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Factors when Purchasing Raw Land



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By : Sonia Smith    99 or more times read
Buying a raw land is a great real estate investment. A raw land can be used to build your dream home. What most people do not realize is that buying one is not as easy as it appears and should be approached with great care and diligence. Unlike a home, a piece of land could look innocent. Homes for sale often have big defects like mold, leaks, cracks and structural problems. With raw land, the problems are more difficult to determine and could sometimes be more severe.

If you want to buy raw land, there are several factors you have to take into consideration before you proceed. Here are some important factors to consider when purchasing raw land.

  1. Determine if the property has any restrictions. Find out from the local title company and secure a copy of the property’s CC&R. An agent can help you with this matter. The CC&R will report any restrictions on the land. It is important to be aware of what you can and cannot do with it before buying.

  2. Perform a survey to determine land boundaries. You can negotiate with a seller for him or her to pay for it. A survey defines the shape and corners of the land, including midpoints and records at the local courthouse.

  3. Look around for lenders since raw land might not have improvements like structure or facilities, thus you will be required to make a larger down payment and pay a higher interest rate. Some lenders require a down payment of up to fifty percent, so it would be preferable to find one, especially if you cannot afford a big down payment.

  4. Make sure that you take time to find out more information regarding the property before buying. The more information you get, the better prepared you will be when approaching prospective lenders.

  5. Determine where the utilities near the land are. If the raw land is located in an area that is not serviced by a city sewer and needs a septic system, it would be a good idea to get an engineers report on the property to find out the size and cost of the system you might have to install.

  6. Establish your goal when purchasing raw land. Are you going to use it for investment purpose or for building a home? A good way to ensure great profits is to use the land for a specific purpose so it will be more profitable in the end. You can use the land for farming, as commercial property or build a home on it.


When buying a piece of land, there are so many things to consider. You will be successful in your purchase if you proceed with care and make your research well. Otherwise, you could end up buying a land that is very difficult to develop. A real estate agent can help you succeed in your purchase. He or she is familiar with the legal aspects and the process of buying a piece of land.
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