine development costs, so it’s wise to research before deciding on a particular property. Among one of the major costs that a buyer should never ignore is the price you’re expected to pay to bring in utilities to the property.
Most land purchases are made with the intention of building on them, and one of your responsibilities will be to take on the effort of overseeing the process of utilities development.
Here are some suggestions to help you along the process.
Find Out If The Vacant Lot Has Existing Utilities
A first step will be finding out if the property you’re looking to purchase has utilities. Knowing the street address will make the process simple and as quick as an internet search or a phone call.
This step will help you better understand what costs are anticipated in addition to the land’s purchase price. Keep in mind that rural vacant land may mean a lower fee for installation, as opposed to a more residential area. And if there’s no address associated with the parcel, the county offers GIS maps where you may find out the names of roads, nearby intersections, and addresses.
Power, Water, and Sewer For Your Land
With the property’s address or assessor’s parcel number and GPS coordinates, you’re ready to find out more about whether or not public utilities are available. For water and sewer, reach out to the county’s Planning and Zoning Department or the Building Department to ask if the area is serviced by the public system provider.
Conduct a Google Maps search for your county’s power company name, and simply ask whether power lines exist on the road in front of your lot. If services aren’t provided for the property, the company you called may be able to provide information for other companies that can serve the area. The Planning and Zoning Department will also be able to provide you with companies available in the area.
At this point, most potential land buyers are wondering what will running utilities to land cost? There’s no standard answer, and the cost will largely depend on location and how close the land is to public utility connections.
The costs of utilities can range between $10,000 and more than $30,000, and it’s important to note some cities and power companies could potentially charge more for services. For a more precise cost, local service providers or a local contractor can offer an estimate when public utilities aren’t available.
When estimating the cost of water, most homes receive services through a municipal system. Water services through a municipal system will be the easiest and least expensive way to get water for your property.
If no access to municipal water is available, contact the county and request a connection. In order to do so, you’ll be required to install a hookup to the water main. Calculating the costs of procedures, permits, and requirements, the cost of water to your land may range between a few hundred dollars to upwards of $5,000.
If the land you’re considering is outside of the area of municipal water system service, the other option would be to drill your own well. Note that a well installation may be pricey and require an investment of anywhere from $2,000 to $25,000 depending on the depth of the well.
Sewer or septic tank installation is another cost that will depend on the location of your property, and whether there is access to a municipal sewer main.
Connecting Utilities Requires Patience and Budget Planning
Notwithstanding the process involved in identifying sources for utilities and costs involved, with proper planning, some guidance and a bit of patience, purchasing your very own property is an exciting time for anyone new to land buying.