Undeveloped Real Estate Information

Investing in undeveloped land is a secure way to diversify your portfolio.  Do your research as to the next hot markets.  Historically, Florida, both coasts, the desert southwest and the Rocky Mountains are hot real estate markets for undeveloped land.

New research reveals that appreciation of the value of residential land since the mid-1980s is much more widespread across the country than is commonly believed. Across the country, the price of residential land has risen faster than construction costs by a wide margin, and that almost all large U.S. metro areas have seen significant increases since 1998, says a U.S. Federal Reserve report. 

An implication of the results is that throughout the country the future course of home prices, their average rate of appreciation and their volatility, is likely to be determined by the course of land prices, even more than used to be the case.

Tips To Remember when Buying Undeveloped Land

Zoning - always check with your local County Government office to reveal how the land is legally zoned.

Utilities - Are there hookups for water and sewer, electricity and telephone? If not, find out when the city plans to extend access. If there's no sewer, you'll need to order soil tests from the county health department or a local engineering firm to determine whether the land can support a septic system.
 
Soil Quality - You may need soil borings to determine how far down builders must go to excavate for your foundation.  Too much moisture can add tens of thousands of dollars to building costs.  If you need to dig a well for water, find out how deep you'll likely have to go and how much that will cost.  Water well digging can be very expensive.

Topography - Mountainsides or other steep slopes will affect what you can build and how much it will cost.  Check with a contractor first.  Timberlands mean that you could spend lots of money on tree removal in order to build your dream home.

Road Access - There should always be a deeded right-of-way that gives you the right to access your undeveloped land. You and your neighbors as landowners will be responsible for road upkeep.  Does the road flood during heavy rain or snow?  Always ask the tough "worst case scenario" questions.

Cheap Government Land

There is no federal homesteading program and public land the government does sell is sold only at market value.  Under the Federal Land Management and Policy Act of 1976 (FLMPA), the federal government took over ownership of public lands and abolished all remaining traces of the often-amended Homestead Act of 1862. Specifically, the FLMPA declared that, "the public lands be retained in Federal ownership, unless as a result of the land use planning procedure provided in this Act, it is determined that disposal of a particular parcel will serve the national interest..."  Beware of ads for government land for sale for cheap.