Top 6 Things to consider when buying vacant land

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1. What are your overall goals with the land? If your plan is to utilize your vacant lot for recreational purposes  you might consider the type of recreation you are wanting to enjoy. Whether camping, hunting, fishing, etc., you want to be sure you're permitted to do those particular activities  in the location you're interested in. Many lots backing to national forest or BLM land will allow you plenty of recreational opportunities and space to explore. Are you looking to build on the property? If so, will this be a cabin for vacationing, your forever dream home or possibly an Airbnb? If this is your goal, it's important to review the building and zoning regulations for the county you're looking to purchase in. You also want to consider the cost to build, including the cost of engineering a driveway, installing a well and building out a wastewater management system. 
2. What elevation are you wanting to be at? Colorado's Rocky Mountains are magnificent and many of the vacant properties for sale will range in elevation. When you are up in the higher elevations, you tend to see more challenges associated with climate and weather. Obviously the higher up you are, the cooler the temperatures and thus the longer it takes for snow to melt in the winter season. Typically elevations upwards of 10,000' will have snow on the ground well into June. If your plan is to live on the land year round, you may more closely consider the area you're purchasing in. Is there an H/POA that covers road maintenance or plowing? Do you have the option of plowing on your own when you need to get in and out of the area? Elevation can have an impact on access, which we'll discuss next, and overall usage of the property.
3. What type of access do you need? Many lots for sale in Colorado face access issues. Some lots can be several hundred feet off of a main access road, creating the need for easements from either the National Forest or potentially other private landowners. Easements are not impossible to acquire, but can take time and cost money to finalize and record with the county. Access roads can range from county maintained roads to private dirt roads, to Forest Service trail roads. For year-round access, as mentioned above, it's best to find a property off of a county maintained road. This means the county is ultimately responsible for any road maintenance and plowing throughout the year. Private roads will be the responsibility of the land owner (or several owners in the area) in order to properly maintain and plow the roadway. This is an important attribute to keep in mind on your search.
4. How many acres are you looking for? Knowing how much land to buy is another important aspect to be aware of. The larger the lot, the more upkeep you are ultimately responsible for. Keep in mind that you'll need to mitigate the lot for fire safety, especially if you're up in the more mountainous terrain. This is to keep not only your own property safe, but the surrounding properties as well. Understanding what is on your acreage is also important. Are there ditches or culverts that someone else has ownership and/or easement to? Is the terrain steep, gently sloping, heavily wooded, etc.? All of these things are important when choosing your dream property.
5. What's your overall budget? This may seem obvious, but having your budget in alignment with your overall goals is the most important aspect of your search. If your dream is to own 10+ acres of land to build a Yurt for vacationing and short-term rentals and you'd like to keep goats on the property, you MUST DO YOUR RESEARCH. Many Colorado counties don't allow for Yurts for example as they don't meet foundational or roofing requirements for the county. Some lots are not zoned for farm animals, some counties don't allow for short-term rentals. Cost of building has also got to be included in your plans. Architects, contractors, materials, permitting, excavation. These are all items that need to be considered when planning out your overall budget.
6. How do you plan to finance this purchase? It's important to understand the process when it comes to purchasing land. Cash is King, as the saying goes, when it comes to buying vacant lots. It simplifies the closing process and removes a lot of the paperwork involved with financing. If you are planning to finance the property with a lender, be aware that there are very few establishments that will loan on a vacant land and those that do typically require 40-50% down payment and rates can be up in the 6-8% range depending on your credit score. An appraisal of the lot would also be a requirement of the lender which can cost quite a bit more  than a standard residential appraisal. If a loan is necessary to move forward with your purchase you'll want to have your underwritten pre-approval letter from a lender ready before starting your search. Listing agents will require a proof of funds (cash accounts or lender letter) along with the offer submission.

For all of the reasons listed above, it's really important that you're working with a professional that understands the county rules and regulations and can easily help guide you through the process. If you're interested in buying or selling land in Colorado, call Peartree Property Group today!